Upcoming IPO: Jaipur-Based Jajoo Rashmi Refractories Files DRHP With SEBI For Rs 150 Crore IPO; Details

Jaipur-based Jajoo Rashmi Refractories, a manufacturer and exporter of ferro alloys critical for steel production, is gearing up to go public with its Initial Public Offering (IPO). The company has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) and plans to raise Rs 150 crore through the issue.

IPO Structure & Fund Allocation

The IPO comprises a fresh issue of shares with a face value of Rs 10, with no offer-for-sale (OFS) component. The total funds raised will be allocated as Rs 61.83 crore to establish new manufacturing facilities for ferro alloys in Bokaro, Jharkhand, Rs 47.67 crore to meet working capital requirements, and the remaining funds for general corporate purposes.

The issue will follow a book-building process, allocating 50% to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 35% to Retail Investors.

About Jajoo Rashmi Refractories

Founded in 1995, Jajoo Rashmi Refractories is the flagship company of the Jajoo Rashmi Group. It initially specialised in manufacturing refractory products for the steel industry but has since expanded into producing ferro alloys, such as ferro silicon, ferro manganese, and silico manganese.

The company has built an international presence, with exports accounting for 91% of its total revenue. Its operations span 29 countries.

Jajoo Rashmi Refractories operates three manufacturing facilities located in Jaipur (Rajasthan), Kalyaneshwari (West Bengal), and Kandla Special Economic Zone (SEZ) (Gujarat) - an export-oriented facility.

Together, these units boast an installed production capacity of 78,000 Metric Tonnes Per Annum (MTPA). To further boost its ferro alloy production, the company is establishing a new facility in Bokaro, Jharkhand, using a significant portion of the IPO proceeds.

Financial Performance

The company has showcased robust financial growth in recent years. Revenue was up 43.12% to Rs 334.03 crore in FY24, compared to Rs 233.39 crore in FY22. Profit After Tax (PAT) jumped 176.81% to Rs 24.28 crore in FY24, from Rs 8.77 crore in FY22. For the quarter ending June 30, 2024, the company reported revenue of Rs 117.45 crore and PAT of Rs 6.39 crore.

Quality & Automation

The company's Kalyaneshwari, West Bengal plant incorporates automation to ensure consistency in production. Each facility is supported by dedicated quality control teams, with additional third-party testing conducted before dispatching products.

IPO Management & Listing Plans

The IPO is being managed by Unistone Capital Private, the sole book-running lead manager. Bigshare Services Private is the registrar for the issue. Post-listing, the company's equity shares will be available for trading on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).