PS Raj Steels Limited, a trusted name in the stainless steel pipes & tubes industry, is launching its IPO in February 2025. Founded in 1996 and incorporated as P S Raj Steels Limited in 2004, the company has grown to become a leading manufacturer of stainless steel tubular solutions. The company plans to raise ₹28.28 Crores through a Book Built Issue, with 20.20 Lakh shares being offered in the Fresh Issue.

The IPO opens for subscription on February 12, 2025, and will close on February 14, 2025. The allotment will be finalized on February 17, 2025, and shares are expected to list on the NSE SME platform on February 19, 2025. The price band for the IPO is set between ₹132 and ₹140 per share.

Market Capitalization and Lot Size

At the higher end of the price band (₹140), the market capitalization of PS Raj Steels will be ₹105.53 Crores. Retail investors will need to invest a minimum of ₹1,40,000 for 1,000 shares. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,80,000 for 2,000 shares (2 lots).

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for PS Raj Steels is currently reported as ₹0, which indicates no expected listing gain. The GMP can fluctuate, depending on market demand and supply, but it is not an official measure of the company's performance or listing price.

Financial Performance and Valuation

For the year ending September 30, 2024, PS Raj Steels reported revenues of ₹13,911.59 Lakhs, down from ₹17,989.39 Lakhs in 2022. The EBITDA for FY24 stands at ₹635.67 Lakhs, and the Profit After Tax (PAT) is ₹386.62 Lakhs, indicating a steady growth pattern.

The Key Performance Metrics for the IPO show a pre-issue EPS of ₹11.53 and a post-issue EPS of ₹8.44. The P/E ratio before the issue stands at 12.14x, with the post-issue P/E ratio at 16.59x, compared to the Industry P/E ratio of 49x. These figures suggest that the IPO is fairly priced in terms of the company's financial standing.

Given the financial performance and valuation of PS Raj Steels, investors are advised to avoid the IPO for listing gains, as there is no expected GMP at this time.

The Upcoming IPOs in this week and coming weeks are Eleganz Interiors, PS Raj Steels, Chandan Healthcare, Ajax Engineering, Hexaware Technologies.

The Current active IPO are Readymix Construction, Solarium Green, Ken Enterprises, Amwill Healthcare,Chamunda Electricals.

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