Rajputana Biodiesel IPO, GMP: Grey market premium swells ahead of stock listing

Rajputana Biodiesel IPO: After a stellar IPO listing by SME Rajesh Power Ltd today, Jaipur-based SME Rajputana Biodiesel Ltd looks set for a solid stock market debut on Tuesday, as its grey market premium (GMP) climbed to Rs 135 apiece from Rs 125 per share in the previous day. This is a 104 per cent premium over the upper limit of the price price Rs 123-130 apiece. 

The listing would come in the wake of recent strong response to SME IPOs, with Rajesh Power Services on Monday etting listed at a premium of 90 per cent, at Rs 636.50 on the BSE SME platform over its issue price of Rs 335. The SME counter later hit a 5 per cent circuit of Rs 668.30, taking listing day gains to 99.49 per cent. 

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 from November 26 to 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 a FY24 EPS of Rs 6.43. Based on annualised FY25 earnings, the IPO was valued at 11.74 times. 

Anchor investors, however, bade for only 5,15,000 equity shares or 27.11 per cent of the issue. The remaining net issue including 13,85,000 equity shares or 72.89 per cent of the issue, worth Rs 18 crore, 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.