Ratnaveer Precision Engineering Ltd. is among the most prominent stainless steel manufacturers in the country. Their robust business caters to some of the major sectors, contributing largely to the country’s economy.
Moreover, the domestic stainless steel market is expected to grow at an annual rate of 8.5% in the years to come. Therefore, if you are looking forward to leveraging this sectoral growth, you can consider investing in Ratnaveer Precision Engineering Ltd. IPO. Read to know more about the same.
Table of Content
IPO Details
Ratnaveer Precision Engineering Ltd. is going public to raise Rs. 165.03 crore from the public. Listed below are the details of this IPO:
| IPO opening date | September 4, 2023 |
| IPO closing date | September 6, 2023 |
| Total issue size | 16,840,000 shares (Rs. 165.03 crore approx) |
| Fresh issue size | 13,800,000 shares (Rs. 135.24 crore approx) |
| OFS size | 3,040,000 shares of Rs. 10 (Rs. 29.79 crore approx) |
| Issue type | Book Built Issue IPO |
| Listing at | BSE, NSE |
| Face value | Rs. 10 per share |
| Price range | Rs. 93 to Rs. 98 per share |
| Lot size | 150 shares |
About the Company
Ratnaveer Precision Engineering Ltd is among the leading stainless steel manufacturers in the country, involved in the production of pipes, tubes, finished sheets, solar roofing hooks, washers etc. The products of the company contribute largely to multiple sectors such as automotive, building and construction, oil & gas, sanitary & plumbing and many more.
It has over 2,500 SKUs in steel washers and it intends to expand its product portfolio continuously by engaging with consumers directly. It enables them to design and improvise their products according to market requirements.
Also Read: IPO investment strategy: Tips for investing in an IPO
IPO Tentative Timetable
If you intend to invest in Ratnaveer Precision Engineering Ltd, check out its IPO timetable:
| Anchor allocation date | Friday, 1 September, 2023. |
| IPO opening date | Monday, 4 September 2023 |
| IPO closing date | Wednesday, 6 September 2023 |
| Cut-off time for UPI mandate | 5 p.m. on September 6, 2023 |
| Basis of allotment | Monday, 11 September 2023 |
| Date of refund initiation | Tuesday, 12 September 2023 |
| Credit of shares to Demat | Wednesday, 13 September 2023 |
| Listing date | Thursday, 14 September 2023 |
IPO Lot Size
Here are the lot sizes for Ratnaveer Precision Engineering IPO for different investor categories:
| Application type | Number of lots | Amount |
| Minimum (retail investors) | 1 (150 Shares) | Rs.14,700 |
| Maximum (retail investors) | 13(1950 Shares) | Rs. 1,91,100 |
| Minimum (S-HNI) | 14 (2100 Shares) | Rs. 2,05,800 |
| Maximum (S-HNI) | 68 (10,200 Shares) | Rs. 9,99,600 |
| Minimum (B-HNI) | 69 (10,350 Shares) | Rs. 10,14,300 |
Company Financials
Here is the financial summary of Ratnaveer Precision Engineering Ltd. (Note that all figures are in Rs. millions except EPS).
| Parameters As Per the Year Ending on | 31st March 2022 | 31st March 2021 | 31st March 2020 |
| Total Assets | 3,088.89 | 2,559.24 | 2,424.41 |
| Total Liabilities | 2427.82 | 1994.42 | 1913.75 |
| Total Expenses | 4,150.22 | 3,544.56 | 2,886.92 |
| Total Revenue | 4,284.72 | 3,640.51 | 2,989.35 |
| Profit After Tax | 95.35 | 54.62 | 71.95 |
| EBITDA | 290.59 | 243.21 | 265.64 |
| Earnings per share (basic and diluted) | 2.77(basic) 2.77(diluted) | 1.59 (basic)1.59 (diluted) | 2.09 (basic)2.09 (diluted) |
Strengths
Here are some of the notable strengths of this company:
- Ratnaveer Precision Engineering Ltd has grown from a single product manufacturing company to a company with multiple SKUs. Their revenue has grown with an annual growth rate of 14.73% and their profit after tax grew at a rate of 16.40% over the last 12 years.
- The company has a wide array of SKUs including manufacturing of SS washers with more than 2500 varieties of the same. This wide product portfolio enables them to cater to specific consumer requirements.
- Ratnaveer Precision Engineering Ltd has a completely separate research and development facility where they are continuously developing tools and moulds for their products. Their dedicated R&D team is focused on developing innovative products by incorporating cutting-edge technologies to enhance the customer experience and satisfaction.
- The company has a dedicated team for the purpose of inspecting the quality of its finished products based on various parameters. Moreover, the raw material also undergoes several stages of quality checks.
Risk Involved
Almost all businesses are composed of internal or external risk factors up to a certain extent. Here are some of the risks associated with Ratnaveer Precision Engineering Ltd:
- This company does not have long-term agreements with their raw materials suppliers. Therefore, the inability to procure raw materials in sufficient quantities in a timely manner can largely affect its profitability.
- As a major portion of the revenue is from steel products, fluctuations in steel prices can also be a major threat to business operations.
- There are certain pending lawsuits and litigations in the name of this company’s promoter and directors. Therefore, any adverse effect on them can negatively impact the overall business of this company.
Summary
Ratnaveer Precision Engineering Ltd. primarily deals with the manufacturing of stainless steel products and services. Their robust business contributes to some of the major sectors of our economy.
The company is preparing for an IPO to raise Rs 165.03 crore to fund its rising working capital requirements.
The IPO offer lasts till Wednesday, 6 September 2023. If you are planning to invest in this IPO make sure to go through the RHP carefully.
