Rajputana Biodiesel Share Price: Investors' Money Doubled; Stock Hits Upper Circuit On Listing Day

Shares of Rajputana Biodiesel Ltd. closed on the National Stock Exchange on Tuesday at Rs 259.35 apiece, a 99.5% premium over the issue price of Rs 130.

Rajputana Biodiesel Ltd. listed at Rs 247 apiece on the NSE SME platform Emerge, marking a stellar debut at a premium of 90% over the issue price of Rs 130 at the upper end of the price band.  After listing, the stock rallied 5% to hit the upper circuit limit at Rs 259.35 apiece.  

Investors who were allotted at least a single one lot, or 1,000, shares of the IPO would have made profits of Rs 1,17,000 (Rs 117 x 1,000) compared to their minimum investment of Rs 1,30,000. However, the NSE price cap of 90% on SME IPO debuts meant that the returns were curtailed.

The company will use the proceeds of the IPO to provide a loan to its subsidiary Nirvaanraj Energy Pvt. for capex towards expanding its existing facilities. The company will also use the funds for its working capital requirements and general corporate purposes, it said in the red herring prospectus.

Just before the listing, Rajputana Biodiesel IPO GMP projected a premium of Rs 135, or 103.85%, against the upper band of the issue price. According to InvestorGain, the projected listing price of the initial public offering of Rajputana Biodiesel was coming at Rs 265 apiece on Tuesday.

GMP or grey market price is not an official price quote for the stock and is based on speculation.

The maiden share sale opened for subscription on Nov. 26 and closed on Nov. 28. 

The Rajputana Biodiesel IPO saw a massive response from investors, with the demand being led by non-institutional investors. It became the 10th most subscribed SME IPO of 2024 so far.

The IPO was subscribed 718.81 times over the three-day bidding period. The issue was booked 1,345.96 times in the Non-Institutional Investors’ category. Retail investors subscribed their quota by 746.57 times, while qualified institutional buyers subscribed their quota by 177.38 times.

The IPO was an entirely fresh issue of 19 lakh shares aimed at raising Rs 24.7 crore. 

Rajputana Biodiesel IPO price band was fixed at Rs 123 to Rs 130 per share. 

The IPO share allotment status was finalised on Nov. 29. Maashitla Securities Pvt. was the registrar for the issue. GYR Capital Advisors Pvt. was the book running lead manager of the IPO.

Founded in 2016, Rajputana Biodiesel Ltd.’s speciality is to produce and supply biofuels and their by-products, including glycerine and fatty acids.

The product portfolio of the company includes bio-diesel, crude glycerine, caustic potash flakes, waste sludge, used cooking oil, esterified fatty acid, methanol, citric acid, refined rice oil, crude sunflower oil and sodium methoxide, among others.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.