Ratnaveer Precision Engineering Limited IPO

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i. Ratnaveer Precision Engineering Limited 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.

ii. Globally, cold rolled flat products is the largest produced stainless-steel product in the world, followed by hot rolled coils, and steel wire rods & bars. According to International Stainless-Steel Forum, cold rolled flat products accounts for approximately 47% of total stainless-steel trade in the world.

iii. They operate out of four manufacturing units, out of which two are located at GIDC, Savli, Vadodara, Gujarat, (Unit-I and Unit-II) one is located at Waghodia, Vadodara, Gujarat (Unit-III) and the other one is located at GIDC, Vatva, Ahmedabad, Gujarat (Unit-IV). Their manufacturing units are strategically located with availability of transportation, which facilitates convenient transportation of its products.

iv. Ratnaveer Precision manufacture finishing sheets, washers and solar mounting hooks at our Unit I and SS pipes & tubes at our Unit II. Unit III and Unit IV are dedicated for the backward integration process where Unit III is the melting unit where they melt steel scrap and turn it into steel ingots and Unit IV is the rolling unit where flat ingots are further processed to turn them into sheets which are the raw material for washers. Their Units are supported by infrastructure for storage of raw materials, manufacturing of their products, storage of finished

v. Ratnaveer Precision is one of the few companies who has a backward integration modelwhich is one of its major strengths and has helped them in maximising the returns on thier investments. While their two units (Unit I and II) are dedicated for manufacturing the products which are offered to their customers, the other two units (Unit III and IV) are dedicated towards processing the byproducts

vi. Their products find application across various industries including automotive, solar power, wind energy, power plants, oil & gas, pharmaceuticals, sanitary & plumbing, instrumentation, electro mechanics, architecture, building & construction, electrical appliances, transportation, kitchen appliances, chimney liners, etc. Their products are used in both commercial and residential sector and are sold within India and overseas.

vii. The company intend to expand its portfolio of washers by adding circlips into the product line. They currently offer over 2500 SKUs of washers to its customers including inner ring washers, spring washers, nord lock washers, retaining rings, internal tooth washers and external tooth washers of different sizes and specifications. They intend to increase this portfolio by adding circlips into their product line which will help to expand their portfolio.

viii. They have taken the land located at E-78, GIDC Industrial Estate, Savli, Dist. Vadodara, which is adjoining to their Unit I, on a 99-year lease from GIDC, for this expansion. They have undertaken R&D activity for developing circlips, have developed the required tools and identified prospective customers.

ix. Competitive Strengths

i. Synergistic Business Models focused on Backward Integratio
ii. Consistent financial performanc
iii. Wide product portfolio and multiple designs


Objects of the Ratnaveer Precision Engineering Limited IPO:

The Offer comprises the Offer for Sale and the Fresh Issue. The Fresh Issue comprises of upto 13,800,000 Equity Shares and the Offer for Sale comprises of upto 3,040,000 Equity Shares, by the Promoter Selling Shareholder Vijay Ramanlal Sanghavi The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects: 1. Funding working capital requirements of the Company; and 2. General corporate purposes  

Ratnaveer Precision Engineering Limited IPO Details:

Open Date: Sep 04 2023
Close Date: Sep 06 2023
Total Shares: 16,840,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 165.03 Cr.
Lot Size: 150 Shares
Issue Price: ₹ 93 to ₹98 Per Equity Share
Listing At: NSE,BSE
Listing Date: Sep 15 2023

Promoters And Management:

i. Vijay Ramanlal Sanghavi is the Managing Director and Chief Financial Officer of the Company. He has been associated with the Company since its incorporation. He holds a bachelor degree in Commerce from the MS University, Baroda. He has over two decades of experience in ferrous and non-ferrous metal industries. He has been associated with the Company since its incorporation and has been actively involved in the operations of the Company. He is in-charge of the finance and marketing functions in the Company and also overviews production, Research & Development and related management of the Company. ii. Babulal Sohanlal Chaplot is the Whole time Director of the Company. He holds a bachelor degree in engineering from the University of Baroda. He has over four decades of experience and has worked in different sectors such as metals, agriculture, automobile etc. He has been associated with the Company since past fifteen years and has been acting as a Director on the Board since 2011. He oversees production as well as commercial functions. iii. Binita Verdia is a Non-Executive Director of the Company. She has been associated with the Company since September 07, 2022. She is a Ph.D. holder in Botany specialization in Plant tissue culture and its applications from Maharaja Sayaji Rao University of Vadodara, Gujarat. She also holds a degree of Master of Science from Maharaja Sayaji Rao University of Vadodara, Gujarat. She has over two decades of experience Corporate & NGO Management, CSR front, Research and learning nuances of ESG component.  

Financials of Ratnaveer Precision Engineering Limited IPO:

A. Balance Sheet
Particular (In Crore) Mar-21 Mar-22 Mar-23
Equity Share Capital 4.26 4.26 34.89
Reserves 52 62 71
Borrowings 151 191 230
Trade Payables 36 41 37
Other Liabilities 13 11 16
Total Liabilities 199 243 283
Net Block 27 33 35
Capital Work in Progress 3 4 9
Other Assets 10 12 18
Total NC Assets 40 49 62
Receivables 33 40 63
Inventory 136 171 206
Cash & Bank 19 20 30
Other Assets 29 29 27
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Crore) Mar-21 Mar-22 Mar-23
Sales 360 427 480
Raw Material Cost 322 374 419
Change in Inventory -17 -19 -27
Employee Cost 7 8 8
Other Expenses 27 37 34
Other Income 4 2 1
EBITDA 24 29 47
EBITDA Margin 6.76% 6.81% 9.80%
Depreciation 3 4 4
Interest 12 12 12
Profit before tax 10 13 31
Tax 4 4 6
Net profit 5 9 25
NPM (%) 1.50% 2.21% 5.21%
C. Cash Flow Statement
Particular (In Crore) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 23 28 46
Receivable 31 -7 -23
Inventory -20 -36 -35
Payable -0.7 5.5 -3.8
Loans And Advances 0 0.5 0
Other WC Items -17 -3.8 5.6
Working Capital Changes -7 -41 -56
Direct Taxes -3 -3 -4
Net Cash Inflow from Operating Activity 13 -16 -14
Cash from Investing Activity
Fixed assets purchased -12 -13 -18
Fixed assets sold 0.07 0.14 0.06
Other investing items 1.2 1 1.4
Net cash inflow from investing activities -11 -12 -17
Cash from Financing Activity
Proceeds from shares 0 0 0.27
Proceeds from borrowings 18 40 39
Repayment of borrowings -6.6 0 0
Intrest paid fin -12 -12 -12
Other financing items 0 -0.3 15
Net Cash Flow 0.8 0.9 10.7

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Ratnaveer Precision Engineering Limited 480 25 5.16 18.97 98 475
M.M. Forgings Limited 1409 126 52.02 18.0 939 2264
Menon Bearings Limited 219 33 5.84 24.6 137 766
Venus Pipes & Tubes Limited 552 44 21.78 57.9 1,498 3,040
* All the data is as per FY23.

Recommendation on Ratnaveer Precision Engineering Limited IPO:

Review and Recommendation of Ratnaveer Engineering IPO by IZ team is 5/10 Read Review Here

Lead Manager of Ratnaveer Precision Engineering Limited IPO:

  1. Unistone Capital

Registrar of Ratnaveer Precision Engineering Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Plot no. E-77, G.I.D.C.,Savli (Manjusar), Vadodara - 391 775, Gujarat, India  

Discussion on Ratnaveer Precision Engineering Limited IPO:


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