The Rajputana Biodiesel IPO, a promising entry into the SME segment, is set to open for subscription on November 26, 2024, and will remain open until November 28, 2024. The IPO, a book-built issue of ₹24.70 crores, will consist entirely of a fresh issue of 19 lakh equity shares.

IPO Details

• Issue Size: ₹24.70 crore
• Price Band: ₹125 to ₹130 per equity share
• Lot Size: 1,000 shares per lot
• Minimum Investment for Retail Investors: ₹130,000
• Minimum Investment for HNIs: ₹260,000 (2 lots)
• Listing Exchange: NSE SME
• Tentative Listing Date: December 3, 2024

The IPO is managed by GYR Capital Advisors Private Limited as the Book Running Lead Manager, while Maashitla Securities Private Limited serves as the registrar for the issue. Giriraj Stock Broking is the market maker for this IPO.

Objectives of the Issue

The proceeds raised from the IPO will be utilized to:

1. Provide a loan to the subsidiary, Nirvaanraj Energy Private Limited (NEPL): Funds will support capital expenditure for expanding its manufacturing facility in Meerut, Uttar Pradesh.
2. Meet working capital requirements: Enhancing operational efficiency by bolstering liquidity.
3. General corporate purposes: Strengthening financial flexibility and supporting other growth initiatives.

Subscription Timeline

• Opening Date: November 26, 2024
• Closing Date: November 28, 2024
• Allotment Date: November 29, 2024
• Listing Date: December 3, 2024

Market Opportunity

Rajputana Biodiesel operates in a sector poised for growth, driven by increasing demand for renewable energy solutions and government incentives for sustainable practices. The company’s focus on expanding its manufacturing capabilities through its subsidiary Nirvaanraj Energy Private Limited positions it well to capitalize on this opportunity.

Investment Considerations

• Strengths:

  • Focused growth strategy with a strong emphasis on biodiesel and renewable energy.
  • Expansion plans for manufacturing facilities to cater to rising demand.

• Risks:

  • SME IPOs typically carry higher risks compared to large-cap IPOs due to market volatility.
  • Dependence on a single subsidiary for expansion plans may pose concentration risks.

How to Apply

Investors interested in the Rajputana Biodiesel IPO can apply through their respective stockbrokers or online trading platforms. The IPO is suitable for those seeking exposure to the growing renewable energy sector, with a focus on biodiesel production.

Allotment and Listing

• Allotment Finalization: November 29, 2024
• Listing on NSE SME: December 3, 2024

With a robust focus on green energy solutions, Rajputana Biodiesel IPO offers a unique opportunity to invest in the rapidly evolving renewable energy sector, though caution is advised due to the inherent risks associated with SME IPOs.

The Upcoming IPOs in this week and coming weeks are Lomosaic India, C2C Advanced System, Enviro Infra, Rajesh Power Services, Rajputana Biodiesel, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO is NTPC Green Energy.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.