IPO listed on 11 Sep'23
Ratnaveer Precision Engineering Ltd
Minimum Investment
₹ 14,700 / 150 shares
Grey market premium
₹ 48 (49% premium)
Issue price
₹ 98
Listing price
₹ 123
% since launch
Listing on
September 11, 2023
Our Verdict:
Subscribe
- The company has created a niche place in the market for cold-rolled Stainless Steel products, which are in high demand worldwide. It has shown a consistent and impressive growth in both revenue and net earnings. From a valuation standpoint too, the IPO appears to be reasonably priced at a PE multiple of 19x on post-issue capital.
- Additionally, the grey market premium (GMP) for the issue, often used as a gauge for investor sentiment, indicates a premium listing.
- Taking these aspects into account, we recommend investors to “Subscribe” to this issue.
About the company
Founded in
20 Feb'02
Managing director
Vijay Sanghavi
- Ratnaveer Precision Engineering Ltd (RPEL) specializes in the manufacturing of stainless steel products, including finished sheets, washers, solar roofing hooks, and pipes and tubes.
- With four manufacturing facilities in Gujarat, the company serves a diverse range of industries. These include automotive, solar and wind energy, power generation, oil and gas, pharmaceuticals, plumbing, instrumentation, electromechanics, construction, electrical devices, transportation, kitchenware, etc.
STRENGTHS
- Impressive Financial Performance: Between FY21-23, RPEL exhibited a remarkable growth with a CAGR of 15% in Revenue, 39% in EBITDA, and 114% in Net Profit.
- Positive Trends: The company's Debt:Equity ratio has been on a downward trajectory, decreasing from 2.67 in FY21 to 2.17 in FY23. Simultaneously, the Return on Equity saw a jump from 10.15% in FY21 to 29.12% in FY23. Furthermore, Export turnover rose from 15.37% to 19.21% during this timeframe.
RISK FACTORS
- Subpar Profit Margin: Despite yearly improvements in net profit margin, it remains relatively low at 5.2% when benchmarked against competitors.
- Cash Flow Concerns: RPEL has experienced negative cash flows in relation to its operating, investing, and financing activities in the last three financial years. Prolonged negative cash flows could significantly hinder its operational capabilities and the execution of growth strategies.
- Significant capital requirement: High capital needs coupled with potential cash flow deficits could hinder debt payments and affect operational outcomes.
Issue details
Issue type
Mainstream
Issue size
₹ 165.03 crore
Fresh Issue
₹ 135.24 crore
OFS
₹ 29.79 crore
Price range
₹ 93 - 98
Lot size
150 shares
Issue Objective
Net proceeds from the fresh issue will be utilised towards:
- Funding the working capital requirements of the company; and
- General corporate purposes.
Dates
Bidding open
4 Sep'23
Bidding close
6 Sep'23
Allotment date
7 Sep'23
Refund date
8 Sep'23
Listing
11 Sep'23
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.