PS Raj Steels Limited, a part of the esteemed PSSR Group, has opened its Initial Public Offering (IPO) on February 12, 2025. The company is set to raise ₹28.28 Crores through the offering of 20.20 lakh fresh shares. The IPO, which closes on February 14, 2025, aims to provide investors with an opportunity to be part of one of India's most trusted names in the stainless steel pipes and tubes industry.

PS Raj Steels IPO Price Band and Market Cap

The price band for the PS Raj Steels IPO is set between ₹132 and ₹140 per equity share. With a market capitalization at the upper price band of ₹140, the company is valued at ₹105.53 Crores. The lot size is set at 1,000 shares, requiring retail investors to invest a minimum of ₹1,40,000. High-net-worth individuals (HNIs) must invest in multiples of two lots, which amounts to ₹2,80,000.

PS Raj Steels IPO Subscription Status

As of February 14, 2025, the subscription status of the PS Raj Steels IPO shows that the issue has been subscribed 6.23 times on its last day of subscription. This indicates healthy demand for the shares, although it is essential to note that the grey market premium (GMP) stands at ₹0. The GMP, which reflects the unorganized trading of shares before the official listing, is purely for informational purposes and should not be used to predict the listing price.

Anchor Investors and Fundraising Details

The company raised ₹7.96 Crores from anchor investors, who were allotted 5.69 lakh shares at ₹140 each. Anchor investors are institutional investors who subscribe to the IPO before it opens to the public, providing a sign of confidence in the company's prospects.

PS Raj Steels IPO Financial Overview

The company has demonstrated steady growth, with revenues for FY24 reaching ₹13,911.59 Lakh. The pre-issue earnings per share (EPS) is ₹11.53, while the post-issue EPS is ₹8.44. The company has a strong return on capital employed (ROCE) of 20.64% and return on equity (ROE) of 20.79%, indicating healthy financials.

Investment Consideration

Given the financial performance and the price band, the IPO appears fairly priced compared to the industry average, which has a P/E ratio of 49x. However, the grey market premium (GMP) of ₹0 indicates that investors should exercise caution when investing in this IPO if they are expecting immediate listing gains.

PS Raj Steels IPO Allotment Process

The allotment of PS Raj Steels IPO will be finalized by February 17, 2025, and the shares will be listed on the NSE SME platform on February 19, 2025. To check your allotment status, visit the registrar's website and enter your application details, such as PAN number or DP Client ID.

Conclusion

The PS Raj Steels IPO offers investors an opportunity to participate in the growth of a well-established name in the stainless steel pipes and tubes industry. However, with no significant grey market premium and a modest listing expectation, investors should assess their risk appetite before subscribing to the issue. For detailed information on upcoming IPOs, visit the latest IPO list and market news.

The Upcoming IPOs in this week and coming weeks are Royalarc Electrodes Limited, Tejas Cargo India Limited, Quality Power Electrical Equipments.

The Current active IPO are  L.K. Mehta, Shanmuga Hospital, PS Raj Steels, Voler Car, Maxvolt Energy, Hexaware Technologies.

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