Ratnaveer Precision IPO

Ratnaveer Precision Engineering Limited

₹13,950 /150 sharesMinimum Investment

Ratnaveer Precision IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
BSE & NSE₹98.00₹123.00₹25.00 (25.51%)

Ratnaveer Precision IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
4 Sep ‘23 - 6 Sep ‘23₹13,950150₹93 - ₹98
Issue SizeIPO Doc
165.03Cr
RHP PDF

Subscription Status As on Invalid Date

  • Qualified Institutional Buyers
    133.05x
  • Non-Institutional Investor
    135.20x
  • Retail Individual Investor
    53.96x
  • Employees
    0.00x
  • Total
    93.97x

About Ratnaveer Precision

Incorporated in 2002, Ratnaveer Precision Engineering Limited specializes in manufacturing stainless steel (SS) items like finished sheets, washers, solar roofing hooks, pipes, and tubes. Initially, the company began by producing SS washers but later expanded to crafting SS finishing sheets, SS solar roofing hooks, and SS tubes and pipes. The company markets its products both domestically and internationally. It sells to manufacturers, traders/stockists, and end customers within the domestic market. Conversely, it supplies its products in the international market through traders/stockists. Operations are conducted across four manufacturing units. Two units (Unit-I and Unit-II) are situated at GIDC, Savli, Vadodara, Gujarat. Another unit (Unit-III) operates in Waghodia, Vadodara, Gujarat, while the final unit (Unit-IV) is located at GIDC, Vatva, Ahmedabad, Gujarat. The products manufactured by the company find application across various industries, including automotive, solar power, wind energy, power plants, oil & gas, pharmaceuticals, sanitary & plumbing, instrumentation, electromechanics, architecture, building & construction, electrical appliances, transportation, kitchen appliances, and chimney liners. These products serve both commercial and residential sectors.;
Parent Organisation
Ratnaveer Precision Engineering Limited
Founded
2002
Managing Director
Mr. Vijay Ramanlal Sanghavi

Strengths & Risks

  • Ratnaveer Precision operates a streamlined backward integration process that efficiently recycles manufacturing waste into reusable raw materials. It ensures minimal waste and maximizes resource utilization, bolstering cost-effectiveness.
  • Over time, the company has evolved from a single-product manufacturer into a diverse multi-product company. Their product range has 2,500 SKUs of stainless steel washers.
  • The company's operational revenue surged from Rs. 82.12 crore in 2011 to Rs. 479.75 crore in 2023, indicating a 14.54% CAGR over the past 13 years.
  • Their after-tax profit increased from Rs. 1.54 crore in 2011 to Rs. 25.04 crore in 2023.
  • The company houses an internal Research and Development (R&D) facility at Unit I, dedicated to crafting tools and molds for their products.
  • The company has been actively engaged in exports. As of March 31, 2023, they have a global presence, exporting their products to countries like Germany, the UK, Spain, the Netherlands, and more.
  • Ratnaveer Precision lacks long-term agreements with its raw material suppliers, which may lead to difficulties in obtaining the desired quality and quantity of materials promptly and at reasonable costs.
  • The steel industry's pricing is susceptible to market demand, volatility, and economic conditions. Fluctuations in steel prices could significantly harm the company's business and financial condition.
  • The company heavily relies on a few customers for most of its revenues. Moreover, the company does not engage in long-term arrangements with its customers, making it vulnerable to adverse effects if these existing arrangements are disrupted.
  • In the year ending March 31, 2023, approximately 69.16% and 11.63% of domestic sales revenue came from the western and northern zones, respectively. Any adverse developments in these markets could harm Ratnaveer Precision's business.
  • The company operates in a high-volume, low-margin business. Sudden price fluctuations in traded goods or unexpected anomalies in business operations.
  • The company experienced negative cash flows in its operating, investing, and financing activities in the past three financial years.
  • The company has not obtained the necessary approval from the competent authority for a portion of its Unit-I factory premises, measuring approximately 1,300 square meters.
  • As of March 31, 2023, the company had total borrowings amounting to Rs. 229.99 crore, which includes secured loans from banks and financial institutions.
  • All production units are concentrated in Gujarat, making the company susceptible to localized social unrest, natural disasters, service breakdowns, or regional production disruptions.
  • The company has previously been non-compliant with environmental law requirements, and there is no assurance of timely or future compliance.
  • The company has a high debt-equity ratio, being 2.17%, 2.89%, and 2.67% for 2023, 2022, and 2021, respectively.
  • The company has unsecured loans amounting to Rs. 10.23 crore from related parties, which can be recalled at any time.

Financials

*All values are in Rs. Cr
No Graph Data To Display

Application details

Apply asPrice bandApply upto
Regular93 - 98₹2 Lakh
High Networth Individual93 - 98₹2 - 5 Lakh
For Ratnaveer Precision IPO, eligible investors can apply as Regular.
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