P S Raj Steels Limited, a leading manufacturer of stainless-steel pipes and tubes in India, today announced it has received in-principle approval from NSE Emerge for its Initial Public Offering (IPO) on January 02, 2025. The IPO comprises a fresh issue of 20,20,000 equity shares with a face value of Rs. 10 each through the book-building route. PSSR is currently in the process of filing its Red Herring Prospectus (RHP) with updated information and expects to list on NSE Emerge shortly. Khambatta Securities Limited is the sole Book Running Lead Manager for the IPO, and Bigshare Services Private Limited is the Registrar.
According to DRHP, PSSR intends to utilise ?23.5 crore of the total IPO proceeds towards working capital requirement including margin money and the remaining capital will be used for issue related expenses.
PSSR, headquartered in Hisar, Haryana, is known for its diverse product range, encompassing approximately 250 sizes of stainless-steel pipes and tubes. The production of bigger diameter pipe & special sizes for different original equipment manufacturers is the edge of the company over other industry competitors. The company caters to a wide range of sectors, including railways, furniture, and industrial applications.
The company operates a manufacturing unit with an installation capacity of 13,460 metric tons per annum, which is spread over an area of 3 acres in Hisar, Haryana. It supplies finished goods under the brand name "PSSR" in 19 states across India, including Uttar Pradesh, Haryana, Punjab, Madhya Pradesh, Delhi, Rajasthan and others.
PSSR sources raw materials primarily from Jindal Stainless Limited ("JSL"), one of the largest producers of stainless steel in India. It has maintained a strong relationship with JSL for over 12 years, supported by a Memorandum of Understanding (MOU), ensuring a continuous supply of raw material, which constitutes approximately 95% of the company's requirements.
The company's brand, PSSR, has grown into a highly established brand and serves several customers in various sectors, such as automobile ancillaries, heat exchanger manufacturing, rail coach ancillaries, industrial equipment & hardware manufacturing, decorative furniture and railing manufacturing and general engineering manufacturing.
The Promoters, Mr. Raj Kumar Gupta, Mr. Deepak Kumar, Mr. Vishal Gupta and Mr. Gaurav 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.
P S Raj Steels has recorded ?297.74 crore in revenue from operations with a profit (PAT) of ?6.36 crore in the fiscal year 2024, compared with ?225.42 crore and a profit (PAT) of ?3.65 crore in FY23. |
