Shares of Rajputana Biodiesel Ltd on Tuesday staged a stellar market debut at stock exchanges. The stock got listed at a premium of 90 per cent at Rs 247 on NSE's SME platform, Emerge, against its issue price of Rs 130. It further gained momentum to hit a 5 per cent upper price band of Rs 259.35. At this price, the scrip delivered mulitbagger returns to investors by rallying 99.5 per cent in its maiden trading session.
Earlier in July this year, bourses decided to put an overall cap of up to 90 per cent over the issue price for SME IPOs during the special pre-open session. Eventually, the counter can trade at the 5 per cent upper or lower circuit levels in the trade-to-trade segment.
"The price band cap is (+)(-) 5 per cent for the first 10 sessions when the stock trades in trade-to-trade segment. Thereafter the circuit band is fixed by the exchange which could be 10 per cent to 20 per cent," market expert Arun Kejriwal stated.
Around 3.66 lakh shares were last seen changing hands on NSE at a combined value of Rs 9.32 crore. The firm's market capitalisation (m-cap) came at Rs 182.41 crore. Last checked, there were 20,00,000 buy orders against sell orders of nil shares.
Rajputana Biodiesel specialises in manufacturing and supplying biofuels and by-products like glycerine and fatty acids, catering to diverse industry needs. It operates a 4,000 square meter facility in Phulera, Rajasthan. The company has an approved production capacity of 30 KLPD and an installed capacity of 24 KLPD.
The IPO, which ran between November 26 and November 28, raised a total of Rs 24.70 crore. It was entirely a fresh share sale of 19,00,000 equity shares. At the upper band, the issue was valued at a PE ratio of 20.21 times based on an FY24 EPS of Rs 6.43. Based on annualised FY25 earnings, the IPO was valued at 11.74 times.
The overall issue was subscribed 718.81 times during the three-day bidding process. As per the subscription figures, the net issue saw bids worth Rs 12,940 crore.
The portion for non-institutional investors (NIIs) was booked 1,345.95 times, retail portion 746.57 times, while the portions reserved for qualified-institutional bidders (QIBs) fetched 177.38 times bids.