Ratnaveer Precision IPO: Experts’ Opinion on Whether to Invest After 5-Fold First-Day Bidding
Ratnaveer Precision IPO
Ratnaveer Precision IPO: A Comprehensive Investment Analysis
The Ratnaveer Precision IPO, which is set to remain open for subscription until September 6th, 2023, presents a compelling opportunity for investors to become part of the growth journey of a stainless steel company.
This initial public offering has generated substantial interest, particularly among retail investors and high-net-worth individuals.
In this in-depth analysis, we will delve into the various aspects of the Ratnaveer Precision IPO, providing you with valuable insights to make an informed investment decision.
IPO Overview
The Ratnaveer Precision IPO has a total size of Rs 165.03 crore, and it offers investors the chance to purchase shares within a price band of Rs 93-98 per share.
Investors can acquire shares in lots of 150, making it accessible to a wide range of potential shareholders.
Investor Enthusiasm
One of the most striking aspects of the Ratnaveer Precision IPO is the enthusiastic response it has received from the investor community.
Within just one hour of opening, it was fully subscribed by retail investors. This level of interest is a clear indicator of the market’s appetite for this IPO.
On the first day of its offering, the IPO achieved an impressive oversubscription rate, exceeding 5 percent. In the gray market, the Grey Market Premium (GMP) experienced a minor fluctuation, decreasing by Rs 2 to Rs 48.
It’s important to note that while the gray market can provide some insights into market sentiment, investment decisions should primarily be based on a thorough analysis of the company’s fundamentals and financials.
Subscription Details
Let’s take a closer look at the subscription details for the Ratnaveer Precision IPO, categorized by investor type:
- Qualified Institutional Buyers (QIB): The QIB category was subscribed 0.05 times.
- Non-Institutional Investors (NII): NIIs showed significant interest, with a subscription rate of 9.01 times.
- Retail Investors: Retail investors also exhibited strong interest, subscribing at a rate of 7.61 times.
- Total: In total, the IPO was subscribed 5.75 times.
(Source: BSE)
This data underscores the broad appeal of the Ratnaveer Precision IPO across different investor categories. The high subscription rates indicate a widespread interest in the company’s growth prospects.
Expert Opinions
Understanding the insights of market experts is crucial when evaluating an IPO. Let’s examine the opinions of analysts from Choice Broking, a reputed brokerage firm:
According to Choice Broking analysts, Ratnaveer Precision has demonstrated impressive growth in both its top and bottom lines.
Despite operating in a fragmented market characterized by the dominance of small to medium-sized companies, there is ample room for growth.
Consequently, Choice Broking has assigned a “subscribe” rating to the IPO. However, they have also advised caution, considering the prevailing market conditions.
IPO Details
It’s essential to have a clear understanding of the key details surrounding the Ratnaveer Precision IPO. Here are the pertinent facts:
- Subscription Period: The IPO of Ratnaveer Precision will remain open until September 6th, 2023, providing potential investors with a window of opportunity to participate in the offering.
- Allocation: The IPO allocation is structured as follows: half of the issue is reserved for Qualified Institutional Buyers (QIBs), 15 percent for Non-Institutional Investors (NIIs), and 35 percent for retail investors.
- Allotment and Listing: Following the successful completion of the IPO, the allotment of shares will be finalized on September 11th, 2023. The shares are expected to be listed on both BSE and NSE on September 14th, 2023.
- Registrar Link: For those interested in participating in the IPO, the registrar link for the issue is Intime.
Utilization of Funds
Understanding how the proceeds from the IPO will be utilized is a crucial aspect of assessing its potential. In the case of the Ratnaveer Precision IPO, the funds raised through the issuance of new shares will serve specific purposes.
The IPO will involve the issuance of 1.38 crore new shares, each with a face value of Rs 10, resulting in a total face value of Rs 135.24 crore.
Additionally, there will be the sale of 30.40 lakh shares under the offer-for-sale window, with promoter Vijay Ramanlal Shanghvi being the seller.
The funds generated from the issuance of new shares will be allocated to meet working capital requirements and for general corporate purposes.
About Ratnaveer Precision
Understanding the core business and financial health of the company is essential for potential investors. Ratnaveer Precision operates four manufacturing units in Gujarat, each specializing in different product categories.
- Unit 1: This unit is primarily responsible for the production of finishing sheets, washers, and solar mounting hooks.
- Unit 2: Unit 2 specializes in the manufacturing of stainless steel (SS) pipes and tubes.
- Unit 3: The third unit plays a critical role in the backward integration process, functioning as a melting unit.
- Unit 4: The fourth unit is dedicated to the rolling process.
These diverse production units allow Ratnaveer Precision to offer a range of stainless steel products to its customers.
Financial Performance
To gain a more comprehensive understanding of Ratnaveer Precision’s financial performance, let’s examine key financial metrics:
- Financial Year 2022: In this fiscal year, the company achieved a consolidated profit of Rs 9.5 crore, representing an 18.7 percent increase compared to the previous year. The revenue also demonstrated robust growth, surging by 74.6 percent to reach Rs 426.9 crore.
- Financial Year 2023 (April to August): In the first five months of the financial year 2023, spanning from April to August, Ratnaveer Precision reported a revenue of Rs 169.5 crore and a profit of Rs 8.9 crore.
One notable aspect of the company’s revenue composition is that approximately 77 percent is derived from domestic business, with the remaining 23 percent coming from exports.
This balanced revenue distribution suggests stability and potential for further expansion into international markets.
Final Thoughts
The Ratnaveer Precision IPO presents an exciting investment opportunity for those looking to participate in the growth of a stainless steel company.
The IPO has already garnered significant interest from retail and institutional investors, underscoring its potential.
It’s important to consider the insights provided by experts, such as Choice Broking, and to conduct a thorough analysis of the company’s fundamentals and financials before making an investment decision.
With a diverse product portfolio and a strong financial track record, Ratnaveer Precision is well-positioned to capitalize on growth opportunities in the stainless steel industry.
However, as with any investment, there are risks to consider, including market volatility and industry-specific challenges.
Therefore, potential investors should carefully assess their risk tolerance and investment objectives before participating in the Ratnaveer Precision IPO.
As the subscription period is open until September 6th, investors have ample time to conduct their due diligence and make an informed decision regarding their participation in this IPO.
Keep in mind that investment decisions should align with your financial goals and risk tolerance, and seeking advice from financial experts or advisors is always a prudent step when considering IPO investments.
