Rajputana Stainless IPO Launches with Cautious Investor Sentiment
“Rajputana Stainless Steel, valued at ~21x P/E (post issue) on FY25 earnings (at the upper band) is valued fairly in relation to its competitors,” stated Anand Rathi, highlighting the company’s market positioning as it opens its initial public offering (IPO).
The IPO of Rajputana Stainless Ltd commenced today and will remain open until 11 March 2026. The company is looking to raise ₹255 crore, with ₹76 crore allocated for Offer for Sale (OFS) and ₹179 crore through fresh shares. The price band for the IPO is set between ₹116 to ₹122 per share, with a lot size of 110 shares.
As of 12:42 PM on the first day of bidding, the IPO was subscribed 0.07 times overall, with the retail portion subscribed 0.03 times and the Non-Institutional Investor (NII) segment subscribed 0.20 times. The Grey Market Premium (GMP) for the IPO today stands at ₹2, indicating a cautious approach from investors.
BP Wealth commented on the offering, stating, “Given the company’s improving margins, diversified product portfolio, and potential growth from forward integration initiatives, we recommend a ‘SUBSCRIBE’ rating for this issue with a medium to long-term investment horizon.” This recommendation reflects confidence in the company’s future prospects.
Rajputana Stainless, incorporated in 1991, specializes in manufacturing long and flat stainless steel products utilized across various industries. For the six months ending September FY26, the company reported a revenue of ₹501 crore and a profit after tax of ₹24.4 crore. In FY25, Rajputana Stainless posted a revenue of ₹932 crore and a net profit of ₹40 crore.
Despite the positive outlook, the stainless steel industry remains cyclical and vulnerable to cheaper imports, making earnings sensitive to commodity price swings and demand cycles. This context adds a layer of complexity to the IPO’s reception.
The most likely date for share allocation is 12 March 2026, with the IPO proposed for listing on the BSE and NSE, aiming for a listing date of 16 March 2026. KFin Technologies has been appointed as the official registrar of the public issue.
As the IPO progresses, market participants will be closely monitoring subscription rates and investor sentiment. The cautious approach reflected in the GMP suggests that while there is interest, investors are weighing their options carefully.
Details remain unconfirmed regarding the overall market conditions and investor appetite as the IPO unfolds.
