A maker of stainless steel goods, Ratnaveer Precision Engineering Limited specializes in creating finished sheets, washers, solar roofing hooks, pipes, and tubes. A product with great value and high corrosion resistance is stainless steel. Ratnaveer Precision Engineering IPO will hit the stock market in September 2023.
Table of Contents
About Ratnaveer Precision Engineering
The corrosion resistance is improved by adding additional alloy elements & increasing the chromium content. Stainless steel offers a longer lifespan, a higher resistance to corrosion, and a better visual finish than ordinary steel.
The appeal of stainless steel has grown as a result of these characteristics.The largest stainless steel product produced worldwide is cold rolled flat products, followed by hot rolled coils and steel wire rods and bars.
Approximately 47% of all stainless-steel trade worldwide consists of cold-rolled flat products. Another SS intermediary product that is traded internationally is hot coils, semisflat, semis long, hot bar/wire rod, cold bar/wire, hot plate, & hot sheet. By including circlips into the product range, they hope to increase the variety of washers they offer.
Production Plants
Ratnaveer Precision Engineering have four production facilities, two of which are at GIDC, Savli, Vadodara, Gujarat (Unit-I & Unit-II), one at Waghodia, Vadodara, Gujarat (Unit-III), and one at GIDC, Vatva, Ahmedabad, Gujarat (Unit-IV).
A combination of the strategic placement of their manufacturing facilities and the accessibility of transportation, their products may be transported easily. At Unit I, finishing sheets, washers, and solar mounting hooks are produced.
At Unit II, stainless steel pipes and tubes are produced. Unit III is the melting unit where we melt steel scrap and make it into steel ingots, and Unit IV is the rolling unit where flat ingots are further processed to turn them into sheets. These two units are dedicated to the backward integration process.
Business Model
One of their main advantages is that they are one of the few businesses with a backward integration methodology, which has enabled them to maximize the returns on their investments.
While two of their units (Unit I & Unit II) are devoted to producing the goods that are made available to customers, units III and IV are devoted to processing the waste products created during product manufacturing & turning them back into raw materials for goods.
Their products are used in a variety of industries, such as the automotive, wind, solar, power, oil & gas, pharmaceutical, sanitary & plumbing, instrument, electromechanical, architectural, building & construction, electrical, kitchen, and transportation industries. Their goods are sold both domestically & abroad and are used in the commercial & residential sectors.
Ratnaveer Precision Engineering IPO
Ratnaveer Precision Engineering Limited, headquartered in Gujarat has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 17,400,000 equity shares on 26 January 2023.
The offer includes a fresh issue of 15,300,000 equity shares and there is offer for sale (OFS) of 2,100,000 equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.
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- Initial Public Offering
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Aug-22 | 31-Mar-22 | 31-Mar-21 | 31-Mar-20 | ||
| Total Assets | 333.96 | 308.89 | 255.92 | 242.44 | |
| Total Revenue | 169.91 | 428.47 | 364.05 | 298.94 | |
| Profit After Tax | 8.93 | 9.54 | 5.46 | 7.20 | |
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 2.09 | 2.09 | 3 |
| Financial Year 2021 | 1.59 | 1.59 | 2 |
| Financial Year 2022 | 2.77 | 2.77 | 1 |
| Weighted Average | 2.26 | 2.26 | |
| 31 Aug 2022 | 2.59 | 2.59 |
Objects of the Issue
- Repayment/prepayment of debt.
- General corporate objectives and organic growth.
Basis of the offer
Ratnaveer Precision Engineering limited feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:
- Their vast product selection and varied design options enable us to fulfill a wide range of end-use applications.
- Their seasoned and results-driven promoter.
- They have a young and experienced management team, as well as a committed workforce base.
- Their international market presence is growing.
- Their manufacturing facilities are strategically located, with a primary focus on quality.
- Their products’ excellence is guaranteed and quality control.
- Continuous investment and R&D lay the stage for new product development.
Ratnaveer Precision Engineering Peer Comparison
There are no similar listed firms that do a similar business to the Company. As a result, it is impossible to compare the Company’s P/E ratio to that of its industry peers.
