Rajputana Biodiesel, a Jaipur-based bio-fuel producer, is set to launch its IPO on November 26 to raise Rs 24.7 crore through a fresh issue of 19 lakh equity shares. The price band has been fixed at Rs 123-130 per share, and the issue will close on November 28. The equity shares will be listed on NSE Emerge from December 3.
IPO Details:
- Issue Size: Rs 24.7 crore (19 lakh shares).
- Price Band: Rs 123-130 per share.
- Lot Size: 1,000 shares, requiring a minimum investment of Rs 1.3 lakh.
- Investor Quotas:
- 50% reserved for Qualified Institutional Buyers (QIBs).
- 35% for Retail Investors.
- 15% for Non-Institutional Investors (NIIs).
Use of Proceeds:
- Rs 4.2 crore as a loan to subsidiary Nirvaanraj Energy in Uttar Pradesh for facility expansion.
- Rs 12.2 crore for working capital needs.
- The remainder for general corporate purposes.
Business Overview:
Rajputana Biodiesel operates a manufacturing unit in Rajasthan with an installed capacity of 24 kilo litre per day (klpd). The company produces bio-fuels and by-products like glycerine and fatty acids, targeting renewable energy demand.
Should You Apply?
The IPO’s pricing and allotment structure favor institutional and retail investors, but retail participants should evaluate:
- The company’s potential in the growing renewable energy space.
- Its financial stability and operational efficiency.
- Long-term prospects in bio-fuel production and market demand.
Disclaimer: This information is for educational purposes and does not constitute financial advice. Consult a financial expert before investing.
