Ratnaveer Precision Engineering Limited IPO opened on 4th September 2023 for subscription and closes on 6th September 2023.
The IPO has two components –
- Fresh Issue of equity shares aggregating up to Rs. 135.24 crores.
- Offer for Sale of equity shares aggregating up to Rs. 29.79 crores of face value of Rs. 10 each
Combined the total IPO Issue size is Rs. 165.03 crores.
You will find all the relevant details in the article that will help you make informed IPO investment decisions in Ratnaveer Precision Engineering Limited IPO.
Ratnaveer Precision Engineering Limited IPO Details
| Particulars | IPO Details |
| IPO Opening date | 4th September 2023 |
| IPO Closing date | 6th September 2023 |
| IPO Price | Rs. 93 to Rs. 98 |
| Lot size | 150 shares |
| Issue size | Rs. 165.03 Cr |
| No. of fresh shares | 13,800,000 shares aggregating to Rs. 135.24 crores |
| Offer for Sale | 3,040,000 shares aggregating to Rs. 29.79 crores |
| Listing on | BSE and NSE |
Other upcoming IPOs in 2023.
Ratnaveer Precision Engineering Limited IPO Timetable
| Particulars | IPO Details |
| IPO Opening date | 4th September 2023 |
| IPO Closing date | 6th September 2023 |
| Basis of Allotment date | 11th September 2023 |
| Credit of Share | 13th September 2023 |
| Listing date | 14th September 2023 |
Ratnaveer Precision Engineering Limited GMP
Grey Market Price (GMP) provides you with a reasonable indication of price upon listing. You should take precautions because GMP is not an official price and only an indicative value.
In the past 4-5 days GMP data collected from various sources like reputed financial websites, news channels, stockbrokers and IPO blogs is under.
| Date | GMP |
| 4th September 2023 | Rs. 48 |
| 3rd September 2023 | Rs. 48 |
| 2nd September 2023 | Rs. 50 |
| 1st September 2023 | Rs. 50 |
Ratnaveer Precision Engineering Limited Issue Size
Total Issue Size = Rs. 165.03 crores.
Of which the Fresh Shares are for an aggregate amount of upto Rs. 135.24 Crs. The OFS portion of IPO is for an aggregate amount of Rs. 29.79 crores.
The IPO bidding process can be found here.
Industry Overview
Ratnaveer Precision Engineering Limited is a stainless steel (“SS”) product manufacturer focused on producing
- SS finished sheets,
- SS washers,
- SS solar roofing hooks,
- SS pipes and
- SS tubes
SS sheet manufacturing in India is a fragmented industry, with a domination of small & medium-sized players who make up the unorganized segment.
According to the World Steel Association’s (WSA’s) June 2023 update, India produced approximately 67.9 Mn tons of steel during the January – June 2023 period.
This is nearly 7.4% higher than the same period the previous year. Further, the Indian steel industry would end the year with approximately 136 Mn tons of crude steel.
Talking about India’s position in the global stainless-steel market, India with an average 7% share in global SS steel output (during 2016-20), remained the second largest stainless-steel producer behind China till 2020.
During the first quarter of 2023, SS production in India increased by 6.6%.
Since 2011, stainless steel production has increased at a CAGR of 7.8% per annum from ~2.16 Mn Tonnes in 2011 to 3.92 Mn Tonnes in 2019.
Despite being one of the largest producers as well as consumers of stainless steel, the per capita stainless steel consumption in India remains low. India’s per capita stainless steel consumption has increased from 1.2 Kg in 2010 to 2.5 Kg in 2019, however, its consumption is comparatively lower compared to the world average of 6 Kg per capita.
Ratnaveer Precision Engineering Limited Overview
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 grown from a single-product in 2002 to a multi-product manufacturing company at present.
Their products find application across various industries like automotive, solar power, wind energy, power plants, oil & gas, pharmaceuticals, sanitary & plumbing, instrumentation, electromechanics, architecture, building & construction, electrical appliances, transportation, kitchen appliances, and chimney liners.
Ratnaveer Precision’s SS product-wise revenue (Rs. million) for the last three years is under.
Ratnaveer Precision operates from four manufacturing units
- Unit-I and Unit-II are located at GIDC, Savli, Vadodara, Gujarat
- Unit-III is located at Waghodia, Vadodara, Gujarat
- Unit-IV is located at GIDC, Vatva, Ahmedabad, Gujarat
The company sells products both in the domestic as well as international markets. Ratnaveer Precision has been exporting since incorporation.
As of March 31, 2023, it exports SS products to Germany, the UK, Spain, and the Netherlands.
