Shares of Ramdevbaba Solvent, a company engaged in manufacturing, distribution, marketing, and selling of physically refined rice bran oil, made a debut on the NSE SME platform with a premium of 31.8%. The stock listed at Rs 112, compared to its issue price of Rs 85.
The IPO of Ramdevbaba Solvent witnessed a robust response from investors, with an oversubscription of over 100 times. The IPO was entirely a fresh equity issue of 59.13 lakh shares.
The net proceeds from the public offer will be utilized by Ramdevbaba Solvent for several purposes. These include setting up a new manufacturing facility, repayment of debt, funding working capital requirements, and other general corporate purposes.
Ramdevbaba Solvent, known for its manufacturing and selling of rice bran oil, sells its products to FMCG companies like Mother Dairy Fruit and Vegetable Private, Marico, and Empire Spices and Foods. It also markets and sells rice bran oil under its own brands ‘Tulsi’ and ‘Sehat’ through its distributors.
Rice bran oil, extracted from the hard outer brown layer of rice called ‘bran’, is popular for its high smoke point and mild flavor, making it ideal for high-temperature cooking methods such as stir-frying and deep-frying. It has an ideal balance of Polyunsaturated Fats (PUFA) and Monounsaturated Fats (MUFA) in almost a 1:1 ratio.
Apart from rice bran oil, Ramdevbaba Solvent also produces De-oiled Rice Bran (DORB), which is a by-product in the extraction of Rice Bran Oil. The company sells DORB as cattle feed, poultry feed, and fish feed across various states in India.
For the period ended December 2023, Ramdevbaba Solvent reported revenues of Rs 463 crore and a net profit of Rs 8.3 crore.
Choice Capital Advisors acted as the lead manager to the IPO, and Bigshare Services served as the registrar.
