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PS Raj Steels Limited IPO
P S Raj Steels Ltd
₹1,32,000 /1000 sharesMinimum Investment
PS Raj Steels Limited IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| -- | ₹140.00 | ₹145.00 | ₹5.00 (3.57%) |
PS Raj Steels Limited IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 12 Feb ‘25 - 14 Feb ‘25 | ₹1,32,000 | 1,000 | ₹132 - ₹140 |
| Issue Size | IPO Doc |
|---|---|
| 28.28Cr | RHP PDF |
Subscription rate
As of 14 Feb'25, 04:00 PM
| Qualified Institutional Buyers | 1.21x |
| Non-Institutional Investor | 14.42x |
| Retail Individual Investor | 8.35x |
| Employees | 1.20x |
| Total | 7.00x |
About PS Raj Steels Limited
Founded in
2004
Managing director
Mr. Deepak Kumar
Parent organisation
P S Raj Steels Ltd
Strengths & Financials of PS Raj Steels Limited
Strengths
Risks
The company is ISO 9001:2015 certified for quality management systems, ISO 14001:2015 certified for environmental management systems and ISO 45001:2018 certified for occupational health and safety (OH&S) management systems.
The company states that it has a cost-effective supply chain due to their proximity and partnership with Jindal Stainless Limited (“JSL”). JSL is located in close proximity. This decreases transportation costs and increases profitability.
The company claims to have a strong distribution network, spread over 18 states of India. They also have direct engagement with Original Equipment Manufacturers (OEMs).
The company also claims to be technologically updated and its manufacturing unit is well-equipped with machineries.
The company has seen a consistent increase in the revenue from operations and profit after tax (PAT) over the years. Revenue from operations increased from Rs 179.72 crore in FY22 to Rs 225.43 crore in FY23 to Rs 297.75 crore in FY24. PAT increased from Rs 3.57 crore in FY22 to Rs 3.65 crore in FY23 to Rs 6.36 crore in FY24.
The company earns a part of its revenue from the Related Parties/ Group Entities. They contributed Rs 30.09 crore (21.63%) for the period ending September 30, 2024 and Rs 70.32 crore (23.62%), Rs 44.31 crore (19.66%) and Rs 20.25 crore (11.27%) to the revenue from operations in FY24, FY23, and FY22 respectively. The loss of any of the related parties or group entities could adversely affect the company’s operations and finances.
PS Raj Steels expects a decline in trading sales in FY 2025 due to reduced sales to a group entity. The sales decreased from Rs 49.38 crore (55.70%) in FY24 to Rs 13.85 crore (39.18%) for the period ending September 30, 2024. This decline is primarily because Steelmint Industries Private Limited, a related party, has begun sourcing raw materials from independent suppliers. As a result, sales to Steelmint Industries Private Limited are expected to continue decreasing in FY 2024-25. The company cannot guarantee consistent growth in trading sales, as its focus has shifted to selling manufactured products.
A major portion of the company's business is concentrated in 4 states, namely Uttar Pradesh, Haryana, Delhi and Madhya Pradesh. Out of these 4 states, Uttar Pradesh contributed the most. The state’s contributions were Rs 51.24 crore (36.84%) for the period ending September 30, 2024 and Rs 99.04 crore (33.26%), Rs 78.33 crore (34.75%) and Rs 72.11 crore (40.13%) to the revenue from operations in FY24, FY23, and FY22 respectively. Any adverse developments in these locations could negatively impact the company’s revenue generation capabilities and harm its financial stability.
The company sources approximately 95% of its raw material from Jindal Stainless Limited (JSL), making it vulnerable to disruptions in JSL's supply chain. Any issues with JSL's operations, such as delays, strikes, or financial difficulties, could negatively impact P S Raj Steels business and financial condition.
The company is dependent on a few customers for its revenue and does not have any long-term agreements with them. These top 10 customers contributed Rs 84.78 crore (60.94%) for the period ending September 30, 2024 and Rs 169.74 crore (57.01%), Rs 124.06 crore (55.04%) and Rs 82.99 crore (46.18%) to the revenue from operations in FY24, FY23, and FY22 respectively. Therefore, any loss of these major clients, a failure to retain them or a decrease in business from them could adversely affect the company’s operations and finances.
The company, its promoters and directors, and group entities are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
As of January 31, 2025, the company’s total debt stood at Rs 16.82 crore. Any inability to service or repay these loans could harm the company’s financial position.
PS Raj Steels Limited Financials
*All values are in Rs. Cr
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Application Details of PS Raj Steels Limited IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹132 - 140 | ₹2 - 5 Lakh |
| Employee | ₹132 - 140 | ₹2 - 5 Lakh |
| High Networth Individual | ₹132 - 140 | ₹2 - 5 Lakh |
For PS Raj Steels Limited IPO, eligible investors can apply as Regular & Employee.