PS Raj Steels Ltd. is preparing for its initial public offering (IPO), set to open from February 12 to February 14, 2025, with an aim to raise approximately ₹28.28 crores. The IPO will consist of a fresh issue of equity shares priced between ₹132 and ₹140 per share, with a minimum market lot of 1,000 shares. Established in 2004, PS Raj Steels specializes in the manufacturing and supply of stainless steel pipes and tubes, catering to various sectors including railways, furniture, and food processing.
₹00
₹140
₹145.00
Expert Opinions
Market sentiment for the PS Raj Steels IPO is optimistic, driven by the increasing demand for stainless steel products across various sectors, including railways and furniture. Company strengths include a diverse product range with around 250 sizes of stainless steel pipes and tubes, along with a robust manufacturing capacity of 13,460 metric tons per annum, enhancing its competitive edge. Risks and challenges involve fluctuations in raw material prices and potential competition from established players in the steel industry, which could impact profit margins.
Valuation analysis for FY 2024 indicates a return on equity (ROE) of 20.79%, return on capital employed (ROCE) of 20.64%, and return on net worth (RoNW) of 20.79%, reflecting solid financial performance. From a long-term investment perspective, PS Raj Steels is well-positioned to benefit from ongoing infrastructure projects and increased industrial demand.
Investor Considerations
Investors considering the PS Raj Steels IPO should assess several key factors. Company performance and fundamentals indicate a steady growth trajectory, with revenue increasing from ₹225.43 crores in FY2023 to ₹297.75 crores in FY2024, alongside a profit after tax of ₹6.36 crores, showcasing effective management. The sector outlook is positive, driven by rising demand for stainless steel products across various industries, including railways and furniture.
The IPO valuation reveals a price-to-book value of approximately 2.52, a profit after tax (PAT) margin of 2.14, and a debt-to-equity ratio of 0.58, indicating a manageable debt level relative to equity. Growth prospects remain strong as the company plans to expand its manufacturing capacity and product offerings. However, potential risk factors include competition from established players and fluctuations in raw material prices. A long-term investment horizon is advisable as PS Raj Steels aims to capitalize on the growing demand for stainless steel products in India.
| Date | GMP | Trend |
|---|---|---|
| 18 Feb 2025 11.10 | ₹00 | --- |
| 17 Feb 2025 11.13 | ₹00 | --- |
| 15 Feb 2025 11.28 | ₹00 | --- |
| 14 Feb 2025 10.39 | ₹00 | --- |
| 13 Feb 2025 18.14 | ₹00 | --- |
| 11 Feb 2025 11.04 | ₹00 | --- |
| 10 Feb 2025 10.36 | ₹00 | --- |
| 09 Feb 2025 12.32 | ₹00 | --- |
| 08 Feb 2025 20.44 | ₹00 | --- |
| 07 Feb 2025 20.05 | ₹00 | --- |
| 06 Feb 2025 20.00 | ₹00 | --- |
| 05 Feb 2025 13.46 | ₹00 | --- |
FAQs
The Grey Market Premium showed reasonable accuracy in predicting PS Raj Steels’ listing performance. While the GMP of ₹0 suggested a flat listing at the issue price, the stock delivered a modest gain of 3.57%. With a small prediction error of 3.57%, the GMP’s indication of weak market enthusiasm was largely accurate, though it slightly underestimated the marginal positive listing gain.
PS Raj Steels IPO Current GMP is ₹00.
PS Raj Steels IPO Expected Returns is 0.00%.
PS Raj Steels IPO estimated listing price is ₹140.