P S Raj Steels Limited, a manufacturer of stainless-steel pipes and tubes in India, on Monday filed the draft red herring prospectus (DRHP) with NSE Emerge. The company’s initial public offering comprises a fresh issuance of 20,20,000 equity shares, each with a face value of Rs 10.Khambatta Securities Limited is the sole book-running lead manager to the offer, and Bigshare Services Private Limited is the Registrar.The Hisar-headquartered company is a manufacturer of stainless-steel pipes and tubes in India. The product range offered and produced by PSSR consists of approximately 250 sizes of NB (Nominal Bore) & OD (Outer Diameter) series are manufactured enough to create its exclusivity, PAN India. The production of bigger diameter pipe & special sizes for different original equipment manufacturers is the edge of the company over other industry competitors. Its products serve a wide range of sectors, including railways, furniture, households, gate railing, door frames, rice plants, sugar mills, food processing and heat exchanger, etc, with 70 per cent used in fabrication and 30 per cent in industrial applications.P S Raj Steels has recorded Rs 297.74 crore in revenue from operations with a profit (PAT) of Rs 6.36 crore in the fiscal year 2024, compared with Rs 225.42 crore and a profit (PAT) of Rs 3.65 crore in FY23.The company operates a manufacturing unit with an installation capacity of 13,460 metric tons per annum, which is spread over an area of 3 acres in Hisar, Haryana. It supplies finished goods under the brand name “PSSR” in 19 states across India, including Uttar Pradesh, Haryana, Punjab, Madhya Pradesh, Delhi, Rajasthan and others.According to DRHP, PSSR intends to utilise Rs 23.5 crore of the total IPO proceeds towards working capital requirement including margin money and the remaining capital will be used for issue related expenses.PSSR sources raw materials primarily from Jindal Stainless Limited (JSL), one of the largest producers of stainless steel in India. It has maintained a strong relationship with JSL for over 12 years, supported by a Memorandum of Understanding (MOU), ensuring a continuous supply of raw material, which constitutes approximately 95% of the company’s requirements.The company’s brand, PSSR, has grown into a highly established brand and serves several customers in various sectors, such as automobile ancillaries, heat exchanger manufacturing, rail coach ancillaries, industrial equipment & hardware manufacturing, decorative furniture andrailing manufacturing and general engineering manufacturing.The Promoters, Raj Kumar Gupta, Deepak Kumar, Vishal Gupta and Gaurav Gupta are qualified professionals with an individual cumulative experience of more than 5 decades in the Steel Pipes & Tubes industry and have been instrumental in driving the company’s growth since the inception of the business.Mohammad HarisHaris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experi…Read More