Rajputana Biodiesel, a producer of biofuels and its by-products glycerine and fatty acids, is set to launch an initial public offering (IPO) on November 26 to raise Rs 24.7 crore. The company has set a price band of Rs 123-130 per share for the offer.

The IPO, which will be entirely a fresh issue of 19 lakh equity shares, will close on November 28. The shares will be available for trading on the NSE Emerge from December 3.

Retail investors can bid for a minimum of 1,000 shares, priced at Rs 1.3 lakh, which constitutes a single lot. The maximum investment allowed per investor is Rs 2 lakh.

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The IPO’s net issue is divided as follows: 50% for qualified institutional buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors.

Rajputana Biodiesel^[1], based in Jaipur with a manufacturing unit in Rajasthan, has an installed production capacity of 24 kiloliters per day. The company produces biofuels along with glycerine and fatty acids.

Proceeds from the IPO will be utilized in various ways: Rs 4.2 crore will be provided as a loan to its subsidiary, Nirvaanraj Energy, for expanding its manufacturing facility in Uttar Pradesh. An additional Rs 12.2 crore will be allocated for the company’s working capital needs, and the rest will be used for general corporate purposes.

GYR Capital Advisors is the merchant banker handling the issue.

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