Primary Business of the Company:
Ratnaveer Precision Engineering Limited specializes in the production of stainless steel (“SS”) items, emphasizing the fabrication of finalized sheets, washers, solar roofing hooks, pipes, and tubes. Stainless steel, known for its exceptional corrosion resistance, is a premium product. Its corrosion resistance is elevated by increased levels of chromium and the inclusion of other alloying elements. In contrast to conventional steel, stainless steel boasts heightened resistance to corrosion, an enhanced aesthetic appeal, and an extended lifespan. These attributes have contributed to the widespread surge in the global demand for stainless steel.
About the Industry in which the Company operates:
Starting from the year 2000, the steel production landscape in the nation has experienced a remarkable surge, largely due to significant investments in expanding production capacities and advancements in technology within the sector. As per the data from the World Steel Association (WSA), India achieved an impressive output of 118.13 million tons of crude steel in the calendar year 2021, contributing to 6.1% of the global crude steel production share.
According to the WSA’s update in September 2022, the steel production in India reached approximately 93.3 million tons during the January to September period of 2022. This marked a substantial increase of nearly 6.4% compared to the same period in the previous year. Barring unforeseen major disruptions, it is anticipated that the Indian steel industry will conclude the year with an approximate production of 124 million tons of crude steel.
In the year 2021, India’s crude steel production demonstrated a robust year-on-year growth rate of 18%, a noteworthy contrast to the 10% contraction observed in the preceding year. Additionally, it maintained a Compound Annual Growth Rate (CAGR) of 4% within the timespan of 2017 to 2021. The presence of an extensive primary steel manufacturing infrastructure, combined with a workforce available at low costs, has also significantly contributed to the expansion of secondary and finished steel product sectors.
On the demand side, India stands as the second-largest consumer of finished steel. The transformation in consumption patterns within India, brought about by the emergence of a middle-class consumer segment, has brought notable changes to the consumption landscape.
Key Financial Information (â‚ą in millions):
| Metrics | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 |
|---|---|---|---|
| Share Capital (Rs.) | 348.94 | 42.62 | 42.62 |
| Net Worth (Rs.) | 1060.54 | 659.74 | 565.77 |
| Total Income (Rs.) | 4,811.45 | 4,284.72 | 3,640.51 |
| Profit/loss after tax | 250.44 | 94.76 | 54.59 |
| Basic and Diluted EPS | 7.26 | 2.75 | 1.59 |
| Net asset value per share | 30.74 | 19.20 | 16.21 |
| Total borrowings (Rs.) | 2,299.89 | 1,907.27 | 1,507.60 |
Objective of the Issue:
- Funding working capital requirements of our Company
- General corporate purposes
For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.
IPO Timelines
| Open Date | Monday, 4 September 2023 |
| Close Date | Wednesday, 6 September 2023 |
| Issue Size | â‚ą165.03 crores |
| Price | â‚ą93 to â‚ą98 per share |
| Lot Size | 150 Shares |
| Basis of Allotment | Monday, 11 September 2023 |
| Initiation of Refunds | Tuesday, 12 September 2023 |
| Credit of Shares to Demat | Wednesday, 13 September 2023 |
| Listing Date | Thursday, 14 September 2023 |
How to apply for this IPO?
You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.
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