Ratnaveer Precision Engineering Limited is about to start its IPO, which begins on September 4, 2023. This IPO has generated a lot of interest among investors because the company is a big player in making stainless steel products. In this article, we will give you a complete overview of the Ratnaveer IPO. We’ll cover important dates, information about the company, the good and bad points, and a thorough review to help you decide if you should invest or not.
| IPO Open | September 4, 2023 |
| IPO Close | September 6, 2023 |
| IPO Price | ₹93 – ₹98 |
| Face Value | ₹10 |
| IPO Size | ₹165.03 Cr |
| Listing At | BSE, NSE |
| Lot Size | 150 |
Ratnaveer Precision IPO Timetable
| IPO Opens on | 04-Sep-23 |
| IPO Closes on | 06-Sep-23 |
| Basis of Allotment | 11-Sep-23 |
| Initiation of Refunds | 12-Sep-23 |
| Credit of Shares to Demat | 13-Sep-23 |
| Listing Date | 14-Sep-23 |
| Cut-off time for UPI mandate confirmation | 06-Sep-23 |
About Ratnaveer Precision Engineering Ltd
Ratnaveer Precision Engineering Limited, established in 2002, specializes in the manufacturing of stainless steel finished sheets, washers, solar roofing hooks, pipes, and tubes. With a diverse customer base spanning industries such as automotive, solar power, power plants, pharmaceuticals, and more, the company has carved out a significant presence in the stainless steel products sector.
The company operates four manufacturing units, with Unit-I and Unit-II located in GIDC, Savli, Vadodara, Gujarat, and dedicated to the production of SS finishing sheets, washers, and solar mounting hooks. Unit-III, situated in Waghodia, Vadodara, handles the steel melting process, transforming steel scrap into ingots, while Unit-IV, in GIDC, Vatva, Ahmedabad, focuses on rolling flat ingots into SS sheets, the raw material for SS washers.
Ratnaveer Precision Engineering is poised to expand its product line by introducing circlips and has secured land for this purpose
Ratnaveer Precision Engineering Ltd Financials
| Period Ended | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 |
| Assets | 255.92 | 308.63 | 389.05 |
| Revenue | 364.05 | 428.47 | 481.14 |
| Profit After Tax | 5.46 | 9.48 | 25.04 |
| Net Worth | 56.58 | 65.97 | 106.05 |
| Reserves and Surplus | 52.32 | 61.71 | 71.16 |
| Total Borrowing | 150.76 | 190.73 | 229.99 |
Objects of the Issue
The issue contains OFS where the funds would go to selling share holders and fresh issue. The net proceeds from the fresh issue would be used for the following objectives:
- Funding Working Capital Requirements: To ensure adequate liquidity for the company’s day-to-day operations.
- General Corporate Purposes: To meet various business needs and explore growth opportunities.
Positive Aspects of Ratnaveer Precision Engineering IPO:
- Diverse Customer Base: Ratnaveer Precision Engineering serves a wide array of industries. This diversity reduces its reliance on any single sector, making it more resilient to economic fluctuations.
- Strong Revenue Growth: Over time, the company has consistently demonstrated growth in its revenue. This suggests that it holds a strong position in the market and has the potential for further expansion.
- Commitment to Innovation: Ratnaveer Precision Engineering’s commitment to innovation is evident through its expansion efforts, including the introduction of circlips. This reflects a forward-thinking approach, which can be a positive sign for investors.
Risk Factors Associated with Ratnaveer Precision Engineering IPO:
- Raw Material Procurement: The absence of long-term agreements with raw material suppliers could disrupt production. This uncertainty in procurement poses a potential risk.
- Steel Price Volatility: The company is sensitive to fluctuations in steel prices, which can impact its profitability. This price volatility in the steel market is a risk that investors should consider.
- Regional Market Dependency: A significant portion of the company’s domestic sales originates from specific regions. Any adverse developments in these regions could pose risks to its business operations.
- Working Capital Intensity: Ratnaveer Precision Engineering’s business model involves high-volume, low-margin operations, which can make it vulnerable to cash flow challenges. This could affect its financial stability.
- Competitive Landscape: The industry has low barriers to entry, which means that new competitors could enter the market and potentially affect Ratnaveer’s market share. This competitive landscape is a concern to be aware of.
- Related Party Transactions: Past and potential related party transactions may raise concerns about conflicts of interest within the company. It’s important for investors to assess how these transactions might impact the company’s financial decisions and governance
Reviewing the Ratnaveer Precision Engineering IPO – Is it a Good Investment?
Pros:
- Diverse Customer Base:
- Steady Revenue Growth
- Expansion Efforts
- Commitment to Innovation
- Attractive IPO PricingCons:
- Raw Material Procurement Risk
- Sensitivity to Steel Price Fluctuations
- Regional Market Dependency
- High Working Capital Intensity
- Competitive Industry Landscape
- Potential Conflicts of Interest
Ratnaveer Precision Engineering IPO- GMP is – 50 Rs Today.
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