Ratnaveer Precision Engineering IPO to kick-off on September 4. Here are the details

Ratnaveer Precision Engineering, which recently received Sebi's nod to launch its IPO, is coming up with its public offer on September 4. The issue will be available to bid till September 6.

The allocation to anchor investors will be done on September 1. The price band for the issue will be announced soon.

The IPO comprises a fresh equity issue of 1.38 crore shares and an offer for sale (OFS) of 30.4 lakh shares. About 50% of the offer is set aside for qualified institutional buyers, 15% is reserved for non-institutional investors, and 35% for retail investors.

Ratnaveer Precision Engineering is a stainless steel 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. Higher levels of chromium and additions of other alloy elements enhance the corrosion resistance.

Compared to traditional steel, stainless steel has a higher resistance to corrosion, a superior aesthetic finish, and a higher life span. These features have helped in increasing the popularity of stainless steel globally.

The proceeds from the fresh issue will be utilised towards funding working capital requirements and other general corporate purposes.

For the year ending March 2023, the company has clocked a total income of Rs 481 crore and a profit after tax of Rs 25 crore in the same period. EBITDA for the year stood at Rs 47 crore, with margins of 9.8%.

In FY23, the domestic turnover was Rs 387 crore, while that from exports stood at Rs 92 crore.

Unistone Capital is acting as the sole book-running lead manager to the issue, while Lin Intime India is the registrar.

The share allotment will likely be finalised in September and the tentative date for listing is September 14. The equity shares are proposed to be listed on both the exchanges NSE and BSE.