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Ratnaveer Precision Engineering Limited IPO

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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 Date4th September 2023 to 6th September 2023
Listing Date14 September 2023.
Face ValueRs10 per share
PriceRs 93 to Rs 98 per share
Lot Size150 Shares
Total Issue Size16,840,000 shares
(combining up to Rs 165.03 Cr)
Fresh Issue13,800,000 shares
(combining up to Rs 135.24 Cr)
Offer for Sale3,040,000 shares of Rs 10
(combining up to Rs 29.79 Cr)
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
Share-holding pre issue34,699,040
Share-holding post issue48,499,040

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 Offered5,052,000 (30.00%)
QIB Shares Offered3,368,000 (20.00%)
NII (HNI) Shares Offered2,526,000 (15.00%)
Retail Shares Offered5,894,000 (35.00%)
Total Shares Offered16,840,000 (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 Date1st September 2023
Shares Offered5,052,000
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 Period4th September to 6th September 2023
Deadline for accepting UPI mandateUntil 5 PM on the issue closing day
Finalization of Allotment11th September 2023
Initiation of Refunds12th September 2023
Credit of Shares13th September 2023
Date of Listing14th September 2023
Mandate end date21st September 2023
Anchor Investors Lock-In End Date6th October 2023

Ratnaveer Precision Engineering Limited IPO Lot Size

ApplicationLotsSharesAmount
Retail (Min)1150Rs 14,700
Retail (Max)131950Rs 191,100
S-HNI (Min)142,100Rs 205,800
S-HNI (Max)6810,200Rs 999,600
B-HNI (Min)6910,350Rs 1,014,300

Financial information of Ratnaveer Precision Engineering Limited

Financial YearAssets (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 2021255.92364.055.4656.5852.32150.761.5924.32
31st March 2022308.63428.479.4865.9761.71190.732.7529.05
31st March 2023389.05481.1425.04106.0571.16229.997.2647.02

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.
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