Rajputana Biodiesel Ltd IPO Review
Rajputana Biodiesel Ltd , a company engaged in manufacturing and supplying biodiesel, glycerine, and fatty acids, has recently announced its Initial Public Offering (IPO). This article delves into the details of the Rajputana Biodiesel Ltd. IPO, exploring the company’s background, financial performance, and the potential benefits and risks associated with investing. We’ll analyze whether Rajputana Biodiesel could be a viable option for investors seeking exposure to the growing biofuel sector.
IPO Full Details
- Issue Type: Fresh Issue
- Issue Size: ₹24.70 crore
- Price Band: ₹123 – ₹130 per share
- Listing: NSE SME
- Tentative Listing Date: December 5, 2024 (Subject to change)
- Issue Open Date: November 26, 2024 (Closed November 28, 2024)
Company Overview
Rajputana Biodiesel Ltd. aims to contribute to India’s energy security and reduce dependence on fossil fuels by manufacturing premium-quality biodiesel. Their facility in Phulera, Rajasthan, has a production capacity of 30 KLPD (Kilolitres Per Day) and produces biodiesel, glycerine, and fatty acids. The company focuses on using adaptable feedstocks to cater to diverse market demands and exploring export opportunities for their biodiesel products.
Company Address Details:
- Registered Office Address: C-94, RIICO Industrial Area, Phulera, Rajasthan – 303317, India.
- Email: accounts@sonigems.com
- Phone: 9509222333
- Website : https://rajputanabiodiesel.com/
Company Financial Data
| Fiscal Year | Revenue (Crore INR) | Net Profit (Crore INR) |
|---|---|---|
| FY2021 | 9.69 | -1.43 |
| FY2022 | 17.07 | 0.20 |
| FY2023 | 23.41 | 1.69 |
| FY2024 (Apr-Jul) | 13.77 | 1.41 |
Key Points:
- Revenue Growth: The company has demonstrated consistent revenue growth over the past few years.
- Profitability Turnaround: While Rajputana Biodiesel Ltd. reported losses in FY2021, they have shown a positive trend in profitability since FY2022.
- Strong Quarterly Performance: The strong performance in the first quarter of FY2024 indicates a potentially positive outlook for the full year.
Should You Invest for Higher Return?
Investing in Rajputana Biodiesel Ltd.’s IPO comes with both potential rewards and risks. Here’s a breakdown of factors to consider:
Reasons to Invest (Potential):
- Growing Biofuel Industry: The global and Indian biofuel markets are projected to experience substantial growth in the coming years, driven by environmental concerns, rising fuel prices, and government initiatives promoting renewable energy sources. Rajputana Biodiesel Ltd. is well-positioned to benefit from this trend.
- Focus on Sustainability: Biodiesel offers a more eco-friendly alternative to fossil fuels, and this focus on sustainability could attract environmentally conscious investors and potential business partners.
- Government Support: The Indian government is actively promoting biofuel production and blending through various policies and incentives. This support could benefit the company’s growth prospects.
Reasons to Consider Before Investing (Potential):
- Limited Financial History: While the financial data provided shows recent growth and profitability improvement, the company’s overall financial history is relatively short. Investors should seek a longer track record for a more comprehensive analysis.
- Small-Scale Operation: Rajputana Biodiesel Ltd. appears to be a relatively small-scale company compared to established players in the biofuel industry. This could limit their market reach, production capacity, and ability to compete with larger companies.
- Borrowing Levels: The company’s debt levels are not readily available in the public domain. High debt levels can pose a financial burden and hinder future growth opportunities.
Conclusion :
The Rajputana Biodiesel Ltd. IPO presents an opportunity to invest in a company operating in a promising and environmentally conscious sector. Their focus on biofuel production, revenue growth, and potential government support are positive factors. However, the limited financial history, small-scale operations, and lack of information on borrowing levels raise significant concerns. Investors should thoroughly research the company, analyze the complete IPO prospectus (once available), and understand the risks involved before making an investment decision.
Disclaimer:
The information provided in this article is for informational purposes only and should not be construed as financial advice.
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