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Ratnaveer Precision Engineering plans to raise Rs 165.03 crore through an initial public offering (IPO). The subscription for the IPO will be open from September 4 to September 6, 2023. The price band is fixed at Rs 93–98 per share.
The IPO comprises of fresh issue of shares worth Rs 135.24 crore and offer for sale worth Rs 29.79 crore. The face value of each share is Rs 10 and size of one lot is 150 shares.
Company Summary
Ratnaveer Precision Engineering Limited is a stainless steel (“SS”) product manufacturer focused on producing finished sheets, washers, solar roofing hooks, pipes and tubes.
The company has four manufacturing units which are strategically located facilitating convenient transportation of the company’s products.
The company’s products find application across various industries including automotive, solar power, wind energy, power plants, oil & gas, pharmaceuticals, sanitary & plumbing, instrumentation, electro mechanics, architecture, building & construction, electrical appliances, transportation, kitchen appliances, chimney
liners, etc.
Ratnaveer Precision Engineering plans to expand their portfolio of Stainless Steel washers by adding circlips into the product line. The company currently offers over 2500 SKUs of SS washers to its customers including inner ring washers, spring washers, nord lock washers, retaining rings, internal tooth washers and external tooth washers of different sizes and specifications.
The company’s products are used in both commercial and residential sector and are sold in domestic as well as overseas. The company said that the domestic market contributed about 80.79% of its total revenue, while export markets contributed about 19.21%, during the fiscal 2023.
Company Strengths
- Wide product portfolio and multiple designs product to serve diverse end-use applications.
- Well-establishedpresence in the international markets.
- Growth led by continuous investment and in-house R&D facility set up for new product development.
- Strategically located manufacturing facilities with a core focus on quality.
- Stringent quality assurance and quality control checks for the company’s products.
- Experienced promoter and professional management team with a committed employee base.
Company Financials
Period Ended | FY23 | FY22 | FY21 |
Total Assets (Rs in crore) | 389.05 | 308.63 | 255.92 |
Total Revenue (Rs in crore) | 481.15 | 428.47 | 364.05 |
EBITDA (Rs in crore) | 47.02 | 29.06 | 24.32 |
EBITDA Margin | 9.80% | 6.81% | 6.76% |
Profit After Tax (Rs in crore) | 25.04 | 9.48 | 5.46 |
PAT Margin | 5.22% | 2.22% | 1.52% |
Return on Equity | 29.12% | 15.46% | 10.15% |
Return on Capital Employed | 12.62% | 9.67% | 10.33% |
Debt To Equity Ratio | 2.17 | 2.89 | 2.67 |
Interest Coverage Ratio | 3.83 | 2.49 | 2.02 |
Purpose of the IPO
- The proceeds from the offer for sale shall be received by the promoter selling shareholder and the company will not receive any proceeds from the offer for sale.
- Further, the net proceeds from the fresh issue of shares will be utilised for funding the company’s working capital requirements and general corporate purposes.
Company Promoters
Vijay Ramanlal Sanghavi is the promoter of the company.
IPO Details
| IPO Date | September 4, to September 6, 2023 |
| Listing Date | September 14, 2023 |
| Face Value | Rs 10 per share |
| Price | Rs 93 – 98 per share |
| Lot Size | 150 shares |
| Total Issue Size | 16,840,000 shares aggregating up to Rs 165.03 crore |
| Fresh Issue | 13,800,000 shares aggregating up to Rs 135.24 crore |
| Offer for Sale | 3,040,000 shares aggregating up to Rs 29.79 crore |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 150 | Rs 14,700 |
Retail (Maximum) | 13 | 1950 | Rs 191,100 |
Small HNI (Minimum) | 14 | 2,100 | Rs 2,05,800 |
Small HNI (Maximum) | 68 | 10,200 | Rs 9,99,600 |
Large HNI (Minimum) | 69 | 10,350 | Rs 10,14,300 |
Allotment Details
Allotment of Shares | September 11, 2023 |
Initiation of Refunds | September 12, 2023 |
Credit of Shares to Demat Account | September 13, 2023 |
Listing Date | September 14, 2023 |
To check allotment, click here