Rajputana Biodiesel Limited, headquartered in Jaipur, specializes in the production and supply of biofuels and their by-products, including
glycerine and fatty acids Rajputana Biodiesel IPO looks to raise 24.70 crores. The issue is entirely a fresh issue of 19 lakh shares.

About Rajputana Biodiesel IPO

• Rajputana Biodiesel Limited, originally incorporated as Rajputana Biodiesel Private Limited on November 10, 2016, became a public limited company on July 8, 2024. The company operates a manufacturing facility in Phulera, Rajasthan, covering 4,000 sq. meters, with an approved production capacity of 30 KLPD and an installed capacity of 24 KLPD. It specializes in the production of biodiesel, glycerine, and fatty acids, with adaptable facilities capable of processing various feedstocks.
• Company was promoted and pioneered by Mr. Sarthak Soni, and Mr. Tanay Attar.

Financials: Rajputana Biodiesel IPO

Anchor: Rajputana Biodiesel IPO

Rajputana Biodiesel IPO : Salient Points

• Biodiesel is a renewable, biodegradable fuel manufactured domestically from non-edible vegetable oils, or recycled restaurant grease, Non-edible fat and methanol. Biodiesel meets both the biomass-based diesel and overall advanced biofuel requirement of the Renewable Fuel Standard. Biodiesel is a liquid fuel often referred to as B100 or neat biodiesel in its pure, unblended form. Like petroleum diesel, biodiesel is used to fuel compression-ignition engines.
• Biodiesel has less pollution and in its production other byproducts like glycerin are produced.

• They are incurring significant capital expenditure for Unit 3, aiming to establish a manufacturing unit. This facility will not only produce biodiesel but also manufacture own feedstock and add value to by-products. Specifically, they plan to refine crude glycerine into pharmaceutical- grade glycerine and maximize the value of fatty acids.
• With the capital expenditure at ₹11 Crore,they are targeting a production capacity of 50 KLPD of biodiesel. In the first full year of operations, this unit is expected to generate revenues of ₹120 Crore.
• With operational efficiencies, revenues could further increase to ₹150 Crore.
• Clients: Indian il, HP, Bharat Petroleum and many others

• Peers

• Biodiesels accounts for 80-90% of revenues. Rest evenly from glycerin and fatty acid.
• They also accumulate carbon credits from this manufacture.
• PE 10.9x (annualized) ; 11.7 x ; PE Fy24: 20x
• I intend to apply in Rajputana Biodiesel IPO subject to availability of funds. Have expansion plans and good R&D to move up the value chain like pharma grade glycerin. Biodiesel is enjoying good demand.
• GMP as reported on social media is around Rs. 100 (76%) .
• GYR Capital Advisors Private Limited, the Lead Manager has an excellent record.
• SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
• This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.