Solid Debut: Rajputana Biodiesel IPO lists at 90% premium, hits upper limit

Rajputana Biodiesel shares listed at Rs 247 apiece, registering a premium of 90 per cent over its IPO allotment price of Rs 130

Rajputana Biodiesel IPO listing today: Shares of biofuel producer and supplier Rajputana Biodiesel made a bumper debut on the NSE SME today, continuing their upward momentum to hit the upper circuit within less than 5 minutes of listing. The company's stock listed at Rs 247 apiece, a 90 per cent premium over the IPO allotment price of Rs 130.  After listing, the stock gained an additional 5 per cent, surging 99.5 per cent from the issue price to reach the upper circuit of Rs 259.35 apiece on the NSE SME. During the session, nearly 0.27 million shares, valued at Rs 6.93 crore, were traded before trading was halted.

 

Notably, the Securities and Exchange Board of India (Sebi) has capped listing gains for SME stocks at 90 per cent of the issue price.

 

The company's listing performance aligned with expectations in the grey market. Prior to the debut, Rajputana Biodiesel’s unlisted shares were trading at a premium of Rs 135 over the issue price of Rs 130, reflecting a grey market premium (GMP) of 103.85 per cent, according to sources tracking market trends.

 

The IPO, which was priced in the range of Rs 123 to Rs 130 with a lot size of 1,000 shares, was subscribed over 700 times. The Rs 24.70 crore book-built issue consisted entirely of a fresh issue of 19,00,000 shares, each carrying a face value of Rs 10. Additionally, the company raised Rs 6.70 crore from anchor investors during the bidding process that concluded on November 25, 2024.

 

In its Red Herring Prospectus, Rajputana Biodiesel stated that the IPO proceeds will be utilised for multiple purposes. The funds will be used to provide a loan to its subsidiary, Nirvaanraj Energy, for capital expenditure required to expand its manufacturing facility in Meerut, Uttar Pradesh. Additionally, the company plans to allocate funds for its working capital requirements and general corporate purposes.

 

The company has highlighted its flexible manufacturing facility, capable of handling multiple feedstocks based on market requirements. It has an approved production capacity of 30 kiloliters per day (KLPD) and an installed production capacity of 24 KLPD. Its product portfolio includes biodiesel, glycerine, and fatty acids as of the prospectus date.

 

Rajputana Biodiesel operates its manufacturing unit at G24 RIICO Industrial Area, Phulera, Rajasthan, which spans 4,000 square meters.