Ramdevbaba Solvent Limited consists of a fresh issue of shares INR 50.27 crores. The company aims to establish a new facility, repay borrowings, fund working capital, and meet general purposes.
Ramdevbaba Solvent IPO – Important Dates
| Ramdevbaba Solvent IPO Date | April 15, 2024 to April 18, 2024 |
| Ramdevbaba Solvent IPO Listing Date | April 23, 2024 |
| Ramdevbaba Solvent IPO Price | INR 80 to 85 per share |
| Ramdevbaba Solvent IPO Lot Size | 1600 Shares |
| Ramdevbaba Solvent IPO Total Issue Size | INR 50.27 crores |
| Ramdevbaba Solvent IPO Basis of Allotment | April 19, 2024 |
| Ramdevbaba Solvent IPO Initiation of Refunds | April 22, 2024 |
| Ramdevbaba Solvent IPO Credit of Shares to Demat | April 22, 2024 |
| Ramdevbaba Solvent IPO Issue Type | Book Built Issue IPO |
| Ramdevbaba Solvent IPO Listing At | NSE, SME |
Ramdevbaba Solvent Limited IPO – Company Profile
Ramdevbaba Enterprises specializes in manufacturing and distributing Physically Refined Rice Bran Oil to FMCG companies and under their brands. Additionally, they produce DORB and sell various by-products across multiple states.
They are strategically located near Nagpur, Maharashtra, facilitating an efficient supply of Rice Bran Oil and DORB across India. Integrated operations, FMCG partnerships, and stringent quality control ensure competitive advantage and market leadership.
They plan to boost sales of its Rice Bran Oil brands, “Tulsi” and “Sehat,” by offering bundled products, including soaps and detergents, through a separate subsidiary, enhancing market competitiveness and customer value.
Ramdevbaba Solvent Limited IPO Review
Ramdevbaba Solvent’s financial analysis reveals a mixed performance. Revenue increased initially but fell short later. Profitability and equity improved, while return on net worth declined, indicating varying aspects of the company’s performance.
1. Revenue Trend: The revenue increased from ₹58,287.73 lakhs in March 2022 to ₹69,775.26 lakhs in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 46,359.01 lakhs, falling short of last year’s benchmark.
2. Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
3. Profitability: The profit after tax (PAT) has significantly increased from ₹659.15 lakhs in March 2022 to ₹828.90 lakhs by December 2023. This improvement in profitability could be a source of confidence for investors.
4. Earnings per Share (EPS): The diluted EPS have risen from ₹4.79 in March 2022 to ₹5.60 by December 2023, reflecting higher earnings per share for investors.
5. Return on Net Worth (RoNW): The RoNW has declined from 20.90% to 14.24%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
6. Financial Position: Total assets have increased, suggesting potential business growth.
Ramdevbaba Solvent Ltd IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 58,287.73 | 69,775.26 | 46,359.01 |
| Equity (₹ in lakhs) | 3,483.1 | 4,783.25 | 6,857.15 |
| Expenses (₹ in lakhs) | 57,605.96 | 68,725.42 | 45,435.62 |
| Profit and Loss After Tax (₹ in lakhs) | 659.15 | 1,300.15 | 828.90 |
| Diluted EPS only (₹) | 4.79 | 9.45 | 5.60 |
| Return on Net Worth (%) | 20.90 | 31.46 | 14.24 |
| NAV per Equity Share (₹) | 25.31 | 34.76 | 46.33 |
| Total Assets (in lakhs) | 13,134.86 | 19,062.61 | 20,341.24 |
| Total Liabilities (in lakhs) | 9,651.76 | 14,279.36 | 13,457.09 |
| Debt Equity Ratio (in times) | 1.86 | 20.7 | 1.46 |
Ramdevbaba Solvent Limited IPO Peer Comparison
Ramdev Baba Solvent Limited boasts strong returns on net worth and earnings per share, while BCL Industries Limited demonstrates promising revenue and price-to-earnings ratio, and Gokul Refoils and Solvent Limited shows high revenue despite a lower return on net worth.
| Company | Revenue from Operations(₹ in lakhs) | Face Value (₹) | P/E (₹) | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Ramdev Baba Solvent Limited | 69,775.26 | 10 | NA | 9.45 | 9.45 | 31.46 | 34.76 |
| BCL Industries Limited | 1,81,832.84 | 1 | 21.15 | 2.75 | 2.66 | 15.19 | 19.90 |
| Gokul Refoils and Solvent Limited | 3,13,656.80 | 2 | 14.39 | 2.44 | 2.44 | 7.64 | 33.15 |
| Gujarat Ambuja Exports Limited | 4,90,899.00 | 1 | 10.99 | 14.40 | 14.40 | 14.50 | 106.15 |
| Kriti Nutrients Limited | 78,687.14 | 1 | 22.33 | 4.15 | 4.15 | 11.70 | 26.42 |
| Shri Venkatesh Refineries Limited | 62,912.23 | 10 | 5.48 | 12.96 | 12.96 | 24.09 | 59.79 |
Ramdevbaba Solvent Ltd IPO Objective
The main objectives of Ramdevababa Solvent are to allocate funds for a new manufacturing facility, repay outstanding borrowings, and fund the company’s working capital needs.
