Rajputana Stainless IPO opens: Analysts offer mixed views; should you bid?

Rajputana Stainless IPO: Rajputana Stainless, a stainless-steel products manufacturer, is set to launch its initial public offering (IPO) today, March 9, 2026. The company aims to raise ₹255 crore from its maiden public issue, comprising a fresh issue of 14.7 million shares worth up to ₹178.73 crore and offer for sale (OFS) of 6.3 million shares amounting to ₹76.25 crore. Under the OFS, Shankarlal Deepchand Mehta is the only promoter selling shareholder. 

 

Ahead of the issue, Rajputana Stainless withdrew its anchor book later in the day on March 6 after receiving participation from only one institutional investor.

Rajputana Stainless IPO GMP

On Monday, March 9, the unlisted shares of Rajputana Stainless were trading almost flat at ₹124, up ₹2 or 1.6 per cent compared to the issue price of ₹122 per share, according to sources tracking unofficial markets.

 

SBICAP Securities - Subscribe for long-term

SBI Securities said the company’s planned forward integration into stainless-steel seamless pipes is expected to enhance product diversification and strengthen long-term growth visibility. Additionally, the company intends to deploy ₹98 crore from IPO proceeds towards repayment of borrowings, which will materially reduce its Total Debt/Equity from 0.8x to 0.2x (total debt as of Dec’25 stood at ₹141.4 crore), thereby improving balance sheet strength and generating savings in finance costs.

 

At the upper price band of ₹122, the issue is valued at a P/E of 25.6x and EV/Ebitda of 12.6x on a post-issue basis, and given Rajputana Stainless has superior profitability metrics relative to peers, the valuation appears relatively attractive. 

 

"We recommend investors to Subscribe to the issue at the cut-off price for a long-term investment horizon," the brokerage said.  READ | Innovision IPO: Subscription opens March 10; here's all you need to know

Anand Rathi Shares & Stock Brokers - Subscribe

According to analysts at Anand Rathi, Rajputana Stainless Steel, valued at 21x P/E (post issue) on FY25 earnings is valued fairly in relation to its competititors. Considering the company’s consistent track record & superior financial

metrics, the valuation is fully priced in. "Hence, we recommend subscribing to the IPO," the brokerage said.

Swastika Investmart - Avoid

However, Swastika Investmart noted that the company has reported flat revenue growth in recent periods, indicating limited expansion in its top line performance. 

 

Rajputana Stainless operates in a highly competitive and fragmented stainless-steel products industry, which may impact margins and market share, the brokerage said. 

 

"Based on its recent financial performance, Rajputana is priced at a slight discount to peers, making valuation reasonable. The concerns from the DRHP still hold — high contingent liabilities (68 per cent of net worth), rising related-party transactions (28 per cent of revenues in FY25), and flat revenue growth despite rising profits," it added.

 

Considering the valuation and growth outlook, anaysts recommended investors to avoid this IPO for now and wait for better clarity on future performance.

Here are the key details of the Rajputanan Stainless IPO:

The three-day subscription window to bid for the Rajputana Stainless IPO will close on Wednesday, March 11, 2026. The allotment of shares is expected to be finalised on Thursday, March 12, 2026. The successful allottees will receive the company's shares in their respective demat accounts on Friday, March 13, 2026. 

 

Shares of Rajputana Stainless will make their debut on the exchanges, NSE and BSE, tentatively on Monday, March 16, 2026. 

 

The company has set the price band in the range of ₹116 to ₹122, with a lot size of 110 shares. A retail investor would require a minimum investment of ₹13,420 to bid for at least one lot and in multiples thereafter.

 

Kfin Technologies is the registrar. Nirbhay Capital Services is the sole book-running lead manager for the issue.

 

According to the red herring prospectus (RHP), the company plans to use ₹18.57 crore from the net fresh issue proceeds for the expansion of the existing manufacturing facility at Panchmahal district, Gujarat, through forward integration and diversification of product portfolio. Additionally, ₹98 crore will be used for repayment or prepayment of certain borrowings availed by the company. The remaining funds will be used for general corporate purposes. 

 

Disclaimer: The views or investment tips expressed by the brokerages in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.