Rajputana Industries, one of the few companies producing value-added products using recycled non-ferrous scrap, plans to tap the initial public offering (IPO) market to raise ₹23.88 crore by listing on NSE Emerge.
The company will offer 62.85 lakh equity shares in the price band of ₹36-38 a share. The issue opens for subscription on July 30.
The net proceeds from the issue will be used to fund working capital requirements and source grid solar power generating system.
The company is a subsidiary of Shera Energy, which got listed on NSE Emerge last year.
New plant
The company will get into cable manufacturing for construction, with a new plant at Sikar in Rajasthan at an investment of ₹6 crore. The project is expected to be operational by September with a production capacity of 13,000 Kw.
In FY24, the company registered net profit of ₹5 crore on a revenue of ₹327 crore and the EBITDA was ₹18 crore.
Sheikh Naseem, Director, Rajputana Industries, said the company has well laid-out supply chain for sourcing scrap, which is the key raw material.
The company has a debt of ₹29 crore and has no intention of repaying the fund raised, as the borrowing cost of 8-9 per cent is much competitive, he added.
Parent company
The parent company Shera Energy has set up a subsidiary in Zambia and plans to invest ₹10 crore to produce copper cathode and copper bristle. The company will also export copper cathode to its subsidiary Rajputana duty-free availing the least developed country status given to Zambia by the Indian government.