Ratnaveer-Precision-Engineering-Limited-IPO
The stainless steel market in India is growing at a rapid pace backed by the increasing demand for stainless steel products in diverse sectors in the domestic and international markets. This has created a favourable market for both big and small players in the stainless steel industry. The upcoming IPO offer belongs to this sector and is from Ratnaveer Precision Engineering Limited.
Ratnaveer Precision Engineering Limited IPO will open for subscription from 4th September 2023 to 6th September 2023.
Here are all the important details of Ratnaveer Precision Engineering Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of Ratnaveer Precision Engineering Limited are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 4th September 2023 |
| IPO Closing Date | 6th September 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face value of shares | Re. 10 per share |
| IPO Price Band | Rs. 93 – Rs. 98 per share |
| IPO Size | Rs. 165 crores (1,68,40,000 shares) |
| Offer for Sale | Rs. 30 crores (30,40,000 shares) |
| Fresh Issue | Rs. 135 crores (1,38,00,000 shares) |
The important dates for Ratnaveer Precision Engineering Limited IPO are highlighted below:
| Event | Date |
| Opening date | 4th September 2023 |
| Closing Date | 6th September 2023 |
| Allotment date | 11th September 2023 |
| Refund Date | 12th September 2023 |
| Share Credit Date | 13th September 2023 |
| Listing Date | 14th September 2023 |
Investors can subscribe to Ratnaveer Precision Engineering Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 13,950 – 14,700 Maximum – Rs. 1,91,100 |
| Shares | Minimum – 150 Maximum – 1950 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investors | 35% |
| QIB (Qualified Institutional Buyer) | 50% |
| NII (Non-Institutional Bidders) | 15% |
This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below,
Ratnaveer Precision Engineering Limited was established in 2002 and is in the business of manufacturing stainless steel finished sheets, washers, solar roofing hooks, pipes, and tubes. The company meets the demand for stainless steel from diverse industries and sectors like automotive, solar power, wind energy, power plants, oil & gas, pharmaceuticals, sanitary & plumbing, instrumentation, electromechanics, architecture, building & construction, electrical appliances, transportation, kitchen appliances, chimney liners, and other industries.
They operate from four manufacturing facilities. Among these, Unit-I and Unit-II are situated at GIDC, Savli, Vadodara, Gujarat. Unit-III is positioned in Waghodia, Vadodara, Gujarat, while Unit-IV is based in GIDC, Vatva, Ahmedabad, Gujarat. The company produces stainless steel finishing sheets, washers, and solar mounting hooks in Unit I, while Unit II manufactures stainless steel pipes and tubes. Unit III and IV are dedicated to backward integration: Unit III melts steel scrap into ingots, and Unit IV processes flat ingots into stainless steel sheets, used as raw material for SS washers.
Ratnaveer plans to enhance its range of stainless steel washers by introducing circlips to its product lineup. Currently, the company offers over 2,500 SKUs of SS washers, including various types like inner ring washers, spring washers, nord lock washers, retaining rings, internal tooth washers, and external tooth washers in different sizes and specifications. To support this expansion, the company has acquired land adjacent to Unit I at E-78, GIDC Industrial Estate, Savli, Dist. Vadodara, Gujarat, through a 99-year lease from GIDC.
During the fiscal year 2023, the company achieved a comprehensive operational revenue of Rs. 4,797.30 million. This included a domestic turnover of Rs. 3,875.39 million and an export turnover amounting to Rs. 921.91 million.
Ratnaveer Precision Engineering Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Revenue from Operations (Rs. in cr) | Profit after Tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 389 | 480 | 25 | Rs.7.26 | 29.12% |
| Mar-2022 | 309 | 428 | 9 | Rs.2.75 | 15.46% |
| Mar-2021 | 255 | 364 | 5 | Rs.1.59 | 10.15% |
(Source: RHP)
Some of the key strengths of Ratnaveer Precision Engineering Limited IPO that investors can take note of are
| Category | Details |
| Business model | The company has shown a consistent financial success and have a broad clientele along with a wide array of products with diverse designs. They have an integrated business approach emphasizing backward integration. |
| Other merits | They have suitable and effective quality control checks at various levels The company is also backed by the collaboration between experienced and youthful management, supported by dedicated employees |
Here are some of the risks that investors of Ratnaveer Precision Engineering Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company’s dependency on few customers poses revenue risk while lack of long-term supplier agreements may disrupt raw material supply.Business could be significantly affected by fluctuations in steel prices, and the company maintains a high debt-equity ratio. |
| Other concerns | The company has exposure to unfavourable market conditions in specific domestic regions, coupled with competition across diverse players in segmented industries. |
As of September 1st 28th, 2023, the grey market premium for the shares of Ratnaveer Precision Engineering Limited IPO is Rs. 40 as per market observers. This means the shares are expected to list at a premium of Rs. 40 per share over the listing cap price of Rs. 98.
Ratnaveer Precision Engineering Limited has the merit of catering to diverse customer groups from different industries which shows its wide presence in the market. The financial performance of the company has also consistently increased over the years however, the debt-equity ratio of the company is the highest when compared to its listed peers. Investors should therefore consider the financial performance of the company with respect to its past performance as well as according to industry standards before making an inevstment decision.
Investors can invest in this IPO through the Fisdom app.
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