Rajputana Stainless IPO 2026 | Should You Invest?

A stainless steel manufacturer is heading to the markets with a ₹255 crore IPO. But is Rajputana Stainless worth your money? Here’s a breakdown of its business model, numbers, valuation and risks before you decide.

India’s stainless steel demand is steadily rising, driven by infrastructure, construction, manufacturing, and urbanization.

Modern infrastructure simply cannot exist without it.

And companies positioned inside this supply chain are now tapping the capital markets.

One such company is Rajputana Stainless Limited, which is coming out with its IPO.

It is a ₹255 crore IPO at a price band of ₹116-₹122 per share. The IPO consists of a fresh issue of ₹178.73 crore and an offer for sale (OFS) of ₹76.25 crore, which is entirely for the promoter, Shankarlal Deepchand Mehta.

The company operates in the stainless steel processing segment, supplying products used across multiple industrial and infrastructure applications.

But before looking at the numbers or the valuation, the real question investors should ask is simple: What exactly does Rajputana Stainless do, and where does it sit in the stainless steel value chain?

Apply Now

India’s stainless steel demand is closely linked to growth in infrastructure, engineering, manufacturing, and consumer goods, rising alongside industrial and construction activity.

With over three decades of operations, Rajputana Stainless manufactures long and flat stainless steel products such as billets, forging ingots, black bars, bright bars, flats, and pattis across 80+ grades.
Rajputana operates an integrated manufacturing facility in Panchmahal, Gujarat. As of September 2025, the capacity utilisation remained strong at ~99.9% for melting and ~99.9% for rolling in FY25, while bright bar utilisation stood at ~32.5%, alongside supporting heat treatment and gas generation infrastructure. 

It generates revenue not only from manufacturing and supplying stainless steel products but also from the sale of consumables, scrap, traded goods, and job work services. As of September 30, 2025, the company served 220 manufacturers and 46 traders, compared to 225 manufacturers and 145 traders in FY25.
 

While most revenue comes from India, the company also exports to Turkey, UAE, Poland, Portugal, the US, South Africa, South Korea, the Czech Republic, and Kuwait, indicating participation in global stainless steel supply chains.

Rajputana serves industrial customers such as Venus Pipes & Tubes, Hindustan Inox, Aamor Inox, Maximum Tubes Company, and Suraj Limited.

Here are the key details investors should know:

• IPO Size: ₹255 crore
• Price Band: ₹116 - ₹122 per share
• IPO Dates: 9 - 11 March 2026
• IPO Type: Fresh Issue + OFS
• Minimum Investment: ₹13,420 (110 shares - lot size)
• Listing Date: 16 March 2026
• Proposed Listing: BSE & NSE
• Lead Manager: Nirbhay Capital Services Pvt. Ltd.

Rajputana Stainless’ ₹255 crore IPO comprises ₹179 crore (70%) fresh issue and ₹76 crore (30%) Offer for Sale. This means most of the proceeds will go to the company for expansion and balance sheet strengthening, while the OFS proceeds will go to the selling promoter.

As per the company’s RHP, the fresh issue proceeds will be used for:

• Capital expenditure for expansion - Setting up a stainless steel seamless pipes manufacturing facility at the Panchmahal plant. Estimated project cost is around ~₹18.6 crore.
• Repayment / prepayment of borrowings - Up to ₹98 crore will be used to repay loans from lenders such as IDBI Bank, State Bank of India, Axis Finance, Bajaj Finance, etc.
• General corporate purposes - Remaining proceeds for operational flexibility and corporate needs.

Rajputana Stainless has shown steady profitability growth with improving operating margins, although revenue growth has remained relatively modest over the past few years. Revenue from operations increased slightly to ₹932.16 crore in FY25, compared to ₹909.81 crore in FY24, reflecting a 2.5% YoY growth.

Profitability, however, has improved more meaningfully. Profit after tax (PAT) rose to ₹39.85 crore in FY25, up from ₹31.63 crore in FY24, translating into a 26.0% YoY growth. EBITDA increased to ₹73.79 crore in FY25, compared to ₹59.41 crore in FY24, representing 24.2% YoY growth. EBITDA margins expanded from 4.63% in FY23 to 6.53% in FY24 and further to 7.92% in FY25, indicating gradual margin improvement.

The balance sheet has also strengthened over time. Net worth increased to ₹151.95 crore in FY25, growing 35.4% from ₹112.27 crore in FY24. Meanwhile, leverage has moderated, with the debt-to-equity ratio improving to 0.66x in FY25 from 0.98x in FY23.