- Setting up of new manufacturing facility: The company plans to utilize INR 18.81 crores from the net proceeds of the issue for land development (INR 8 crores), civil and structural costs (INR 6.11 crores), and purchasing plant and machinery (INR 11.90crores) for the new manufacturing facility.
- Repayment in whole or in part, of certain outstanding borrowings: The company plans to utilize INR 8.41 crores from the net proceeds to partially or fully repay outstanding borrowings of INR 109.83 crores availed through various borrowing arrangements with banks.
- Funding the company’s working capital requirements: The company plans to utilize INR 12 crores from the net proceeds in Fiscal 2025 to meet additional working capital requirements, with the remainder sourced from existing facilities and internal accruals.
- General Corporate Purposes: The company will deploy the balance of funds towards general corporate goals, including strategic initiatives, brand building, marketing, capital expenditures, and general corporate exigencies, which are priorities for the company’s utilization of funds.
Ramdevbaba Solvent Ltd IPO Risks And Challenges
Ramdevbaba Solvent’s risks include dependency on regional suppliers, potential disruptions in production and customer relations, reduced demand for Rice Bran Oil affecting revenue, and vulnerability to losing FMCG customers.
- Dependence on suppliers from Maharashtra, Madhya Pradesh, Chhattisgarh, and Gujarat may disrupt production schedules and customer relations if raw material shortages occur, impacting product delivery and reputation.
- A substantial revenue comes from Rice Bran Oil sales, including its brands and FMCG contracts. Reduced demand or preference for Rice Bran Oil could negatively impact business operations and financial standing.
- Businesses rely on sales from FMCG firms without long-term agreements. Losing these customers, reduced purchases or product failure may significantly impact business operations, results, and financial health.
Ramdevbaba Solvent Limited IPO – Industry & Market Potential
The food processing sector, a priority under “MAKE IN INDIA,” receives support through schemes promoting infrastructure development, including mega food parks. An Investors Portal and collaboration with Invest India enhance investment facilitation.
The National Policy on Biofuels targets 20% ethanol blending by 2030, with demand expected to rise to 1016 crore liters by 2025. Efforts by DFPD and OMCs to enhance distillation capacity will drive industry growth.
The Indian FMCG sector, fueled by rising income and brand awareness, reached US$56.8 billion in December 2022. Revenue growth is expected to double, and digital advertising is expected to rise significantly, with FMCG leading the way.
Ramdevbaba Solvent Limited IPO – Type of Offer
Ramdevbaba Solvent Limited will have a fresh issue worth INR 50.27 crores. The company aims to establish a new facility, repay borrowings, fund working capital, and meet general purposes.
Ramdevbaba Solvent Limited IPO Offer Size
The offer size of Ramdevbaba Solvent Limited is INR 50.27 crores. The company seeks funds to establish a new facility, repay borrowings, fund working capital, and meet general purposes.
Ramdevbaba Solvent Limited IPO Allotment Structure
Ramdevbaba Solvent Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Ramdevbaba Solvent Limited IPO?
To apply for the Ramdevbaba Solvent IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Ramdevbaba Solvent IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Ramdevbaba Solvent IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Ramdevbaba Solvent ‘s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Ramdevbaba Solvent IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Ramdevbaba Solvent IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Ramdevbaba Solvent IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Ramdevbaba Solvent IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Enterprise (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Ramdevbaba Solvent Ltd IPO Offer Registrar
The registrar for the Ramdevbaba Solvent Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
BIGSHARE SERVICES PRIVATE LIMITED
Office No. S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali Caves Road,
Andheri (East), Mumbai – 400 093,
Maharashtra, India
Telephone: +91 22 6263 8200
Email: [email protected]
Website: [email protected]
Ramdevbaba Solvent Limited IPO – FAQs
The allotment date of the Ramdevbaba Solvent Limited IPO is April 19, 2024.
The price band of the issue is INR 80-85 per share.
The offer size of Ramdevbaba Solvent Limited is INR 50.27 crores. The company seeks funds to establish a new facility, repay borrowings, fund working capital, and meet general purposes.
The listing date of Ramdevbaba Solvent ‘s IPO is April 23, 2024.
