Akash Jha
Ratnaveer Precision Engineering, a manufacturer of stainless steel products situated in Gujarat, has set the range for its initial public offering (IPO) at Rs 93 to Rs 98 per share.
On September 4th, the book for the book-built offering will open.
At the upper end of the price range, the business plans to issue new shares for Rs 135.24 crore and conduct an OFS by proprietor Vijay Ramanlal Sanghavi for a total of Rs 165.03 crore.
On September 1, the anchor book for the IPO will go live for one day, and on September 6, 2023, the offer will end.
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Qualified institutional buyers (QIBs) can take up to 60% of the QIB share of the offer, and anchor book can take up to 50% of the QIB portion. Additionally, 15% of the issuance is set aside for ultra-high-net-worth individuals, while the remaining 35% is available to the general public.
Investors can place bids starting at 150 equity shares and increasing in 150 share increments. Retail investors can invest as little as Rs 14,700 in a single lot (150 shares) and as much as Rs 1,91,100 in thirteen lots (1,950 shares) at the upper price range. The maximum amount that an individual can invest in the IPO is Rs 2 million.
Minimum investment for high net worth persons is 2,100 shares (valued at Rs 2,05,800) and maximum investment is 10,200 shares (valued at Rs 9,99,600).The Rs 85 crore in working capital needs will be met using the net proceeds from the fresh issue by Ratnaveer Precision Engineering. The remaining balance will be allocated to the corporation’s operational budget.
The four-unit stainless steel products manufacturer produces finished sheets, washers, solar roofing hooks, pipes, and tubes for use in a wide variety of sectors, including the automobile, power, oil and gas, pharmaceutical, electromechanical, construction, electrical appliance, and kitchen appliance markets.
Net profit for the fiscal year ending in March FY23 was Rs 25 crore, an increase of 164.3 percent over the prior year due to the company’s good operating performance. There was a 306 bps increase in margin to 9.51% in FY23, resulting in a 65.7 percent increase in EBITDA (earnings before interest, tax, depreciation, and amortisation) to Rs 45.6 crore.
During the same time period, business revenue increased by 12.4% to Rs 480 crore. The local market accounts for roughly 80% of sales, while exports account for the remaining 20%.
By September 11, Ratnaveer Precision will have finalized the basis for allocating IPO shares, and by September 13, qualified investors’ demat accounts will be credited with their allotted equity shares.
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On September 14, as per the IPO timetable, its shares will begin trading on the major exchanges.
As of now, SBFC Finance, Concord Biotech, TVS Supply Chain Solutions, Pyramid Technoplast, Aeroflex Industries, Vishnu Prakash R Punglia, and Rishabh Instruments are the only other companies in India that have gone public since the beginning of the year.
