PS Raj Steels Limited debuted on the NSE

PS Raj Steels Limited debuted on the NSE Emerge at Rs 145, against the fixed price band of Rs 140. Last week, the IPO received an overwhelming response from the investors as the Qualified Institutional Buyer (QIB) portion of the issue was subscribed 1.21 times, the NII quota was subscribed 21.39 times, the employee portion was subscribed 1.2 times and the Retail Individual Investors (RII) quota was subscribed 9.82 times, bringing the overall subscription to 9.82 times till the final day of bidding on 14 February 2025, garnering bids worth over Rs 185 crores.

The IPO comprised a fresh issue of 20.20 Lakh Equity Shares with a face value of Rs 10 through the book-building route. Khambatta Securities Limited is the sole book-running lead manager responsible for the issue, while Bigshare Services Private Limited is the Registrar.

The anchor book of the IPO was subscribed to by a group of high-profile investors, including Vikasa India EIF I Fund – Share Class P, Rajasthan Global Securities Private Limited, Smart Horizon Opportunity Fund, Kingsman Wealth Fund PCC KIF – II, and Zeta Global Funds (OEIC) PCC Limited -Zeta Series B Fund PC.

The company has allotted 5.69 Lakh equity shares for Anchor investors, 1.01 Lakh equity shares for market makers, 3.8 Lakh equity shares allocated for QIBs, 2.85 Lakh equity shares for NIIs, 20,000 shares for the employee portion and the Retail (RII) portion accounts for 6.65 Lakh equity shares.

The Hisar-headquartered company aims to raise Rs 28.28 crore from the issue and intends to utilise Rs 26.50 crore of the total IPO proceeds towards working capital requirement, and the remaining capital will be used for issue-related expenses.

PSSR offers a range of products, including Outer Diameter (OD) Pipes, Nominal Bore (NB) Pipes, Section pipes and Slotted pipes. It offers a wide array of over 250 standard sizes and provides customised solutions tailored to customer preferences. In addition to manufacturing pipes, the company's revenue comes from trading in stainless-steel coils & strips, sheets & plates, and bars.

The company's products serve various sectors, including railways, furniture, households, gate railing, door frames, rice plants, sugar mills, food processing and heat exchangers, etc.

PS Raj Steels operates a manufacturing unit with an installation capacity of 13,460 metric tons per annum, spread over 3 acres in Hisar, Haryana. It supplies finished goods under the brand name "PSSR" in 18 states across India through a strong network of 77 dealers.

PSSR sources raw materials primarily from Jindal Stainless Limited, India's largest stainless steel producer. It has maintained a strong relationship with JSL for over 12 years, supported by a Memorandum of Understanding (MOU). It ensures a continuous supply of raw materials, constituting approximately 95 per cent of the company's requirements. 

The Promoters, Raj Kumar Gupta, Deepak Kumar, Vishal Gupta, Gaurav Gupta and Nikita Gupta, are qualified professionals with an individual cumulative experience of more than 5 decades in the Steel Pipes & Tubes industry and have been instrumental in driving the company's growth since the inception of the business.