PS Raj Steels Limited is coming up with an IPO consisting of a fresh issue of  20,20,000 equity shares with a face value of Rs. 10  per share. The company aims to fund the working capital requirements from the net proceeds of the Issue.

PS Raj Steels IPO – Important Dates

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PS Raj Steels Limited IPO – Company Profile

PSSR Group is one of India’s most trusted names in the Stainless Steel Pipes & Tubes Industry.  The Group was established in the year 1996 and P S Raj Steels Limited (Formerly Known As P S Raj Steels Private Limited) was incorporated in the year 2004 with a vision to manufacture and provide Stainless Steel Tubular solutions to the industry.

P S Raj Steels Limited is among the fastest-growing manufacturers and suppliers of stainless steel pipes and tubes in India. The company specialises in producing a wide range of product sizes, making it one of the few manufacturers in India with such extensive offerings.

They are equipped with the latest and advanced machinery and equipment that helps them in meeting the bulk requirements of their clients. All equipments are set up as per International Standards and Industrial requirements.

PS Raj Steels Ltd IPO Fundamental Analysis

PS Raj Steels Limited’s financial analysis reveals a growing performance. Revenue has increased, with increasing profitability and EPS, along with a decline in total assets and equity and improved inventory turnover, indicating potential operational efficiency. 

• Revenue Trend: The revenue increased from ₹22,542.65 lakhs in March 2023 to ₹29,774.93 lakhs in March 2024. 
• Equity and Liabilities: Equities as of March 2024 have shown a decline when compared to March 2023, reflecting declining growth and expansion. However, the debt-equity ratio has decreased, indicating lesser reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹365.19 lakhs in March 2023 to ₹636.29 lakhs by March 2024. 
• Earnings per Share (EPS): The basic EPS has increased from ₹6.62 in March 2023 to ₹11.53 by March 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has increased from 15.03% to 20.79%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have decreased, suggesting a decline in potential business growth. 

• Inventory Turnover Ratio: There’s an increase in the Inventory Turnover Ratio, which might suggest faster sales or efficient inventory management.

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PS Raj Steels IPO Financial Analysis

PS Raj Steels Limited IPO Peer Comparison

PS Raj Steels Limited shows a steady performance. Remi Edelstahl Tubular has the highest PE when compared to others, Venus Pipes & Tubes Limited has the highest revenue, RONW, NAV, and EPS among its peers, and  Suraj Limited shows stable growth and consistent results.

PS Raj Steels Ltd IPO Objective

The main and only objective of PS Raj Steels Limited’s IPO is to meet the working capital requirements of the company from the net proceeds of the Issue.

1. To meet the working capital requirements of the Company: The Company plans to meet the majority of its working capital needs through internal accruals, net worth, and financing from various banks, financial institutions, and unsecured loans. They intend to allocate ₹ 2,350.00 lakhs from the net proceeds to support the working capital requirements in the upcoming period.

PS Raj Steels IPO Risks And Challenges

PS Raj Steels Limited’s risks include a decline in sales, negative cash flows, fluctuations in prices of raw materials, and lack of long-term customer agreements, which could adversely impact operations, profitability, and business performance.

• The Company’s sale from trading is expected to decrease in F.Y. 2025 due to the loss of one of the key customers.

• The Company has reported certain negative cash flows from its investing activities and financing activities. Sustained negative cash flow could impact their growth and business.

• The cost of production is exposed to fluctuations in the prices of raw materials particularly HR Coil and CR Coil. Fluctuations in the prices of these raw materials can have a significant impact on their production costs and overall financial performance.

• They do not have long-term agreements with any of their customers, the loss of one or more of them or a reduction in their demand for the products could adversely affect the business, results of operations, financial condition and cash flows.

PS Raj Steels Ltd IPO – Industry & Market Potential

Since 2021, India has become the global leader in steel demand growth. The country’s steel consumption is expected to increase by 8% annually over the next two years, driven by strong infrastructure investments and expansion in steel-consuming sectors. By 2025, India’s steel demand is projected to rise by over 70 million tonnes compared to 2020.

The Indian steel industry consists of primary, secondary, and large producers. India is the second-largest crude steel producer globally, with 121.29 MT of finished steel and 125.32 MT of crude steel produced in FY23. In FY24, steel production is estimated to reach 123–127 MT, marking a 4-7% year-on-year increase.

By 2030–31, India’s annual steel production is projected to exceed 300 MT. With a 90% conversion ratio, crude steel output is expected to reach 255 MT at 85% capacity, resulting in 230 MT of finished steel. Net exports of 24 MT will push steel production beyond domestic consumption of 206 MT, raising per-capita steel consumption to 160 kg.

PS Raj Steels Limited IPO – Type of Offer

PS Raj Steels Limited plans a fresh issue of 20,20,000 equity shares with a face value of Rs.10 per share, seeking the amount to meet the working capital requirements.

1. Fresh Issue: The company will issue 20,20,000 new shares to raise capital. The company intends to utilise the proceeds from the fresh issue to meet the working capital requirements.

PS Raj Steels IPO Offer Size

The offer size of PS Raj Steels Limited consists of a fresh issue of 20,20,000 shares with a face value of Rs.10 per share. The company aims to utlize the amount of net proceeds to meet the working capital requirements of the company.

PS Raj Steels Limited IPO Allotment Structure

PS Raj Steels Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

Read more about PS Raj Steels IPO Day 1 Subscription Status

How to apply for the PS Raj Steels IPO?

To apply for the PS Raj Steels IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the PS Raj Steels Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the PS Raj Steels IPO Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

Read more about PS Raj Steels IPO Day 2 Subscription Status

How do you check PS Raj Steels IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the PS Raj Steels Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the PS Raj Steels Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the PS Raj Steels Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the PS Raj Steels Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Read more about PS Raj Steels IPO Allotment Status

PS Raj Steels Ltd IPO Offer Registrar

The registrar for the PS Raj Steels Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Bigshare Services Private Limited

S6-2, 6th Pinnacle Business Park,

Mahakali Caves Road,

Next to Ahura Centre, Andheri East,

Mumbai–400093, Maharashtra, India.

Telephone: +91 22 6263 8200

E-mail Id: [email protected]

Website: www.bigshareonline.com

Read more about PS Raj Steels IPO Day 3 Subscription Status

PS Raj Steels IPO – FAQs

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.