The much-anticipated Ratnaveer Precision Engineering IPO is set to open its doors on September 4, having garnered significant interest from anchor investors who injected Rs 49.5 crore into the offering. Each share was priced at Rs 98 during this phase. Although the Gray Market Premium (GMP) currently stands at Rs 50, market experts emphasize the importance of basing investment decisions on the company’s fundamentals rather than GMP signals.
Anchor Investor Participation
The company disclosed that it issued a total of 50,52,000 shares to six anchor investors at a per-share price of Rs 98. Among these investors, Coeus Global Opportunities Fund, Leading Light Fund VCC-The Triumph Fund, and Saint Capital Fund each acquired 10,20,450 shares, constituting 20.20% of the anchor investor share reservation.
Sixteenth Street Asian Gems Fund secured 15.15%, equivalent to 7,65,300 shares, while Societe Generale ODI received 14.15%, totaling 7,15,050 shares. Additionally, Societe Generale was allocated 10.10%, amounting to 5,10,300 shares.
Ratnaveer Precision Engineering IPO Details
The Ratnaveer Precision Engineering IPO will be accessible for subscription from September 4 to September 6. Investors can participate in the offering within the price range of Rs 93 to Rs 98 per share, with lot sizes set at 150 shares. The issue has allocated 50% to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 35% to retail investors. The share allotment is scheduled for September 11, and shares will be listed on NSE-BSE by September 14.
The IPO comprises 1.38 crore new shares valued at Rs 135.24 crore, each with a face value of Rs 10. An additional 30.40 lakh shares will be available for sale through the offer for sale (OFS) route, facilitated by promoter Vijay Ramanlal Shanghvi. Proceeds from the new shares will primarily address working capital requirements and general corporate purposes.
About Ratnaveer Precision Engineering
Ratnaveer Precision Engineering operates four manufacturing units in Gujarat. These units produce a range of products, including finishing sheets, washers, solar mounting hooks, and stainless steel (SS) pipes and tubes. The company’s third and fourth units are dedicated to the backward integration process, encompassing a melting unit and a rolling unit.
In terms of financial performance, the company reported a consolidated profit of Rs 9.5 crore in FY2022, marking an 18.7% year-on-year increase. During the same period, revenue surged by an impressive 74.6%, reaching Rs 426.9 crore. In the current financial year 2023, covering the initial five months from April to August, the company achieved a revenue of Rs 169.5 crore and a profit of Rs 8.9 crore. Approximately 77% of its revenue is attributed to domestic operations, with the remaining 23% generated through exports.