Ratnaveer Precision Engineering shares to list on September 11, marking the first T+3 debut

The shares of Ratnaveer Precision Engineering will list on the exchanges on September 11, instead of the earlier planned September 14, making it the first company to debut on the exchanges within three days of issue closing.

Markets regulator has recently announced changes to IPO listing rules, reducing the timeline from the T+6 days to T+3 days, where ‘T’ is the IPO closing date.

The new rules will be applied on a voluntary basis for IPOs that hit the market after September 1. However, starting December, all companies need to list their shares on the exchanges within three days of issue closing.

The IPO of Ratnaveer Precision Engineering, which ended on September 6, received strong response from investors with the overall subscription at 93.95 times at close.

According to market sources, the company’s shares are trading at a premium of Rs 60 in the unlisted market. Considering the upper price band of Rs 90, the stock is expected to list at a premium of 61%.

The company will not receive any proceeds from the OFS portion. From the fresh issue, net proceeds will be used to fund the working capital requirements and residual funds will be utilised for general corporate purposes.

Ratnaveer’s products include finished sheets, washers, solar roofing hooks, pipes, and tubes, which find applications across diverse industries, including automotive, solar power, wind energy, power plants and more.The company intends to expand its portfolio of stainless steel washers by adding circlips to the product line. Currently, it offers over 2500 SKUs of stainless steel washers, including inner ring washers, spring washers, nord lock washers, retaining rings of different sizes and specifications.

For the year ending March 2023, Ratnaveer 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.


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