Ramdevbaba Solvent Limited is set to launch its Initial Public Offering (IPO) in the Indian stock market, offering investors an opportunity to participate in the growth story of the company. Here’s a detailed breakdown of the IPO:
**IPO Details:**
– Ramdevbaba Solvent IPO is a book built issue of ₹50.27 crores, comprising entirely of a fresh issue of 5,914,600 shares.
– The IPO opens for subscription from April 15, 2024, to April 18, 2024.
– Price band: ₹80 to ₹85 per share.
– Minimum lot size: 1600 shares.
– Listing Exchange: NSE SME.
**Reservation Details:**
– The IPO offers 5,914,600 shares, with allocations as follows:
– QIB: 1,120,000 shares (18.94%)
– NII: 872,000 shares (14.75%)
– Retail: 1,960,000 shares (33.14%)
– Anchor investors: 1,680,000 shares (28.41%)
**Key Players:**
– Book Running Lead Manager: Choice Capital Advisors Pvt Ltd
– Registrar: Bigshare Services Pvt Ltd
– Market Maker: Choice Equity Broking
**Timeline:**
– Allotment: April 19, 2024
– Refund initiation: April 22, 2024
– Share credit to Demat: April 22, 2024
– Listing Date: April 23, 2024
**Promoter Holding:**
– Pre-Issue Shareholding: 81.01%
**About Ramdevbaba Solvent Limited:**
– Founded in 2008, the company specializes in the production and distribution of physically refined rice bran oil.
– It caters to FMCG companies like Mother Dairy, Marico, and Empire Spices, and also sells rice bran oil under its own brands “Tulsi” and “Sehat.”
– Additionally, the company produces de-oiled rice bran (DORB) and other by-products for livestock and poultry feed.
**Financial Performance:**
– Revenue increased by 20.35% and profit after tax (PAT) rose by 97.25% between March 31, 2023, and March 31, 2022.
– Key Performance Indicators (KPIs) as of December 31, 2023:
– Return on Capital Employed (ROCE): 10.76%
– Debt/Equity: 1.46
– Return on Net Worth (RoNW): 14.24%
– Price to Book Value (P/BV): 1.83
– PAT Margin: 1.79%
**Objects of the Issue:**
– Setting up of a new manufacturing facility.
– Repayment of outstanding borrowings.
– Funding working capital requirements.
– General corporate purposes.
**IPO Review:**
Analysts suggest cautious optimism, citing the company’s niche position in central India for rice bran oil supply and its expansion into new ventures like ethanol blending.
**Subscription Status:**
As of April 15, 2024, 11:41:57 AM (Day 1), the IPO was subscribed 0.83 times, with robust interest from retail investors and moderate interest from NII, while QIB subscription remained nil.
Investors have shown significant interest in the Ramdevbaba Solvent IPO, attracted by its solid financial performance and growth prospects. As the subscription period progresses, it will be interesting to see the final response from the market and the listing performance of the company.
