PS Raj Steels, part of the renowned PSSR Group, is a major player in India's Stainless Steel Pipes & Tubes industry. Established in 1996, the company has gained recognition for its dedication to manufacturing high-quality Stainless Steel Tubular solutions. In 2004, PS Raj Steels Limited was incorporated, and today, it’s set to raise ₹ 28.28 Crores through its initial public offering (IPO). This marks a significant milestone in its growth journey, offering investors an opportunity to be part of the company's future growth.

IPO Overview

The PS Raj Steels IPO opens on February 12, 2025, and will close on February 14, 2025. With an entirely Fresh Issue of 20.20 Lakh Shares, the IPO is poised to raise substantial funds for the company. The price band is set at ₹ 132 to ₹ 140 per equity share. At the upper price band of ₹ 140, the market capitalization of PS Raj Steels Limited will be ₹ 105.53 Crores.

The lot size for this IPO is 1,000 shares, making the minimum investment for retail investors ₹ 1,40,000, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹ 2,80,000 (2 lots). The company has also raised ₹ 7.96 Crores from Anchor Investors at the upper price band of ₹ 140.

PS Raj Steels IPO Subscription Status

As of February 13, 2025, the PS Raj Steels IPO live subscription status shows that the IPO has been subscribed 2.31 times on the second day of the subscription period. This indicates strong demand from investors and suggests that the IPO could witness further subscription in the coming days. Investors can keep track of the live subscription status on the NSE for real-time updates.

Grey Market Premium (GMP)

Currently, the Grey Market Premium (GMP) of PS Raj Steels IPO stands at ₹ 0, indicating no significant premium at the moment. However, as the listing date approaches, the GMP may change based on demand and market sentiment. Investors should note that GMP trends are not indicative of the actual listing price and are often unreliable for making investment decisions.

PS Raj Steels IPO Allotment Process

The PS Raj Steels IPO allotment will be finalized on February 17, 2025. Once the allotment process is complete, investors can check their allotment status online. To do so, simply visit the Registrar's website, select the IPO name, and enter the required details such as application number, PAN, or DP Client ID.

Financials and Valuation

PS Raj Steels has demonstrated strong financial growth over the past few years. For the fiscal year ending September 30, 2024, the company reported revenues of ₹ 13,911.59 Lakh with a profit after tax of ₹ 386.62 Lakh. The company's EBITDA for the same period was ₹ 635.67 Lakh.

The pre-issue earnings per share (EPS) stands at ₹ 11.53, and the post-issue EPS is projected to be ₹ 8.44. The company’s Price-to-Earnings (P/E) ratio is 12.14x on a pre-issue basis, which is attractive compared to the industry P/E of 49x, indicating that the IPO is fairly priced.

PS Raj Steels IPO Objectives

The primary goal of the PS Raj Steels IPO is to raise funds to meet the working capital requirements of the company, which is crucial for supporting its expanding operations. The company plans to utilize the funds raised for improving infrastructure, enhancing production capacity, and expanding market reach.

IPO Review

Given the strong financial performance and growth prospects of PS Raj Steels, the IPO presents an attractive investment opportunity, although the Grey Market Premium suggests a cautious approach. Considering the industry’s average valuation and the company’s steady profit growth, we recommend investors to carefully evaluate their risk appetite before making a decision.

The Upcoming IPOs in this week and coming weeks are Quality Power Electrical Equipments, L.K. Mehta, Shanmuga Hospital.

The Current active IPO are PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies, Ajax Engineering, Chandan Healthcare.

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