Ratnaveer Precision Engineering Limited Subscription Data
Subscription data shows the number of times the IPO is subscribed overall and also under each category. The day-wise subscription data is below.
| Date | QIB | NII | Retail | Total |
| Day – 1 04th September 2023 | 0.05 | 9.03 | 7.65 | 5.77 |
| Day – 2 05th September 2023 | 4.21 | 42.25 | 23.12 | 21.82 |
| Day – 3 06th September 2023 | 133.05 | 135.21 | 54.01 | 93.99 |
Ratnaveer Precision Engineering Limited Promoter Details
Vijay Ramanlal Sanghavi is the promoter of the company. He holds 29,008,000 equity shares, which constitute 83.06% of the issued, subscribed and paid-up equity share capital of the company.
Seema Vijay Sanghavi and Briyanshi Vijay Sanghavi form part of the promoter group. The promoters and promoter group collectively hold 29,945,576 Equity Shares, equal to 86.30% of the pre-issue shares issued.
Ratnaveer Precision Engineering Limited Financials
Key financials of Ratnaveer Precision Engineering Limited Ltd for the last 3 completed financial years is under. These include the fiscal years FY23, FY22 and FY21.
| Details | FY- 2023 | FY- 2022 | FY- 2021 |
| Total Assets | Rs. 389.04 cr | Rs. 308.63 cr | Rs. 255.92 cr |
| Total Income | Rs. 481.14 cr | Rs. 428.47 cr | Rs. 364.05 cr |
| Profit After Tax | Rs. 25.04 cr | Rs. 9.47 cr | Rs. 5.46 cr |
| Net Worth | Rs. 106.05 cr | Rs. 65.97 cr | Rs. 56.57 cr |
| Other Equity (including retained earnings) | Rs. 71.16 cr | Rs. 61.71 cr | Rs. 52.31 cr |
| Total Borrowing | Rs. 229.98 cr | Rs. 190.72 cr | Rs. 150.76 cr |
The net worth of Ratnaveer Precision Engineering Limited grew from Rs. 56.57 cr in FY 2021 to Rs. 106.05 cr in 2023. In the past three years, Ratnaveer Precision Engineering Limited’s long-term borrowings has increased from Rs. 150.76 cr to 229.98 cr.
During the same period, the total income of Ratnaveer Precision Engineering Limited has grown in the last three years from Rs. 364 cr to Rs. 481 cr. The PAT has also grown almost 4.5 times from Rs. 5.46 cr to Rs. 25.04 cr during the same period.
Ratnaveer Precision Engineering Limited Peer Comparison
The below table shows a comparison between Ratnaveer Precision Engineering Limited and other listed companies that are engaged in a similar business.
| Company | EPS | P/E | RoNW | NAV |
| Ratnaveer Precision Engineering Limited | 7.26 | – | 29.12% | 30.74 |
| M.M. Forgings Limited | 52.02 | 20.26 | 18.23% | 285.31 |
| Menon Bearings Limited | 5.84 | 23.07 | 24.47% | 23.79 |
| Venus Pipes & Tubes Limited | 22.60 | 59.93 | 9.83% | 158.75 |
Ratnaveer Precision Engineering Limited Objects of the Issue
Ratnaveer Precision Engineering Limited proposes to utilize the Net Proceeds from the Issue for
1. Funding working capital requirements
The company has significant working capital requirements. In the ordinary course of business, Ratnaveer Precision funds its working capital needs through internal accruals and availing financing facilities from banks and financial institutions.
The working capital requirements, as estimated by the company for FY 2024 is Rs. 314.30 cr and Rs. 343.15 crores for FY 2025.
Ratnaveer Precision proposes to utilize Rs. 85 crores towards funding its working capital requirements in the ordinary course of business. The financing will happen stage-wise – Rs. 55 cr in FY 2024 and the rest amount of Rs. 30 crores will be deployed in FY 2025.
2. For General corporate purposes
The rest amount will be spent on general corporate purposes subject to such utilization not exceeding 25% of the Net Proceeds, in compliance with the SEBI ICDR Regulations.
Ratnaveer Precision Engineering Limited IPO: Is it Worth Investing?
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 grown from a single-product in 2002 to a multi-product manufacturing company at present.
It has a wide product portfolio and multiple designs products. The company is set up by an experienced promoter and is backed by a team of young and experienced management staff.
Key risks to consider are –
- Fluctuations in steel prices
- Operates in a highly competitive and fragmented industry with low barriers to entry
- Dependent on a few customers for a major part of revenues
- SS is a high volume-low margin business
- Not received necessary approval for factory premises at Unit-I
- Pending litigations for around Rs. 24.6 cr
On the financial side, the net worth of Ratnaveer Precision Engineering Limited grew from Rs. 56.57 cr in FY 2021 to Rs. 106.05 cr in 2023. In the past three years, Ratnaveer Precision Engineering Limited’s long-term borrowings have increased from Rs. 150.76 cr to 229.98 cr.
During the same period, the total income of Ratnaveer Precision Engineering Limited has grown in the last three years from Rs. 364 cr to Rs. 481 cr. The PAT has also grown almost 4.5 times from Rs. 5.46 cr to Rs. 25.04 cr during the same period.
