Ratnaveer Precision Engineering Limited specializes in the manufacturing of stainless steel (SS) products and was incorporated in 2002. It mainly manufactures stainless steel washers, sheets, pipes, solar roofing hooks, and tubes.
Ratnaveer Precision Engineering Limited has four manufacturing units out of which Unit 1 is involved in manufacturing SS solar hooks, washers, and SS finishing sheets and Unit is involved in manufacturing of SS pipes and tubes. Melted steel scrap is turned into steel ingots in Unit 3 whereas, these steel ingots are rolled flat and further transformed into SS sheets, which are further used in manufacturing of SS washers. Overall, Unit 3 and Unit 4 are devoted to the background integration process. Units 1 and 2 are situated in GIDC, Savli, Vadodara, Gujarat, while Units III and IV are situated at Waghodia, Vadodara, Gujarat, and GIDC, Vatva, Ahmedabad, Gujarat, respectively.
Its products are used in various industries of sanitary and pluming, solar, wind, power, building and construction, kitchen appliances, electromechanics, pharmaceutical, oil & gas, automotive, electrical appliances, chimney liners, instrumentation, etc. These products are sold within India and abroad for commercial and residential sector.
In the fiscal year of March 2023, the company recorded a total revenue of 481.15 crores, out of which revenue generated from operations was 479.73 crores which is 11.01% more than the last year’s revenue from operations.
Objective Ratnaveer Precision Engineering IPO:
Ratnaveer Precision Engineering Limited intends to use the money received from the initial public offering to:
- Meeting working capital needs
- Fund the broad company objectives
Ratnaveer Precision Engineering Limited IPO Details
The total issue size of the initial public offer of Ratnaveer Precision Engineering Limited is Rs 165.03 crore. The IPO size is Rs. 93 – 98 per share. The company’s IPO comprises a fresh equity issue worth 135.24 crore and OFS worth 29.79 crores. The IPO will list on BSE, NSE.
| IPO Date | 4th September 2023 to 6th September 2023 |
| Listing Date | 14 September 2023. |
| Face Value | Rs10 per share |
| Price | Rs 93 to Rs 98 per share |
| Lot Size | 150 Shares |
| Total Issue Size | 16,840,000 shares (combining up to Rs 165.03 Cr) |
| Fresh Issue | 13,800,000 shares (combining up to Rs 135.24 Cr) |
| Offer for Sale | 3,040,000 shares of Rs 10 (combining up to Rs 29.79 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share-holding pre issue | 34,699,040 |
| Share-holding post issue | 48,499,040 |
Ratnaveer Precision Engineering Limited IPO Reservation
With a total share of 16,840,000, Ratnaveer Precision Engineering Limited IPO offers shares in the following way:
| Anchor Investor Shares Offered | 5,052,000 (30.00%) |
| QIB Shares Offered | 3,368,000 (20.00%) |
| NII (HNI) Shares Offered | 2,526,000 (15.00%) |
| Retail Shares Offered | 5,894,000 (35.00%) |
| Total Shares Offered | 16,840,000 (100%) |
Ratnaveer Precision Engineering IPO Anchor Investors Details
Ratnaveer Precision Engineering Limited offers 30% shares to the anchor investors and aiming to raise Rs 49.51 crore from anchor investors.
| Bid Date | 1st September 2023 |
| Shares Offered | 5,052,000 |
| Anchor Portion Size (In Cr.) | 49.51 |
| Anchor lock-in period end date for 50% shares (30 Days) | 26th September 2023 |
| Anchor lock-in period end date for remaining shares (90 Days) | 23rd January 2024 |
Ratnaveer Precision Engineering Limited IPO Schedule
| Issue Period | 4th September to 6th September 2023 |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | 11th September 2023 |
| Initiation of Refunds | 12th September 2023 |
| Credit of Shares | 13th September 2023 |
| Date of Listing | 14th September 2023 |
| Mandate end date | 21st September 2023 |
| Anchor Investors Lock-In End Date | 6th October 2023 |
Ratnaveer Precision Engineering Limited IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 150 | Rs 14,700 |
| Retail (Max) | 13 | 1950 | Rs 191,100 |
| S-HNI (Min) | 14 | 2,100 | Rs 205,800 |
| S-HNI (Max) | 68 | 10,200 | Rs 999,600 |
| B-HNI (Min) | 69 | 10,350 | Rs 1,014,300 |
Financial information of Ratnaveer Precision Engineering Limited
| Financial Year | Assets (in Cr.) | Revenue (in Cr.) | PAT (in Cr.) | Net Worth (in Cr.) | Reserves and Surplus (in Cr.) | Total Borrowing (in Cr.) | EPS (in Cr.) | EBITDA (in Cr.) |
| 31st March 2021 | 255.92 | 364.05 | 5.46 | 56.58 | 52.32 | 150.76 | 1.59 | 24.32 |
| 31st March 2022 | 308.63 | 428.47 | 9.48 | 65.97 | 61.71 | 190.73 | 2.75 | 29.05 |
| 31st March 2023 | 389.05 | 481.14 | 25.04 | 106.05 | 71.16 | 229.99 | 7.26 | 47.02 |
Risk elements to think about
- The steel industry’s pricing is influenced by market demand, volatility, and economic conditions, which can significantly impact business results, operations, prospects, and financial conditions.
- 86% of the company’s raw materials come from its top 10 suppliers, therefore the absence of long-term contracts may have a negative impact on operations, financial situation, and cash flows.
- The company’s top 10 clients account for the majority of its income, thus any failure to build long-term relationships might have an unfavorable impact on its operations and profitability.
