Jajoo Rashmi Refractories to Raise ₹150 Crore Through IPO: Filed DRHP With SEBI

Jajoo Rashmi Refractories, a manufacturer of ferro alloys and refractory materials, has filed preliminary papers with the Securities and Exchange Board of India (SEBI) to raise ₹150 crore through an Initial Public Offering (IPO). The company operates primarily in the ferro alloys and refractory products sectors.

Jajoo Rashmi Refractories IPO Details

The proposed IPO consists entirely of a fresh issue by the company, with no offer-for-sale component, as per the draft papers filed on December 21, 2024. The funds raised will be directed toward expansion and working capital requirements. Unistone Capital has been appointed as the merchant banker responsible for managing the IPO process.

Use of IPO Proceeds

Jajoo Rashmi Refractories plans to use ₹61.8 crore of the net issue proceeds to establish new manufacturing facilities for expanding its ferro alloy production capabilities in Bokaro, Jharkhand. Another ₹47.67 crore will be allocated for working capital requirements, and the remaining funds will be used for general corporate purposes.

About Jajoo Rashmi Refractories 

Jajoo Rashmi Refractories operates three manufacturing units across Rajasthan, West Bengal, and Gujarat, with a combined installed production capacity of 78,000 Metric Tonnes Per Annum (MTPA). The company generates over 90% of its revenue from exports, with markets spanning the Middle East, Africa, South East Asia, South Asia, Western Europe, and East Asia.

The company produces ferro alloys, which are essential raw materials in the steel manufacturing industry. Additionally, it manufactures a variety of refractory products, including silica ramming mass, casting powders, quartz powder, and nozzle-filling compounds.

For the fiscal year 2024, the company reported a nearly 6% growth in net profit, reaching ₹24.3 crore, compared to ₹22.9 crore in the previous fiscal year. During the same period, revenue increased by 8.9% to ₹334 crore, up from ₹306.8 crore. In the quarter ended June 2024, the company reported a profit of ₹6.4 crore on revenue of ₹117.4 crore.

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