The initial public offer (IPO) of Ratnaveer Precision Engineering, a company specializing in the production of stainless steel products, has received a strong response from investors. On the second day of the IPO, the overall subscription was 21.8 times the issue size. The subscription from non-institutional buyers was the highest at 42.23 times, followed by retail investors at 23.08 times. Demand from qualified institutional buyers gained momentum in the latter half of the day, with the category subscription at 4.2 times.
Ratnaveer’s IPO is a combination of a fresh issue of 1.38 crore shares and an offer for sale (OFS) of 30.4 lakh scrips. The OFS portion will see promoter Vijay Ramanlal Sanghavi selling 30.4 lakh shares, while the fresh issue will provide the company with net proceeds to fund its working capital requirements and general corporate purposes.
The IPO has been priced in the range of Rs 93-98 per share. Investors can bid for a minimum of 150 shares in one lot and in multiples thereafter.
Ratnaveer Precision Engineering’s products are used across diverse industries, including automotive, solar power, wind energy, and power plants. The company plans to expand its portfolio of stainless steel washers by adding circlips to its product line. Currently, it offers over 2500 SKUs of stainless steel washers, including inner ring washers, spring washers, nord lock washers, and retaining rings of different sizes and specifications.
In the financial year ending March, Ratnaveer reported a total income of Rs 481 crore and a profit after tax of Rs 25 crore. The company’s EBITDA for the year stood at Rs 47 crore, with margins of 9.8%. In FY23, the company’s domestic turnover was Rs 387 crore, while that from exports stood at Rs 92 crore.
Unistone Capital is acting as the sole book running lead manager to the IPO, while Lin Intime India is the registrar.
Overall, the strong investor response to Ratnaveer Precision Engineering’s IPO highlights the positive sentiment towards the company. With its diversified product offerings and steady financial performance, the company is well-positioned for future growth in the stainless steel products industry.
