Ratnaveer Precision Engineering IPO opens Monday. What GMP signals ahead of subscription?
The IPO, which closes on September 6, comprises fresh equity of 1.38 crore shares and an offer for sale (OFS) of 30.4 lakh shares. Under the OFS, promoter Vijay Ramanlal Sanghavi will sell 30.4 lakh shares.
The company has fixed a price band of Rs 93-98 per share and at the upper end, it is planning to raise Rs 165 crore.
About 50% of the offer is set aside for qualified institutional buyers, 15% is reserved for non-institutional investors, and 35% for the retail category.
Investors can bid for a minimum of 150 shares in one lot and in multiples thereafter.
Ratnaveer Precision Engineering is a stainless steel product manufacturer focused on producing finished sheets, washers, solar roofing hooks, pipes, and tubes. Stainless steel is a value-added product with high corrosion-resistant properties.
Higher levels of chromium and additions of other alloy elements enhance the corrosion resistance.
Compared to traditional steel, stainless steel has a higher resistance to corrosion, superior aesthetic finish, and higher life span.
These features have helped in increasing the popularity of stainless steel across the world.
For the year ending March 2023, the company clocked a total income of Rs 481 crore and a profit after tax of Rs 25 crore in the same period. EBITDA for the year stood at Rs 47 crore, with margins of 9.8%.
In FY23, the domestic turnover was Rs 387 crore, while that from exports stood at Rs 92 crore.
Unistone Capital is acting as the sole book-running lead manager to the issue, while Lin Intime India is the registrar.
The share allotment will likely be finalised in September and the tentative date for listing is September 14.
