Ratnaveer Precision Engineering IPO: The stainless steel product manufacturer with four manufacturing units in Gujarat is focused on the production of finished sheets, washers, solar roofing hooks, pipes and tubes. Stainless steel is a value-added product with high corrosion resistant properties.
The company provides products to several industries including automotive, power, oil and gas, pharmaceuticals, electromechanics, building & construction, electrical appliances, and kitchen appliances.
The subscription period for the initial public offering (IPO) of Ratnaveer Precision Engineering Limited began on Monday and will end on September 6, 2023. In order to raise Rs 165.03 crore from the public offering, the company has set a price range of Rs 93 to Rs 98 per equity share.
On September 14, the book build issue is scheduled to list on the Bombay Stock Exchange and the National Stock Exchange. Experts claim that shares of the company are currently trading for a premium of Rs 48 on the unlisted stock market, also known as the grey market.
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Price Band of Ratnaveer IPO
The offer’s price range has been set at Rs. 93-98 per share. At the upper price band, the market capitalization is Rs 475.3 crore.
IPO Date of Ratnaveer IPO
The book-built offer opens for subscription on September 4 and closes on September 6.
Issue Size
The Gujarat-based company intends to raise Rs 165.03 crore from the maiden public issue, at the upper price band. The IPO comprises fresh issue of 1.38 crore equity shares, amounting to Rs 135.24 crore, and an offer-for-sale (OFS) of 30.4 lakh shares, worth Rs 29.79 crore, by promoter Vijay Ramanlal Sanghavi.
The business acquired Rs 49.5 crore on September 1 from six anchor investors, including Societe Generale, Sixteenth Street Asian Gems Fund, Saint Capital Fund, Coeus Global Opportunities Fund, and Leading Light Fund VCC – The Triumph Fund.
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Lot Size of Ratnaveer IPO
The minimum bid is 150 equity shares, and any subsequent bids must be made in multiples of 150 shares. At the upper price band, retail investors can invest as little as Rs 14,700 for a single lot of 150 shares and as much as Rs 1,91,100 for 13 lots (1,950 shares). Up to Rs 2 lakh can be invested by retail investors in the IPO.
High net worth individuals who fall under the category of Rs 2–10 lakh minimum-to-maximum investment limits may submit an application for as few as 2,100 shares worth Rs 2,05,800 and as many as 10,200 shares worth Rs 9,99,600.
Listing Date and GMP of Ratnaveer Precision Engineering IPO
Ratnaveer Precision in consultation with the NSE will finalise the basis of allotment of IPO shares by September 11 and the equity shares will be transferred to demat accounts of successful investors by September 13. The refunds will be credited to bank accounts of unsuccessful participants by September 12.
The trading in its equity shares will commence on the BSE and NSE with effect from September 14, as per the IPO schedule.
Its shares were available at around 50 percent premium in the grey market, over the upper price band, analysts said on anonymity. The grey market is an unofficial platform where the shares can be bought and sold till the listing.
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Objectives of the Issue
Ratnaveer Precision Engineering will use the net fresh issue proceeds for working capital requirements amounting to Rs 85 crore, and general corporate purposes, while the OFS money will go to selling shareholder.
Financial Performance
The company recorded healthy financial performance in the years gone by. Net profit in the year ended March FY23 grew massively by 164.3 percent to Rs 25 crore compared to the previous year on robust operating performance. EBITDA (earnings before interest, tax, depreciation, and amortisation) climbed 65.7 percent on-year to Rs 45.6 crore in FY23, with margin expansion of 306 bps at 9.51 percent compared to FY22.
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