Rajputana Biodiesel is preparing to launch its initial public offering (IPO) from November 26 to November 28, 2024, with a price band set between ₹125 and ₹130 per share. The company specializes in the production and supply of biodiesel and its by-products, including glycerine and fatty acids, from its manufacturing facility in Phulera, Rajasthan. With an approved production capacity of 30 kiloliters per day, Rajputana Biodiesel aims to capitalize on the growing demand for sustainable biofuels. The IPO seeks to raise approximately ₹24.70 crores to fund capital expenditures and enhance working capital.
₹130
₹130
₹247
Expert Opinions
Market sentiment for the Rajputana Biodiesel IPO is positive, driven by increasing investor interest in sustainable energy solutions. Company strengths include a robust manufacturing facility in Rajasthan with an approved production capacity of 30 kiloliters per day, alongside a diverse product range that includes biodiesel, glycerine, and fatty acids. The company reported significant revenue growth, with earnings rising from ₹23.54 crores in 2023 to ₹53.68 crores in 2024.
However, potential risks and challenges include fluctuations in raw material prices and competition within the biodiesel market. The valuation analysis places the price band at ₹125-130 per share, reflecting a reasonable entry point given its growth trajectory and market potential. From a long-term investment perspective, Rajputana Biodiesel is well-positioned to benefit from the global shift towards renewable energy.
Investor Considerations
Investors considering the Rajputana Biodiesel IPO should evaluate several critical factors. Company performance and fundamentals show significant growth, with revenue increasing from ₹23.54 crores in 2023 to ₹53.68 crores in 2024, alongside a profit rise from ₹1.69 crores to ₹4.52 crores, indicating strong operational efficiency. The sector outlook is favorable, driven by rising demand for sustainable biofuels as governments and industries focus on reducing carbon footprints.
The IPO valuation, set between ₹125 and ₹130 per share, appears reasonable given the company’s growth trajectory and market potential. Growth prospects are promising, with plans to expand production capacity and diversify product offerings in the biodiesel sector. However, investors should be mindful of risk factors, such as fluctuations in raw material prices and competition from established players. A long-term investment horizon is advisable, as Rajputana Biodiesel is well-positioned to benefit from the increasing emphasis on renewable energy solutions, making it an attractive investment opportunity.
| Date | GMP | Trend |
|---|---|---|
| 02 Dec 2024 15.30 | ₹130 | Up |
| 01 Dec 2024 11.20 | ₹120 | --- |
| 30 Nov 2024 13.08 | ₹120 | Up |
| 29 Nov 2024 10.57 | ₹100 | --- |
| 28 Nov 2024 10.39 | ₹100 | --- |
| 27 Nov 2024 15.56 | ₹100 | Up |
| 26 Nov 2024 10.55 | ₹80 | --- |
| 25 Nov 2024 13.25 | ₹80 | Up |
| 23 Nov 2024 11.24 | ₹65 | --- |
| 22 Nov 2024 18.00 | ₹65 | --- |
| 21 Nov 2024 11.35 | ₹65 | --- |
FAQs
The Grey Market Premium showed strong accuracy in predicting Rajputana Biodiesel’s listing performance. The GMP of ₹130 predicted a substantial premium of 100% over the issue price, while the stock delivered a similar gain of 90%. With a minimal prediction error of 5%, the GMP effectively captured both the direction and magnitude of the listing gains, proving to be a highly reliable indicator in this case.
Rajputana Biodiesel IPO Current GMP is ₹130.
Rajputana Biodiesel IPO Expected Returns is 100%.
Rajputana Biodiesel IPO estimated listing price is ₹260.