Ratnaveer Precision Engineering IPO: A Guide for Investors

Date : 04/09/2023
Read: 4 mins

Want to know the essential insights before bidding on Ratnaveer Precision Engineering's IPO? Read this article for the key factors you need to know for a prosperous journey.

Stainless steel products maker Ratnaveer Precision Engineering is set to make history as the first company to float an initial public offer in September 2023. The Gujarat-based company aims to raise Rs 165.03 crore via its maiden public issue, at the upper price band. If you’re considering investing in this IPO, it’s important to know the key factors that can help you make an informed decision. In this article, we’ll take a closer look at what you need to know before you bid.

Highlights:

Stainless Steel Product Manufacturer
Impressive FY23 Financial Growth
IPO Aims to Raise Rs 165.03 Crore
Promoters Hold 86.3% Stake

Also Read: Are You Keeping An Eye On These Active SME and Mainline IPOs?

Investors should take note of Ratnaveer Precision Engineering's impressive FY23 performance, with a remarkable 164.3% surge in net profit and 65.7% growth in EBITDA. The company has shown solid financial improvements. However, remember to stay vigilant amid the steel industry's unpredictability. Make informed choices before investing.

What does Ratnaveer Precision Engineering company do?

Ratnaveer Precision Engineering is a stainless-steel powerhouse, turning out finished pipes, sheets, solar roofing hooks, washers and tubes. Their products are in high demand thanks to stainless steel's value-added properties, like corrosion resistance

What has been the financial performance of the company?

Key points of financial performance are given below:

FY23 net profit surged by 164.3% to Rs 25 crore.
EBITDA grew 65.7% to Rs 45.6 crore.
Revenue increased by 12.4% to Rs 480 crore.
80% domestic revenue, 20% exports.
Improved return on capital employed (12.62% from 9.67%).
Enhanced return on equity (29.12% from 15.46%).
Reduced debt-to-equity ratio (2.17 in FY23 from 2.89).

What are the important factors of the issue?

The IPO opens for subscription on September 4 and closes on September 6.

The price band is Rs 93-98 per share.
The company plans to raise Rs 165.03 crore.
The Grey Market Price of the issue is Rs. 50 (as on 4-Sep-2023).
The IPO comprises a fresh issue of 1.38 crore shares and an offer for-sale of 30.4 lakh shares.
The company has reserved 50% of the issue for QIBs, 15% for HNIs, and 35% for retail investors.
The minimum bid size is 150 shares and the maximum bid size for retail investors is Rs 2 lakh.
Ratnaveer Precision Engineering mopped up Rs 49.5 crore from six anchor investors on September 1.
Promoters Vijay Ramanlal Sanghavi and his wife Seema Vijay Sanghavi hold 86.3% stake in the company.

What are the risks associated with the company?

The company is exposed to risks from fluctuations in steel prices, customer concentration, regional concentration, working capital intensity, low margins, negative cash flows, and competitive intensity.

Also Read: IPO Valuation: How is the IPO price decided?

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.