Rajputana Biodiesel Makes Strong Debut On NSE SME Platform With 90 pc Premium

New Delhi, Dec 3 (KNN) Rajputana Biodiesel experienced a remarkable initial public offering (IPO) on the National Stock Exchange (NSE) Small and Medium Enterprises (SME) platform on Tuesday, December 3, achieving a stellar market entry with its share price listing at a notable 90 percent premium. 

The stock opened at Rs 247, significantly higher than its issue price of Rs 130, and quickly advanced to its upper circuit at Rs 259.35.

The public issue, which was open for subscription from November 26 to November 28, demonstrated extraordinary investor interest, securing an unprecedented overall subscription of 719 times. 

The retail segment was particularly compelling, attracting 747 times subscription, while the non-institutional segment saw an even more robust 1,346 times subscription.

The IPO structure comprised 3.45 lakh shares allocated to qualified institutional buyers, 2.70 lakh shares for non-institutional investors, and 6.29 lakh shares dedicated to retail investors. 

The price band was set between Rs 123 and Rs 130 per equity share, with the allotment finalised on November 29.

Strategic financial planning underpins the company's capital raising objectives. 

A substantial portion of the net proceeds will be channeled as a loan to its subsidiary, Nirvaanraj Energy Private Limited (NEPL), to support capital expenditure for manufacturing facility expansion. 

The remaining funds are earmarked for working capital requirements and general corporate purposes.

Specialising in biofuels production, Rajputana Biodiesel manufactures and supplies biofuels alongside by-products such as glycerine and fatty acids. 

The company's current installed production capacity stands at 30 kilolitres per day, as detailed in its Draft Red Herring Prospectus (DRHP).

(KNN Bureau)