Ratnaveer IPO Day 2: Subscription, GMP And Other Details; Should you Buy?

Ratnaveer IPO Subscription Day 2: Stainless steel products maker Ratnaveer Precision Engineering will be the first to float an initial public offer in September 2023. The initial public offering (IPO) of engineering company Ratnaveer Precision Engineering Limited has opened for subscription. It will close on September 6.

Ratnaveer IPO raised nearly Rs 49.5 crore from anchor investors on Friday, September 1. Societe Generale, Saint Capital Fund, Sixteenth Street Asian Gems Fund, Coeus Global Opportunities Fund, and Leading Light Fund VCC – The Triumph Fund were among the domestic and foreign investors who took part in the anchor book issue.

Ratnaveer IPO Subscription Status

Ratnaveer IPO was subscribed 5.77 times on day 1. Ratnaveer IPO’s retail investors portion was subscribed 7.65 times, NII portion was subscribed 9.03 times, and QIBs portion was subscribed 5%.

Ratnaveer IPO Price Band

The price band for the offer has been fixed at Rs 93-98 per share. The market capitalisation at the upper price band stands at Rs 475.3 crore.

Ratnaveer IPO Issue Size

The Gujarat-based company intends to raise Rs 165.03 crore from the maiden public issue, at the upper price band. The IPO comprises fresh issue of 1.38 crore equity shares, amounting to Rs 135.24 crore, and an offer-for-sale (OFS) of 30.4 lakh shares, worth Rs 29.79 crore, by promoter Vijay Ramanlal Sanghavi.

The firm mopped up Rs 49.5 crore from six anchor investors, including Societe Generale, Sixteenth Street Asian Gems Fund, Saint Capital Fund, Coeus Global Opportunities Fund and Leading Light Fund VCC – The Triumph Fund, on September 1.

Ratnaveer IPO Objectives of the Issue

Ratnaveer Precision Engineering will use the net fresh issue proceeds for working capital requirements amounting to Rs 85 crore, and general corporate purposes, while the OFS money will go to selling shareholder.

Ratnaveer IPO Lot Size

The minimum bid can be made for 150 equity shares and in multiples of 150 shares thereafter. Retail investors can invest a minimum of Rs 14,700 for a single lot of 150 shares and their maximum investment will be Rs 1,91,100 for 13 lots (1,950 shares), at upper price band. Retail investors are allowed to invest up to Rs 2 lakh in the IPO.

High networth individuals with the category of minimum-maximum investment limit of Rs 2-10 lakh, can make an application for a minimum 2,100 shares worth Rs 2,05,800 and at the maximum, they can invest for 10,200 shares worth Rs 9,99,600.

The minimum bid can be made for 150 equity shares and in multiples of 150 shares thereafter. Retail investors can invest a minimum of Rs 14,700 for a single lot of 150 shares and their maximum investment will be Rs 1,91,100 for 13 lots (1,950 shares), at upper price band. Retail investors are allowed to invest up to Rs 2 lakh in the IPO.

High networth individuals with the category of minimum-maximum investment limit of Rs 2-10 lakh, can make an application for a minimum 2,100 shares worth Rs 2,05,800 and at the maximum, they can invest for 10,200 shares worth Rs 9,99,600.

Ratnaveer IPO – About The Company

The stainless steel product manufacturer with four manufacturing units in Gujarat is focused on the production of finished sheets, washers, solar roofing hooks, pipes and tubes. Stainless steel is a value-added product with high corrosion resistant properties.

The company provides products to several industries including automotive, power, oil and gas, pharmaceuticals, electromechanics, building & construction, electrical appliances, and kitchen appliances.

Ratnaveer IPO Share Allotment & Listing

Ratnaveer Precision in consultation with the NSE will finalise the basis of allotment of IPO shares by September 11 and the equity shares will be transferred to demat accounts of successful investors by September 13. The refunds will be credited to bank accounts of unsuccessful participants by September 12.

The trading in its equity shares will commence on the BSE and NSE with effect from September 14, as per the IPO schedule.

Ratnaveer IPO GMP Today

According to market observers, Ratnaveer Precision Engineering Limited shares are available at a premium of Rs 50 in grey market today.

Ratnaveer IPO – Should You Buy Or Not?

Giving ‘subscribe’ tag to the book build issue, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Ratnaveer Precision Engineering Limited (“RPEL”) is a stainless steel (“SS”) 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.”

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