29 February 2024

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Ratnaveer Precision Engineering

Ratnaveer Precision Engineering Sets IPO Price Range and Details

Ratnaveer Precision Engineering, a manufacturer of stainless steel products located in Gujarat, has set the price range for its initial public offering at Rs 93-98 per share.

The book-built product will launch on September 4.

A fresh issuance of shares worth Rs 135.24 crore and an offer-for-sale (OFS) by promoter Vijay Ramanlal Sanghavi for Rs 29.79 crore total the amount the business plans to raise through a public offering at the highest price range.

The IPO’s anchor book part will be available for one day on September 1 and will end on September 6, 2023.

Qualified institutional buyers (QIB) will get half of the total amount of the offer, and anchor book will receive up to 60% of the QIB component. In addition, 15% of the overall issuance is set aside for high net worth people, with the remaining 35% going to regular investors.

Investors can put forward bids for a minimum of 150 equity shares and subsequently in multiples of 150 shares. Retail investors’ minimum application size is Rs 14,700 for a single lot (150 shares), and their maximum investment is Rs 1,91,100 for 13 lots (1,950 shares), both at the upper price band. Up to Rs 2 lakh can be invested in the IPO by retail investors.

Individuals with high net worth may apply for a minimum of 2,100 shares at Rs 2,05,800 and a maximum investment of Rs 9,99,600 for 10,200 shares.

IPO Details: Ratnaveer Precision Engineering’s Offering

The net proceeds from the latest offering would be used by Ratnaveer Precision Engineering to meet its 85 crore rupee working capital needs. The remaining sum will be applied to general business needs.

The four-unit manufacture of stainless steel products serves the automotive, power, oil & gas, pharmaceutical, electromechanic, building & construction, electrical appliances, and kitchen appliance industries by producing finished sheets, washers, solar roofing hooks, pipes, and tubes.

The company’s financial performance has remained solid throughout the years, as seen by the fact that its net profit for the financial year that ended in March FY23, which came to Rs 25 crore, climbed by 164.3% over the same period last year thanks to good operating results. In comparison to FY22, EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by 65.7% to Rs 45.6 crore, and the margin increased by 306 basis points to 9.51 percent.

Operations’ revenue increased by 12.4% to Rs 480 crore within the same time period. About 80% of its sales are made in the domestic market, with the remaining 20% coming from exports.

By September 11, Ratnaveer Precision will have decided on the basis for IPO share allocation, and by September 13, qualified investors will have their equity shares credited to their demat accounts.