Ferro alloy and refractory materials maker Jaju Rashmi Refractories plans to raise ₹150 crore through IPO. For this purpose, the company has filed a Draft Red Herring Prospectus (DRHP) with SEBI on 21 December 2024.
IPO details
- Total issue size: ₹150 crore.
- Offer for Sale (OFS): There will be no, only new shares will be issued.
- Merchant banker appointed for IPO: Unistone Capital.
Company Introduction
Jaju Rashmi Refractories operates in Rajasthan, West Bengal and Gujarat through its three manufacturing units.
- Revenue Source:
- More than 90% of the company’s revenue comes from exports and operations in the Middle East, Africa, South-East Asia, South Asia, Western Europe and East Asia.
- Products:
- Ferro alloys: Used as raw material in steel manufacturing industry.
- Refractory Products:
- Silica Ramming Mass.
- Casting Powder.
- Quartz Powder.
- Nozzle filing compound.
Use of IPO funds
- Expansion of Ferro Alloys Production Capacity:
- ₹61.8 crore to set up new manufacturing facilities in Bokaro, Jharkhand.
- Working Capital Funding:
- ₹47.67 crore.
- General Corporate Objectives:
- Utilization of balance.
financial performance
The company’s financial position has strengthened in FY 2024:
| financial year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
|---|---|---|
| FY 2023 | 306.8 | 22.9 |
| FY 2024 | 334.0 | 24.3 |
- Revenue growth: 8.9%.
- Net profit growth: 6%.
Q1 FY 2024 (April-June):
- Revenue: ₹117.4 crore.
- Net profit: ₹6.4 crore.
Why is this IPO important?
- Industry Requirement:
- Increasing demand for steel manufacturing and refractory products.
- Global Market:
- More than 90% of the revenue coming from exports reflects the global competitiveness of the company.
- Use of funds:
- Increasing production capacity and funding working capital will help the company in growth.
