PS Raj Steels Limited, a reputed name in the stainless steel pipes and tubes industry, is set to launch its Initial Public Offering (IPO) in 2025. With decades of experience, the company has established itself as a key player in manufacturing and supplying high-quality stainless steel tubular solutions. The IPO will raise ₹28.28 crores through a fresh issue of 20.20 lakh shares, with a price band of ₹132-₹140 per equity share.

The subscription window for the PS Raj Steels IPO opens on February 12, 2025, and closes on February 14, 2025. The allotment is expected to be finalized on February 17, 2025, with listing on the NSE SME platform scheduled for February 19, 2025. The market capitalization of PS Raj Steels Limited at the upper band of ₹140 per share is estimated at ₹105.53 crores.

Key Details of PS Raj Steels IPO

Retail investors must apply for a minimum of one lot consisting of 1,000 shares, amounting to ₹1,40,000, while High-Net-Worth Individuals (HNIs) need to invest in at least two lots, requiring a minimum investment of ₹2,80,000.

The company has secured ₹7.96 crores from Anchor Investors, allocating 5,69,000 equity shares at ₹140 per share. KHAMBATTA SECURITIES LIMITED is the book running lead manager for the IPO, with BIGSHARE SERVICES PRIVATE LIMITED acting as the registrar and Nikunj Stock Brokers Limited as the market maker.

Grey Market Premium and Valuation

The Grey Market Premium (GMP) for PS Raj Steels IPO is currently ₹0, suggesting no expected listing gains based on unofficial trading activity. While GMP trends can fluctuate, it is important to focus on the company's fundamentals rather than relying solely on grey market movements.

Financially, PS Raj Steels has demonstrated consistent growth. The revenues from operations for the fiscal year ended 2024 stood at ₹29,776.39 lakh, compared to ₹22,544.28 lakh in 2023 and ₹17,989.39 lakh in 2022. The EBITDA for these years was ₹1,081.56 lakh, ₹696.36 lakh, and ₹688.30 lakh, respectively, while the Profit After Tax for FY24 was ₹636.29 lakh.

The company’s financial indicators include a pre-issue Earnings Per Share (EPS) of ₹11.53 and a post-issue EPS of ₹8.44 for FY24. The pre-issue Price-to-Earnings (P/E) ratio is 12.14x, while the post-issue P/E ratio is 16.59x. Comparatively, the industry average P/E ratio is 49x. The Return on Capital Employed (ROCE) for FY24 stands at 20.64 percent, with a Return on Equity (ROE) of 20.79 percent.

Objectives of the IPO

The primary objective of the IPO is to fund the company’s working capital requirements. A total of ₹2,650.00 lakh has been allocated for this purpose, ensuring financial stability and future growth.

Should You Invest in PS Raj Steels IPO?

While the company has a strong track record and steady financial performance, the lack of Grey Market Premium indicates limited short-term listing gains. Investors looking for quick profits may reconsider their options, while long-term investors could find value in PS Raj Steels due to its stable revenue growth and profitability.

The Upcoming IPOs in this week and coming weeks are PS Raj Steels, Chandan Healthcare, Ajax Engineering, Voler Car, Maxvolt Energy, Hexaware Technologies, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are Eleganz Interiors, Readymix Construction, Solarium Green.

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