Ratnaveer Precision Engineering IPO Details
| IPO Opening Date | September 2023 |
| IPO Closing Date | September 2023 |
| Issue Type | Book Building |
| Face Value | 10 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Amount | – |
| Listing At | BSE, NSE |
| Issue Size | 17,400,000 Equity Shares |
| Fresh Issue | 15,300,000 Equity Shares |
| Offer for Sale | 2,100,000 Equity Shares |
Ratnaveer Precision Engineering IPO Date
Ratnaveer Precision Engineering Limited IPO opening date is September 2023, and the closing date is September 2023. The Ratnaveer Precision Engineering issue may list in September 2023.
| IPO Opening Date | September 2023 |
| IPO Closing Date | September 2023 |
| Basis of Allotment Date | September 2023 |
| Initiation of Refunds | September 2023 |
| Credit of Shares to Demat Account | September 2023 |
| IPO Listing Date | September 2023 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 35 | Minimum 1 lot based on availability |
Ratnaveer Precision Engineering IPO Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Ratnaveer Precision Engineering IPO.
Ratnaveer Precision Engineering IPO GMP
Ratnaveer Precision Engineering Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
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Ratnaveer Precision Engineering Limited IPO Review
Ratnaveer Precision Engineering Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Ratnaveer Precision Engineering IPO is good or bad.
Ratnaveer Precision Engineering IPO Risk
- Steel pricing is affected by market demand, volatility, and economic factors. Steel price fluctuations may have a materially negative impact on their business, results of operations, prospects, and financial conditions.
- Certain legal proceedings have been initiated against the Company (Ratnaveer Precision), its Promoter, and its Directors. Any negative outcome in such actions could harm their reputation, business, financial position, results of operations, and cash flows.
- Their backward integration processes are set up at units that are on leave or have a license. If they are unable to extend these leave and license agreements, they may be forced to suspend or outsource the backward integration procedures, which may have a negative impact on their business, operating results, cash flows, and profitability.
Other Threats
- Their business requires a lot of working capital. If they have insufficient cash flows from operations or are unable to borrow to satisfy their working capital needs, it may have a material and negative impact on their business.
- In the last three fiscal years, they have experienced negative cash flows as a result of their operating activities. Any future negative cash flows would have a detrimental impact on their financial condition.
- They have not gotten the necessary authorisation from the appropriate authorities for the construction of a component of their factory premises at Unit-I.
- Their inability to collect receivables from customers or their customers’ failure to pay could result in a reduction in profits and a disruption in cash flows.
Ratnaveer Precision Engineering IPO Brokerage views
Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Ratnaveer Precision Engineering IPO:
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Ratnaveer Precision Engineering Limited IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| September 2023 | 1 | |||||
| September 2023 | 2 | |||||
| September 2023 | 3 |
Ratnaveer Precision Engineering Limited Management
Their Promoter & MD, Mr. Vijay Ramanlal Sanghavi, has over 20 years of experience in the steel & stainless steel industries.
He has played a key role in the achievement of numerous milestones, such as the establishment of a dedicated unit in 2018 for the production of SS Tubes & Pipes (Unit II) and an increase in operating revenue from almost $1,595 million in Fiscal 2013 to approximately $4,269 million in Fiscal 2022.
Under his guidance, their Company has garnered awards from reputable international organizations including the Engineering Export Promotion Council, Marsh & McLennan, and Dun & Bradstreet. They have a solid management team with extensive business knowledge.
The company’s primary business operations, including production, finance, sales, & HR are crucial to the smooth daily operations.
Ratnaveer Precision Engineering Limited‘ Promoters
- Mr. Vijay Ramanlal Sanghavi
Principal Shareholders’s Holding
| Pre Issue Share Holding | 83.60% |
| Post Issue Share Holding |
Ratnaveer Precision Engineering Limited Prospectus
Contact Details
Ratnaveer Precision Engineering Limited
Plot no. E-77, G.I.D.C.,
Savli (Manjusar), Vadodara –
391 775, Gujarat, India.
Email:[email protected]
Telephone: +91 8487878075
Website: www.ratnaveer.com
Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai 400 083
Maharashtra, India
Tel: + 91 22 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- Unistone Capital Private Limited
We hope we are able to answer all your questions about Ratnaveer Precision Engineering IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
Profit must do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
Ratnaveer Precision Engineering Limited IPO Opening Date?
Ratnaveer Precision Engineering Limited IPO will open in September 2023.
Ratnaveer Precision Engineering Limited IPO Listing Date?
Ratnaveer Precision Engineering Limited IPO will list in September 2023.
Ratnaveer Precision Engineering IPO GMP Today?
Ratnaveer Precision Engineering IPO Grey Market Premium is INR 0 .
Ratnaveer Precision Engineering Limited IPO Allotment Date?
Ratnaveer Precision Engineering Limited IPO basis of allotment will be in September 2023.
Lot size for Ratnaveer Precision Engineering Limited IPO?
Lot size for Ratnaveer Precision Engineering Limited IPO is 0.
