Ratnaveer Precision Engineering IPO

Ratnaveer Precision Engineering Limited is coming up with an IPO with a fresh issue and offer for sale. The existing shareholders, including the promoters, will sell their 30,40,000 shares in the offer-for-sale segment. The fresh issue is for approximately INR 135 crores. The funds raised are intended to be used to meet working capital requirements.

Ratnaveer Precision Engineering IPO  – Important Details

Ratnaveer Precision Engineering IPO Date 4th September-6th September 2023
Ratnaveer Precision Engineering IPO Listing Date 14th September 2023
Ratnaveer Precision Engineering IPO Price INR 93-98 per share
Ratnaveer Precision Engineering IPO Lot Size 150 shares
Ratnaveer Precision Engineering IPO Total Issue Size Approx INR 165 crores
Ratnaveer Precision Engineering IPO Basis of Allotment 11th September 2023
Ratnaveer Precision Engineering IPO Initiation of Refunds 12th September 2023
Ratnaveer Precision Engineering IPO Credit of Shares to Demat 13th September 2023
Ratnaveer Precision Engineering IPO Issue Type Book Built Issue IPO
Ratnaveer Precision Engineering IPO Listing At BSE, NSE

Ratnaveer Precision Engineering Ltd IPO – Company Profile

Ratnaveer Precision Engineering Limited is a stainless steel (“SS”) product manufacturer focused on producing finished sheets, washers, solar roofing hooks, pipes, and tubes. Compared to traditional steel, stainless steel has a higher resistance to corrosion, superior aesthetic finish, and a higher life span. These features have helped in increasing the popularity of stainless steel across the world.

The company operates out of four manufacturing units, out of which two (Unit-I and Unit-II) are located at GIDC, Vadodara, Gujarat, one (Unit-III) is located at Waghodia, Gujarat and the other one (Unit-IV) is located at GIDC, Ahmedabad, Gujarat. The manufacturing units are strategically located with the availability of transportation, which facilitates convenient transportation of the products. 

Ratnaveer Precision Engineering IPO – Fundamental Analysis

Revenue Growth: 

The company has demonstrated consistent revenue growth over the past three years, increasing from ₹3,596.63 million in 2021 to ₹4,797.48 million in 2023. This indicates a positive trend in their top-line performance.

Profitability:

 The company’s profitability, as measured by profit after tax, has also been on a strong upward trajectory. It increased from ₹55.02 million in 2021 to ₹250.31 million in 2023, indicating a significant improvement in profitability.

Return on Net Worth (RoNW): 

RoNW, which measures the company’s efficiency in utilizing its equity, has shown remarkable growth. It stood at 10.15% in 2021, increased to 15.46% in 2022, and surged to an impressive 29.12% in 2023. This indicates efficient utilization of equity.

Earnings Per Share (EPS): 

Diluted EPS has consistently increased from ₹1.59 in 2021 to ₹7.26 in 2023, reflecting improved earnings per share.

Net Asset Value (NAV) per Equity Share: 

NAV per equity share has been steadily rising from ₹16.21 in 2021 to ₹30.74 in 2023, indicating an increase in intrinsic value per share.

Asset and Liability Management: 

Total assets have grown from ₹2,559.24 million in 2021 to ₹3,890.48 million in 2023, reflecting an increased asset base. Liabilities have also increased, indicating a balanced financial structure.

Summary: 

Ratnaveer Precision Engineering has exhibited consistent revenue and profit growth over the past three years, coupled with impressive RoNW and EPS expansion. These financial indicators suggest positive prospects for investors. However, potential investors should assess the company’s industr