Rajputana Biodiesel Limited, a leading manufacturer and supplier of biofuels and their by-products like glycerine and fatty acids, has opened its Book Built Issue IPO for ₹24.70 Crores. The issue consists entirely of a fresh issue of 19 lakh shares, with the subscription period running from November 26 to November 28, 2024. The allotment date is set for November 29, 2024, and the listing date is expected on December 3, 2024, on the NSE SME.

The IPO has set a price band of ₹123 to ₹130 per equity share. At the upper price band of ₹130, Rajputana Biodiesel Limited’s market capitalization will be ₹91.44 Crores. The lot size is 1,000 shares, requiring an investment of ₹1,30,000 for retail investors. HNIs can apply for 2 lots (2,000 shares), making a minimum investment of ₹2,60,000.

The book-running lead manager for the issue is GYR Capital Advisors Private Limited, while Maashitla Securities Private Limited acts as the registrar. Giriraj Stock Broking will be the market maker for the IPO.

Rajputana Biodiesel Limited IPO Key Highlights:

• IPO Issue Size: ₹24.70 Crores
• Fresh Issue: 19 Lakh Shares
• Price Band: ₹123 to ₹130 per equity share
• Market Capitalization: ₹91.44 Crores at ₹130 per share
• Subscription Period: November 26, 2024 to November 28, 2024
• Allotment Date: November 29, 2024
• Listing Date: December 3, 2024

Grey Market Premium (GMP):

As of now, the GMP of Rajputana Biodiesel Limited IPO stands at ₹30 (a 23% premium). This suggests that the stock is in high demand in the unorganized grey market, and many investors are speculating a strong listing on December 3, 2024. However, it’s important to note that GMP is not an accurate indication of the listing price as it’s determined by supply and demand in the grey market, which is an informal market. Real trading prices will only be discovered once the shares are listed on the stock exchange.

Subscription Status:

As of 5:00 PM on November 28, 2024, the Rajputana Biodiesel IPO was oversubscribed 645.73 times on its final day of subscription. This indicates overwhelming investor interest in the offering, signaling strong confidence in the company’s growth potential and the biofuels sector. You can check live subscription updates for the Rajputana Biodiesel IPO at the NSE.

Anchor Investors:

Rajputana Biodiesel has raised ₹6.70 Crores from anchor investors at the upper price band of ₹130 per share. The company allocated a total of 5,15,000 shares to anchor investors, signaling strong institutional interest in the IPO. The anchor investor shares are allocated from the Qualified Institutional Buyers (QIBs) portion, further strengthening the IPO’s credibility.

Rajputana Biodiesel Limited IPO Allotment Process:

The Rajputana Biodiesel IPO allotment will be finalized on November 29, 2024, and the status will be made available on the registrar's website. To check the allotment status, investors can:

1. Go to the IPO allotment status page.
2. Select Rajputana Biodiesel Limited IPO from the dropdown list of IPOs.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to get the allotment status.

Objectives of the IPO Proceeds:

The funds raised from the fresh issue will be used for the following purposes:

1. ₹420 Lakhs will be utilized for a loan to the subsidiary (Nirvaanraj Energy Private Limited) to support the expansion of its existing unit.
2. ₹1,220 Lakhs will be used to fulfill the working capital requirements.
3. The remaining funds will be allocated for general corporate purposes and covering the issue expenses.

About Rajputana Biodiesel Limited

Rajputana Biodiesel Limited (RBL), initially incorporated as Rajputana Biodiesel Private Limited on November 10, 2016, specializes in the manufacturing and supply of biofuels, primarily biodiesel, along with by-products such as glycerine and fatty acids. The company operates from a 4,000 sq. m. facility in Phulera, Rajasthan, and has an approved production capacity of 30 KLPD and an installed capacity of 24 KLPD.

The company’s operations are designed to handle multiple feedstocks, which enables it to quickly adapt to market demands. RBL is currently focused on expanding its production capabilities and is exploring export markets to boost its international presence.

Industry Overview:

The renewable energy sector in India is undergoing significant growth, with biofuels playing a central role in reducing carbon emissions and providing an alternative to conventional fossil fuels. The government’s target of 20% ethanol blending in petrol and 5% biodiesel blending in diesel by 2030 is expected to fuel this growth. However, challenges include fluctuating state-level policies and the ongoing transition to electric vehicles.

Despite these challenges, Rajputana Biodiesel is well-positioned to capitalize on the increased demand for biofuels by leveraging its state-of-the-art production facilities and its commitment to innovation and sustainability.

Business Strengths:

• Diversified Revenue Streams: Revenue is generated from both biodiesel and its valuable by-products, which ensures stability.
• Strong Manufacturing Facility: RBL’s owned facility provides better control over production and quality.
• Flexible Operations: The ability to process multiple feedstocks gives the company a competitive edge in adapting to market shifts.
• Experienced Management Team: The skilled workforce and management team ensure efficient operations and long-term strategic growth.

Business Strategies:

• Expanding Production: RBL plans to expand its production capacity by investing in local feedstocks and upgrading existing facilities.
• Renewable Energy Commitment: By adopting advanced biofuel technologies, RBL aims to reduce its environmental footprint.
• Exploring Export Markets: RBL is focusing on increasing exports to regions with high biofuel demand.

Risk Factors:

• Regulatory Risks: Any changes in government policies or regulatory non-compliance may adversely affect operations.
• Raw Material Supply Risks: Fluctuations in the availability or cost of raw materials could disrupt production.
• Competitive Landscape: Increasing competition in the biofuel sector could pressure margins and market share.

The Upcoming IPOs in this week and coming weeks are Ganesh Infraworld, Suraksha Diagnostic, Property Share REIT, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO is Agarwal Toughened, Apex Ecotech, Abha Power and Steel and Rajputana Biodiesel.

The Closed IPOs are  Rajesh Power Services, C2C Advanced System, Enviro Infra Engineers, Lomosaic India, NTPC Green Energy.