Rajputana Biodiesel Limited (RBL) is a prominent player in the renewable energy sector, specializing in manufacturing biodiesel and its by-products such as glycerine and fatty acids. Established in 2016 and transitioning to a public limited company, RBL operates a state-of-the-art production facility located in Phulera, Rajasthan, with an approved production capacity of 30 KLPD and an installed capacity of 24 KLPD.

This upcoming Rajputana Biodiesel IPO is a Book Built Issue for ₹24.70 crores, consisting of a fresh issue of 19 lakh equity shares. The IPO will open for subscription from November 26, 2024, and close on November 28, 2024. The allotment date is set for November 29, 2024, and the shares are expected to be listed on the NSE SME segment on December 3, 2024.

IPO Pricing and Key Details

The IPO price band has been set between ₹123 to ₹130 per equity share, and the market capitalization of the company at the upper price band will be approximately ₹91.44 crores.

• Lot size: 1000 shares
• Minimum investment for retail investors: ₹1,30,000
• Minimum investment for HNIs: ₹2,60,000 (2 lots)

Book-Running Lead Manager: GYR Capital Advisors Private Limited
Registrar: Maashitla Securities Private Limited
Market Maker: Giriraj Stock Broking

The IPO provides a significant opportunity to invest in a company that is making strides in the biofuels industry, which is gaining momentum due to India's push for sustainable and renewable energy sources.

Grey Market Premium (GMP) Insights

The Grey Market Premium (GMP) for Rajputana Biodiesel IPO is currently ₹30, or approximately a 23% premium at the upper price band of ₹130. The GMP is an unregulated market figure and reflects the demand-supply balance for the stock in the grey market. However, it should be noted that trading in the grey market is speculative and carries inherent risks. The GMP is provided solely for informational and educational purposes, and it is not a reliable indicator of the actual listing price.

Subscription Status and Demand Surge

As of November 28, 2024, the Rajputana Biodiesel IPO has been subscribed 645.81 times, reflecting high demand from retail and institutional investors. The overwhelming subscription indicates strong investor confidence in the company’s future growth prospects, particularly within the growing renewable energy sector.

• Total subscription (as of 7:00 PM on November 28, 2024): 645.81 times
• Investor Categories: Retail, Qualified Institutional Buyers (QIBs), and Non-Institutional Investors (NIIs)

Investors can track the live subscription status of the IPO via the NSE website or by visiting the registrar’s page.

Anchor Investors Participation

Rajputana Biodiesel has successfully raised ₹6.70 crores from Anchor Investors at the upper price band of ₹130 per share. The company allocated 5,15,000 equity shares to the anchor investors, ensuring solid support from institutional investors before the public issue. Anchor investors typically show confidence in the IPO, making it an important factor for retail investors to consider.

IPO Allotment Process

Rajputana Biodiesel IPO allotment will be finalized on November 29, 2024, and investors can check their allotment status online using the following steps:

1. Visit the Registrar’s website (Maashitla Securities Private Limited).
2. Select Rajputana Biodiesel IPO from the dropdown list of IPOs.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the information to view the allotment status.

This online tool will allow investors to track their allotment and take the next steps, whether they have received shares or not.

Objectives of the IPO and Use of Proceeds

The proceeds from the Rajputana Biodiesel IPO will be utilized as follows:

1. Loan to Subsidiary: ₹4.20 crores will be allocated to the subsidiary Nirvaanraj Energy Private Limited for the expansion of its existing unit.
2. Working Capital: ₹12.20 crores will be used to meet the company’s working capital requirements, enabling smooth business operations.
3. General Corporate Purposes & Issue Expenses: The remaining funds will be used for general corporate purposes and to cover IPO-related expenses.

Company Overview and Strengths

Rajputana Biodiesel Limited has a strong foothold in the biofuels sector with an established manufacturing facility and long-standing relationships with public sector undertakings (PSUs). The company’s flexible manufacturing setup allows it to handle multiple feedstocks, ensuring it can adapt to the market's changing demands. Its focus on sustainability and commitment to expanding production capabilities make it a significant player in India’s growing renewable energy market.

Growth Prospects in the Renewable Energy Sector

India’s renewable energy sector is booming, driven by government initiatives like the National Mission on Biodiesel. By 2030, the Indian government plans to achieve 20% ethanol blending in petrol and 5% biodiesel blending in diesel, providing significant opportunities for companies like Rajputana Biodiesel to grow. As a part of its expansion strategy, the company is exploring export markets and new production technologies to stay ahead in this competitive sector.

Risks and Concerns

While Rajputana Biodiesel shows strong potential, there are several risks to consider:

1. Regulatory Risks: Changes in government policies could impact operations, especially in a regulated industry like biofuels.
2. Supply Chain Disruptions: Dependence on feedstock availability and pricing can affect production and profitability.
3. Market Competition: The biofuels industry is highly competitive, and new entrants may intensify the challenge.

Conclusion

The Rajputana Biodiesel IPO is an exciting opportunity for investors looking to enter the growing renewable energy sector in India. With a solid business model, robust subscription demand, and promising future growth prospects, Rajputana Biodiesel is poised to make a significant impact in the biodiesel industry. However, as with any investment, it is crucial for investors to assess the risks and make informed decisions based on their financial goals.

The Rajputana Biodiesel IPO represents an opportunity to invest in a sustainable business that aligns with India’s renewable energy targets. If you’re interested, don’t forget to check the allotment status once the results are announced on November 29, 2024.

The Upcoming IPOs in this week and coming weeks are Property Share REIT, Nisus Finance, Emerald Tyre Manufacturers, Rosmerta Digital and Avanse Financial. The Current active IPO is Ganesh Infraworld, Suraksha Diagnostic, Agarwal Toughened.
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