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
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.
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.
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 industry, competitive landscape, and risk factors before making an investment decision.
Ratnaveer Precision Engineering IPO Financial Information
|Particular||As at 31 March 2021||As at 31 March 2022||As at 31 March 2023|
|Revenue (₹ in Million)||3,596.63||4,269.38||4,797.48|
|Equity (₹ in Million)||565.77||659.74||1,060.54|
|Expenses (₹ in Million)||3,544.59||4,150.21||4,504.33|
|Profit and Loss After Tax (₹ in Million)||55.02||95.64||250.31|
|Diluted EPS only (₹)||1.59||2.75||7.26|
|NAV per Equity Share (₹)||16.21||19.20||30.74|
|Total Assets (in million)||2,559.24||3,086.32||3,890.48|
|Total Liabilities (in million)
Ratnaveer Precision Engineering IPO Peer Comparison
Ratnaveer Precision Engineering has a total income of ₹4,797.48 million with an EPS of ₹7.26 and RoNW of 29.12%. In comparison, M.M. Forgings has higher income and EPS but lower RoNW, while Menon Bearings and Venus Pipes & Tubes have lower income and EPS.
|Company||Total Income (₹ in million)||Face Value per Equity Share (₹)||P/E||EPS (Basic) (₹)||EPS (Diluted) (₹)||RoNW (%)||NAV per Equity Share (Basic) (₹)|
|Ratnaveer Precision Engineering Limited||4,797.48||10||NA||7.26||7.26||29.12%||30.74|
|M.M. Forgings Limited||13,951.10||10||20.26||52.02||52.02||18.23%||285.31|
|Menon Bearings Limited||2,169.40||1||23.07||5.84||5.84||24.47%||23.79|
|Venus Pipes & Tubes Limited||5,523.96||10||59.93||22.60||22.60||9.83%||158.78|
Ratnaveer Precision Engineering IPO Objective
Ratnaveer Precision Engineering aims to utilize the IPO proceeds to address its working capital needs, allocating INR 85 crores for general corporate purposes, which include technological advancement and business expansion initiatives.
- Funding working capital requirement: Currently, the company sources its working capital gap through bank borrowings and internal accruals, but to support its incremental business requirements, funding growth opportunities, and other strategic, business, and corporate purposes requires additional working capital. Hence, the company intends to utilize INR 85 crores from the funds raised towards working capital requirements.
- General corporate purpose: The company plans to deploy the balance funds towards the general corporate purpose, which is not limited to meeting expenses incurred in the ordinary business, such as strategic initiatives including the advancement of information technology, meeting future branch and business expansion, etc.
- Ratnaveer Precision Engineering Ltd IPO Risks And Challenges
Ratnaveer Precision Engineering faces potential risks related to negative cash flow, impacting its financial operations, and concentration risk due to the geographic concentration of production units, making them vulnerable to local disruptions.
- Negative Cash Flow: The cash flow of a company is a key indicator to show the extent of cash generated from operations to meet its capital expenditure, pay dividends, repay loans, and make new investments without raising finance from external resources. If the company cannot generate sufficient cash flow, it may adversely affect its business and financial operations.
- Concentration Risk: All the production units are located in one geographic area and therefore, any localized social unrest, natural disaster or breakdown of services or any other natural disaster in and around Vadodara and Ahmedabad, Gujarat or any disruption in production at, or shutdown of, the production units could have material adverse effect on the business and financial condition.
Ratnaveer Precision Engineering IPO – Industry & Market Potential
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. In 2022, India’s crude steel production registered a y-o-y growth of 6%.
Europe and the US form the largest export market for the Indian SS sheet manufacturing industry, accounting for more than 85 – 90% of the total export volume.
On the consumption side, India is also the second largest consumer of finished steel. The emergence of a middle-class consumer segment has altered the consumption landscape in India.
The two factors (steady demand & low entry barriers) have made the industry an attractive bet for smaller players. In addition, the lack of product differentiation and fragmented customer base has ensured that smaller players would successfully find a market for their products.
Ratnaveer Precision Engineering Ltd IPO – Type of Offer
Ratnaveer Precision Engineering’s IPO includes a Fresh Issue to raise INR 135 Crore for future working capital needs and an Offer For Sale (OFS) where promoters will sell 53,00,000 shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 135 Crore. This fund will meet the future working capital requirement.
- Offer For Sale (OFS): Existing shareholders, including promoters, will sell a portion of their stake in the company. The promoters are offering 53,00,000 shares for sale.
Ratnaveer Precision Engineering IPO Offer Size
Ratnaveer Precision Engineering Limited’s offer includes both fresh issue and offer for sale. 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.
The total issue size, including offer for sale and fresh issue is approx INR 165 crores.
Ratnaveer Precision Engineering IPO Allotment Structure
Ratnaveer Precision Engineering’s IPO allotment structure allocates 50% of shares to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 35% to Retail Individual Investors (RIIs) based on 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): 15% 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 35% 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 Ratnaveer Precision Engineering IPO?
To apply for the Ratnaveer Precision Engineering IPO through Alice Blue, you would typically follow these steps: Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Ratnaveer Precision Engineering 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 Ratnaveer Precision Engineering IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post 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 to Check Ratnaveer Precision Engineering IPO Allotment Status on Alice Blue?
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 Ratnaveer Precision Engineering 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 Ratnaveer Precision Engineering 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 to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Ratnaveer Precision Engineering IPO:
- Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Ratnaveer Precision Engineering IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Ratnaveer Precision Engineering IPO Offer Registrar
The registrar for the Ratnaveer Precision Engineering IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 8108114949
E-mail: [email protected]
Ratnaveer Precision Engineering IPO FAQs
1. What is the allotment date of the Ratnaveer Precision Engineering IPO?
The allotment date is 11th September 2023.
2. What is the price band of Ratnaveer Precision Engineering IPO?
The price band per share is INR 93-98.
3. What is the size of the 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 for rto meet working capital requirements.
4. What is the listing date of the Ratnaveer Precision Engineering IPO?
The listing date of the issue is 14th September 2023