Ratnaveer Precision Engineering makes strong debut, lists at ₹123, almost 26% premium to issue price

Ratnaveer Precision Engineering made a strong debut on the bourses today, September 11, 2023. The stock listed at 123.20 on the NSE, a 25.71 percent premium to the issue price of ₹98. Meanwhile, on the BSE, it listed at ₹128, a 30 percent premium.

The ₹165 crore IPO was open for bidding between September 4-6 at a price range of ₹93-98 per share. The issue comprised of a fresh issue of 1.38 crore shares worth ₹135.24 crore and an offer-for-sale (OFS) for 30.40 lakh equity shares by its promoter Vijay Ramanlal Sanghavi.

It was overall subscribed a stellar 93.99 times. The portion for qualified institutional bidders was booked a whopping 133.05 times, while the non-institutional investors' category was subscribed an astounding 135.21 times. Retail investors were nowhere behind in bidding as their quota was subscribed 54 times.

Incorporated in 2002, Ratnaveer Precision Engineering specialises in the production of stainless steel products. These products include finished sheets, washers, solar roofing hooks, pipes, and tubes. The company has four manufacturing units located at Vadodara and Ahmedabad, Gujarat and no peer has been listed yet.

It manufactures stainless steel-based products for automotive, solar power, wind energy, power plants, oil & gas, pharmaceuticals, sanitary & plumbing, instrumentation, electromechanics, architecture, building & construction, electrical appliances, transportation, kitchen appliances, chimney liners, and other industries.

While very few brokerages have coverage on the IPO, they are mostly positive and recommend subscribing to the issue on the back of its strong business fundamental and in-line valuations. However, rising competition from unorganised players is a key concern for the firm.