Rajputana Stainless operates alongside players such as Mukand Ltd, Mangalam Worldwide Ltd, Electrotherm (India) Ltd and Panchmahal Steel Ltd in the stainless steel and specialty steel manufacturing segment.

At the upper price band of ₹122 and FY25 EPS of ₹5.78, the IPO is priced at 21.1x P/E. This places Rajputana Stainless below Mangalam Worldwide (22.6x), Mukand (26.3x) and significantly below Panchmahal Steel (182.2x), while remaining above Electrotherm (3.16x). The industry average P/E stands at ~58.6x, suggesting the IPO is priced at a discount to the broader peer group.

From a revenue multiple perspective, Rajputana trades at 0.90x P/S, compared to 0.65x for Mangalam Worldwide and 0.41x for Mukand, reflecting a moderate premium relative to larger but lower-margin peers.
 

Overall, the IPO valuation appears reasonable on earnings multiples while commanding a premium on book value due to stronger return ratios and profitability. However, given the company’s smaller scale relative to larger steel manufacturers, sustaining margins and scaling operations will be important to justify these valuation multiples over the long term.
 

1. Execution risk on new pipes project: A key part of the IPO strategy is entering the stainless steel seamless pipes segment, a more complex manufacturing process than the company’s existing bar products. Any delays, cost overruns, or difficulty in obtaining customer approvals could impact the expected growth from this expansion.

2. Raw material price volatility: The company relies on stainless steel scrap and alloy metals such as nickel and chromium, whose prices fluctuate globally. Sharp increases in raw material prices could temporarily compress margins if costs cannot be passed on quickly to customers.

3. Customer concentration: A significant portion of revenue comes from a limited number of customers, which increases dependence on maintaining long-term relationships and order volumes from these clients.

4. Single manufacturing location: All production is concentrated at the company’s Kalol, Gujarat facility, exposing operations to potential disruptions from regional events such as power shortages, regulatory changes, or natural disasters.

5. Working capital intensity and leverage: Steel manufacturing requires significant investment in inventory and receivables, which leads to higher working capital requirements and reliance on bank borrowings. Any tightening in credit availability or slower collections could impact liquidity.

6. Competitive industry structure: Rajputana operates in a highly competitive stainless steel market, facing competition from larger domestic manufacturers as well as imported products, which may pressure pricing and margins.

Rajputana Stainless operates in the stainless steel long products segment, a market supported by growth in infrastructure, engineering, automotive components and industrial manufacturing. The company has built a stable presence in stainless steel bars and related products, with revenue of ₹932 crore in FY25 and improving profitability, supported by margin expansion and strong return ratios.

At the upper price band of ₹122, the IPO is valued at around 21x P/E based on FY25 EPS of ₹5.78 and roughly 5.5x P/B. Compared to listed stainless steel peers such as Mukand Ltd, Mangalam Worldwide Ltd and Panchmahal Steel Ltd, the issue appears reasonably priced on earnings multiples, although the premium to book value reflects strong return ratios and improving margins.

However, the investment case depends heavily on the successful execution of the planned seamless pipes expansion, along with managing raw material volatility and maintaining customer relationships in a competitive steel market.

1. What are the IPO dates for the Rajputana Stainless IPO?
Rajputana Stainless IPO opens on March 9, 2026 and closes on March 11, 2026. The shares are expected to be listed on March 16, 2026 on BSE and NSE (SME platform).

2. What is the lot size for retail investors?
The minimum lot size is 110 shares, which translates to a minimum investment of ₹13,420 – ₹14,520 at the price band.

3. Is the Rajputana Stainless IPO a fresh issue or an OFS?
The ₹255 crore IPO comprises ₹179 crore (about 70%) fresh issue and ₹76 crore (about 30%) Offer for Sale (OFS). Fresh issue proceeds will be used for debt repayment, expansion into seamless stainless steel pipes manufacturing and general corporate purposes.
 

4. Should I invest in the Rajputana Stainless IPO?
Investors seeking exposure to the stainless steel manufacturing and industrial metals sector may find the IPO relevant. However, they should be comfortable with risks such as raw material price volatility, customer concentration, working capital intensity and execution risks related to the new seamless pipes project.
 

5. What drives growth for Rajputana Stainless?
Growth will depend on industrial demand for stainless steel products, infrastructure and engineering sector expansion, and the company’s ability to successfully scale its new seamless pipes manufacturing facility while maintaining margins and customer relationships.