September 4, 2023
Hey there, investors! The Ratnaveer Precision Engineering IPO is up and running, aiming to raise a substantial Rs 165 crore. It kicked off on September 4th and will be open until September 6th, giving you a three-day window to decide if you want in on this opportunity. Let's break it down and see if it's worth your investment.
What's on Offer?
In this IPO, Ratnaveer Precision Engineering is offering shares at a price range of Rs 93 to Rs 98 each, with a lot size of 150 shares. They're putting up 1.38 crore fresh equity shares, and the company's promoter, Vijay Ramanlal Sanghavi, is offloading 30.40 lakh equity shares through the offer-for-sale (OFS) route. The money they raise will be used for day-to-day business needs and other general corporate purposes.
Confident Start with Anchor Investors
Before this IPO, Ratnaveer Precision Engineering got off to a good start by raising Rs 49.5 crore from six anchor investors. They were eager to get in on the action and bought 50,52,000 equity shares at Rs 98 per share. Among these investors were Societe Generale, Sixteenth Street Asian Gems Fund, Saint Capital Fund, Coeus Global Opportunities Fund, and Leading Light Fund VCC - The Triumph Fund.
Getting to Know Ratnaveer Precision Engineering
Ratnaveer Precision Engineering, born in 2002, specializes in making all sorts of stainless steel products like sheets, washers, solar roofing hooks, pipes, and tubes. They've got four manufacturing units in Vadodara and Ahmedabad, Gujarat, and they serve a wide range of industries, from automotive to pharmaceuticals.
Expert Insights
Brokerage firms have given a thumbs up to Ratnaveer Precision Engineering, praising their solid business foundation and fair valuations. They point out the company's consistent growth in revenue, improving margins, and strong financial performance. However, they also sound a note of caution because the industry is crowded with competitors, including many small, unorganized players.
Financial Health
For the financial year that ended on March 31, 2023, Ratnaveer Precision Engineering reported a net profit of Rs 25.04 crore and total revenue of Rs 481.14 crore. That's quite an improvement compared to the previous fiscal year when they had a net profit of Rs 9.48 crore and Rs 428.47 crore in revenue.
Who Gets What
This IPO reserves 50 percent of the shares for qualified institutional bidders, 15 percent for non-institutional investors, and the remaining 35 percent for retail investors.
Final Thoughts
While Ratnaveer Precision Engineering looks promising with its growth and financial performance, it's crucial to keep an eye on the competition and the challenges it might bring. The IPO is priced at a P/E of 13 times based on FY2023 earnings, which seems reasonable compared to similar companies. However, experts advise a cautious approach due to the industry's fragmented nature.
As always, it's wise to consult a trusted financial advisor before making any investment decisions. The IPO is tentatively scheduled to debut on September 14, 2023, on both BSE and NSE. Stay tuned for updates as this IPO journey unfolds.
Disclaimer: This article is here to help you understand, but it's not investment advice. Always consult a financial expert before making investment choices.