About Rajputana Biodiesel
Founded in 2016 and headquartered in Jaipur, Rajasthan, Rajputana Biodiesel Limited is a leading player in India’s biofuel industry. The company specializes in producing biofuels and their by-products, including glycerine and fatty acids. Rajputana Biodiesel is committed to reducing carbon emissions and supporting energy security, aligning perfectly with the global push for renewable energy solutions.
Financial Highlights
Understanding a company’s financial health is crucial before investing in its IPO. Here are the key financial metrics for Q2 FY2024:
- Revenue Growth: The company achieved ₹15.5 crore in revenue, marking an 18% increase from ₹13.1 crore in Q2 FY2023.
- Net Profit: Rajputana Biodiesel reported a net profit of ₹2.2 crore, a significant 46% jump from ₹1.5 crore in the previous year.
- Total Assets: As of September 2024, the company’s total assets stood at ₹75 crore, reflecting robust growth due to expansions.
- Equity: Shareholder equity reached ₹30 crore, providing a strong base for future development.
Key Financial Ratios
- Net Profit Margin: A solid 14.2%, highlighting efficient operations.
- Return on Equity (ROE): At 7.3%, this indicates effective utilization of equity to generate returns.
IPO Proceeds: The funds raised will be used to enhance manufacturing capacity, meet working capital needs, and support general corporate objectives, positioning the company for long-term growth.
Why Rajputana Biodiesel Is Positioned for Growth
The biofuel sector is thriving, driven by the global focus on renewable energy. India’s government initiatives to promote clean energy and reduce dependency on fossil fuels create an excellent growth environment for Rajputana Biodiesel.
The company plans to expand its manufacturing facilities and adopt cutting-edge technologies to stay ahead in the competitive market. With a strong focus on sustainability and innovation, Rajputana Biodiesel is set to capture a larger share of the biofuel market in the coming years.
Rajputana Biodiesel SME IPO Details
Here’s everything investors need to know about this exciting IPO:
- Issue Size: Fresh issue of 19 lakh shares, aiming to raise ₹24.70 crore.
- Price Band: ₹125–₹130 per share.
- Subscription Period: Open from November 26, 2024, to November 28, 2024.
- Listing Date: Expected on December 3, 2024, on the NSE SME platform.
Lot Size: Minimum subscription of 1,000 shares, requiring an investment of ₹1.30 lakh for retail investors.
Pros and Cons of Investing
Why Consider Rajputana Biodiesel IPO?
- Sustainability-Focused Business: Aligns with the global transition to renewable energy.
- Strong Financial Performance: Significant revenue and profit growth reflect a stable and efficient operation.
- Favourable Market Environment: Rising demand for biofuels and supportive policies create a conducive growth landscape.
Risks to Consider
- Market Volatility: The stock market, especially for new IPOs, can be unpredictable.
- Intense Competition: The biofuel industry is competitive, requiring constant innovation to maintain market share.
Conclusion: Should You Invest in Rajputana Biodiesel IPO?
The Rajputana Biodiesel SME IPO offers a compelling opportunity for investors interested in the renewable energy sector. Its strong financial performance, sustainability-driven approach, and promising growth potential make it an attractive investment. However, as with any IPO, there are risks to consider, including market volatility and competition. Make sure to assess your financial goals and risk tolerance before investing.
