Akash Jha
On September 4, Ratnaveer Precision Engineering of Vadodara will release its initial public offering. Next week, the price band for the book-built issue is anticipated to be announced.
The initial public offering (IPO), which concludes on September 6, includes a fresh issue of 1.38 crore equity shares by the company and an offer-for-sale (OFS) of 30.40 lakh shares by promoter Vijay Ramanlal Sanghavi. On September 1, the anchor book will be accessible for a day.
The total amount raised through an IPO could be between Rs 165 and Rs 166 crore, according to sources who spoke to Moneypoise on condition of anonymity.
The majority of the net proceeds from the new issue will be used for working capital requirements totaling Rs 85 crore, of which Rs 55 crore will be deployed in the current fiscal year and the remaining Rs 30 crore will be deployed in FY25. The remaining proceeds from the fresh issue will be used for general corporate purposes.
The Gujarat-based manufacturer of stainless steel products focuses on the production of finished sheets, washers, solar roofing hooks, pipes and tubes, which are utilised by a variety of industries, including the automotive, power plants, oil & gas, pharmaceuticals, electromechanics, building & construction, electrical appliances and kitchen appliances sectors.
Ratnaveer Precision Engineering’s net income increased by a staggering 164.3 percent year-over-year to Rs 25 crore for the fiscal year ending in March FY23, on the back of strong operating performance. The previous year’s revenue was Rs 480 crore, an increase of 12.4% over the previous year. More than 80% of the revenue came from domestic commerce, while the remainder came from exports.
For the fiscal year 2022-23, operating EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by 65.7% year-over-year to Rs 45.60 crore, with a margin expansion of 306 basis points to 9.51 percent.
In FY23, the return on capital employed and return on equity remained strong at 12.62 percent and 29.12 percent, respectively, up significantly from 9.67 percent and 15.46 percent in FY22.
Also Read : Bondada Engineering IPO bought 106.65 times on final day
However, the company’s borrowings increased to Rs 230 crore in the most recent fiscal year, up from Rs 190.7 crore in FY22, resulting in a rise in finance cost to Rs 123 crore from Rs 116.7 crore during the same period, while the debt-to-equity ratio improved to 2.17 from 2.80 during the same period.
According to the IPO schedule, Ratnaveer Precision will début on the BSE and NSE on September 14.
The merchant banker for the offering is Unistone Capital, while the registrar is Link Intime India.
