December 23, 2024
New Delhi, India
IPO Alert
Jaipur-based Jajoo Rashmi Refractories Limited, a leading manufacturer and exporter of ferro alloys essential for steel production, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 21, 2024. The company plans to raise ₹150 crore through a 100% fresh issue IPO, with no offer-for-sale component.
IPO Details and Fund Allocation:
- Total Issue Size: ₹150 crore
- Issue Type: Fresh issue of shares with a face value of ₹10 each
- Fund Utilization:
- ₹61.83 crore for establishing a new ferro alloy manufacturing facility in Bokaro, Jharkhand
- ₹47.67 crore for working capital
- Remaining for general corporate purposes
The IPO will follow a book-building process, allocating 50% of the net offer to Qualified Institutional Buyers (QIB), 15% to Non-Institutional Investors (NII), and 35% to Retail Investors.
Company Overview:
Founded in 1995, Jajoo Rashmi Refractories is the flagship entity of the Jajoo Rashmi Group. The company has evolved from producing refractory products to manufacturing ferro alloys such as ferro silicon, ferro manganese, and silico manganese. With operations across 29 countries, exports constitute 91% of its revenue, demonstrating its robust global presence.
The company operates three manufacturing units located in Jaipur (Rajasthan), Kalyaneshwari (West Bengal), and Kandla SEZ (Gujarat), offering a combined production capacity of 78,000 MTPA. A new facility under construction in Bokaro, Jharkhand, will enhance its ferro alloy production capabilities.
Performance Highlights:
- Revenue Growth: Increased by 43.12% from ₹233.39 crore in FY22 to ₹334.03 crore in FY24.
- Profit Growth: Profit after tax surged 176.81%, reaching ₹24.28 crore in FY24.
- Q1 FY25 Results: Revenue stood at ₹117.45 crore, with a profit after tax of ₹6.39 crore.
Commitment to Quality:
Jajoo Rashmi Refractories prioritizes quality through automated processes at its West Bengal plant and rigorous quality control measures across all facilities. Third-party agencies conduct additional testing to ensure high standards before dispatch.
Key IPO Details:
- Book Running Lead Manager: Unistone Capital Private Limited
- Registrar: Bigshare Services Private Limited
- Listing: NSE and BSE
With its strong financial performance and ambitious expansion plans, Jajoo Rashmi Refractories aims to solidify its position in the global ferro alloys market through this IPO.
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