Rajputana Biodiesel Lists at ₹247 on NSE SME

Rajputana Biodiesel Limited made a remarkable debut on the NSE SME Emerge platform, listing at ₹247 per share on December 3, 2024. This represents a 90% premium over its IPO issue price of ₹130. The company’s strong listing highlights robust investor confidence in its business model and growth prospects.

The IPO, which opened on November 26, 2024, and closed on November 28, 2024, was oversubscribed 700 times, reflecting an overwhelming response from both retail and institutional investors.

IPO Details

Rajputana Biodiesel’s IPO was a Book Built Issue of ₹24.70 crores, consisting entirely of a fresh issue of 19 lakh shares. The IPO price was set in the range of ₹123 to ₹130 per share, with a lot size of 1,000 shares.

• Retail investors were required to invest a minimum of ₹1,30,000 for one lot.
• HNIs had to invest in at least two lots, amounting to ₹2,60,000.
• The market capitalization of the company at the IPO price of ₹130 per share stood at ₹91.44 crores.

The allotment of shares was finalized on November 29, 2024, and the shares were listed on December 3, 2024.

About Rajputana Biodiesel Limited

Rajputana Biodiesel Limited (RBL) specializes in the manufacturing and supply of biofuels and by-products like glycerine and fatty acids. Established in 2016, the company operates from a 4,000 sq. m. facility in Phulera, Rajasthan, with an approved production capacity of 30 KLPD and an installed capacity of 24 KLPD.

The company’s state-of-the-art manufacturing setup allows it to process multiple feedstocks, making its operations flexible and responsive to market demands.

Industry Overview

The Indian renewable energy sector is witnessing significant growth, driven by the government’s initiatives like:

• 20% ethanol blending in petrol and 5% biodiesel blending in diesel by 2030.
• Programs such as the National Mission on Biodiesel, which aim to promote the adoption of biofuels as a sustainable alternative to fossil fuels.

Rajputana Biodiesel is well-positioned to capitalize on these opportunities by leveraging its strong manufacturing capabilities and strategic partnerships with public sector undertakings (PSUs).

Business Strengths

1. Diversified Revenue Streams: RBL generates revenue not only from biodiesel but also from valuable by-products like glycerine and fatty acids.
2. Owned Manufacturing Facility: The company ensures high production quality with its in-house facility.
3. Flexible Operations: RBL can adapt to market changes by processing various feedstocks.
4. Experienced Team: A skilled workforce supports its efficient operations.
5. PSU Partnerships: Long-term relationships with government bodies enhance revenue stability.

Risks and Challenges

Despite its strengths, the company faces challenges:

• Regulatory Risks: Changes in government policies or delays in approvals could impact operations.
• Raw Material Supply: The availability and pricing of feedstocks are critical to production.
• Competition: The biofuel industry has low entry barriers, leading to increased competition.

Strategic Goals

To strengthen its market position, Rajputana Biodiesel has outlined several key strategies:

1. Boost Domestic Production: Expand capacity and invest in sustainable feedstocks.
2. Energy Efficiency: Implement energy audits and process optimizations to lower costs.
3. Explore Export Markets: Target high-demand regions to diversify revenue streams.

Conclusion

Rajputana Biodiesel’s stellar listing at a 90% premium reflects strong market confidence in its growth story. With its focus on sustainability and advanced manufacturing capabilities, the company is well-equipped to capitalize on the growing demand for biofuels in India and beyond.
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