Gujarat-based stainless steel products maker Ratnaveer Precision Engineering has fixed the price band for its initial public offering at Rs 93-98 per share.
The book-built offering will open on September 4.
The company is planning to raise Rs 165.03 crore via public issue, at the upper price band, which comprises a fresh issuance of shares worth Rs 135.24 crore, and an offer-for-sale (OFS) of Rs 29.79 crore by promoter Vijay Ramanlal Sanghavi.
The anchor book portion of the IPO will open for a day on September 1, while the offer will close on September 6, 2023.
Half of the offer size is reserved for qualified institutional buyers (QIB) and up to 60 percent of the QIB portion is reserved for anchor book. Further, 15 percent of the total issue is reserved for high networth individuals and the remaining 35 percent for retail investors.
Investors can bid for a minimum of 150 equity shares and in multiples of 150 shares thereafter. The minimum application size for retail investors would be Rs 14,700 for a single lot (150 shares) and the maximum investment by them will be Rs 1,91,100 for 13 lots (1,950 shares), at the upper price band. Retail investors are allowed to invest up to Rs 2 lakh in the IPO.
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High networth individuals can apply for a minimum of 2,100 shares worth Rs 2,05,800 and their maximum investment will be Rs 9,99,600 for 10,200 shares.
Ratnaveer Precision Engineering will make use of net fresh issue proceeds for working capital requirements of Rs 85 crore. The remaining amount will be used for general corporate purposes.
The stainless steel products maker with four units manufactures finished sheets, washers, solar roofing hooks, pipes and tubes, catering to several industries such as automotive, power, oil & gas, pharmaceuticals, electromechanics, building & construction, electrical appliances, and kitchen appliances.
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The financial performance of the company remained strong in the past years as net profit in the year ended March FY23 at Rs 25 crore increased by 164.3 percent compared to the previous year on robust operating performance. EBITDA (earnings before interest, tax, depreciation and amortisation) surged 65.7 percent to Rs 45.6 crore in FY23 and margin rose by 306 bps to 9.51 percent compared to FY22.
Revenue from operations during the same period jumped 12.4 percent to Rs 480 crore. About 80 percent of its business comes from the domestic market and the remaining via exports.
Ratnaveer Precision finalise the basis of allotment of IPO shares by September 11 and the equity shares will be credited to demat accounts of eligible investors by September 13.
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The listing of its shares will take place on the bourses on September 14, as per the IPO schedule.
This will be the eighth initial public offering in the second half of the current calendar year, after SBFC Finance, Concord Biotech, TVS Supply Chain Solutions, Pyramid Technoplast, Aeroflex Industries, Vishnu Prakash R Punglia, and Rishabh Instruments.
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