Jaipur-based Jajoo Rashmi Refractories Limited, a manufacturer and exporter specializing in various grades of ferro alloys critical for steel production, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 21, 2024. The company aims to raise ₹150 crore through an Initial Public Offering (IPO).
The IPO consists entirely of a fresh issue of shares with a face value of ₹10, with no offer-for-sale component. Proceeds from the issue will be utilized to fund ₹61.83 crore for the establishment of new manufacturing facilities for ferro alloys in Bokaro, Jharkhand, ₹47.67 crore for working capital requirements, and the remaining for general corporate purposes.
The issue will follow a book-building process, allocating not more than 50% to Qualified Institutional Buyers (QIB), while 15% and 35% of the net offer are reserved for Non-Institutional Investors and Retail Investors, respectively.
Company Overview and Expansion Plans
Founded in 1995, Jajoo Rashmi Refractories is the flagship company of the Jajoo Rashmi Group. Starting as a manufacturer and exporter of refractory products for the global steel industry, the company has expanded its portfolio to include ferro alloys like ferro silicon, ferro manganese, and silico manganese. With operations spanning 29 countries, its exports form a substantial 91% of total revenue, highlighting its strong international presence.
The company operates three manufacturing facilities across Jaipur (Rajasthan), Kalyaneshwari (West Bengal), and Kandla SEZ (Gujarat). Notably, the Kandla unit is export-oriented, leveraging its SEZ location. Together, these units offer an installed production capacity of 78,000 MTPA. Further expansion is underway with the development of a facility in Bokaro, Jharkhand, aimed at boosting ferro alloy production.
Performance highlights
Revenue Growth: The company reported a 43.12% increase in revenue, climbing from ₹233.39 crore in FY22 to ₹334.03 crore in FY24.
Profit Surge: Profit after tax jumped 176.81% in the same period, reaching ₹24.28 crore in FY24.
Q1 FY25 Performance: Revenue from operations for the three months ending June 30, 2024, stood at ₹117.45 crore, with a profit after tax of ₹6.39 crore.
Jajoo Rashmi Refractories emphasizes quality across its operations, incorporating automation in its West Bengal plant to enhance consistency. Each facility is equipped with dedicated quality control teams, and third-party agencies conduct additional testing before product dispatch.
