Rajputana Biodiesel lists at 90%, hits upper circuit

Rajputana Biodiesel's initial public offering (IPO) created a buzz as the stock made a stellar debut on the NSE SME platform on Tuesday, December 3. Listed at ₹247, a 90% premium over its issue price of ₹130, the stock quickly hit its upper circuit at ₹259.35. Investors aiming to invest in stocks were thrilled by the impressive listing.

Subscription details and allotment highlights

The ₹25 crore book-built issue opened for subscription on November 26 and closed on November 28, garnering immense interest with an overall subscription of nearly 719 times.

• Retail investors subscribed to the IPO 747 times.
• Non-institutional buyers subscribed 1,346 times.

The IPO offered:

• 3.45 lakh shares to qualified institutional buyers.
• 2.70 lakh shares to non-institutional buyers.
• 6.29 lakh shares to retail investors.

The price band for the issue ranged from ₹123 to ₹130 per equity share. The allotment of shares was completed on November 29.

Utilisation of proceeds

Rajputana Biodiesel plans to utilise the IPO proceeds strategically. Key initiatives include:

• Providing loans to its subsidiary, Nirvaanraj Energy Private Limited (NEPL), to support capital expenditure for facility expansion.
• Meeting working capital requirements.
• Funding general corporate expenses.

Company background and capacity

Rajputana Biodiesel is engaged in the production and supply of biofuels and related by-products, such as glycerine and fatty acids. The company’s daily installed production capacity stands at 30 kilolitres.

Broader stock market performance

On the same day, the NIFTY 50 index showed a positive trend, gaining 0.5% in the morning session. Sector-specific indices also reflected optimism:

• The NIFTY PSU Bank index surged over 2%.
• The NIFTY Bank index climbed by 1%.

This performance indicates continued investor confidence, making it an encouraging environment for those looking to invest in stocks.

Key takeaways

• Rajputana Biodiesel is listed at ₹247, a 90% premium over its issue price.
• The IPO was subscribed nearly 719 times, showcasing strong investor demand.
• Proceeds will support facility expansion, working capital, and corporate needs.
• Positive market sentiment was seen with gains in NIFTY indices.

With its robust debut, Rajputana Biodiesel has gained the spotlight, proving its potential for investors planning to invest in stocks in emerging sectors.