Ratnaveer Precision Engineering files DRHP with SEBI for the proposed IPO; Key Details here

Ratnaveer Precision Engineering is into Engineering Precision Engineering and is looking raise funds through Fresh Issue and Offer for Sale

Ratnaveer Precision Engineering to raise Fresh Issue of Equity shares up to 13,800,000 and an Offer for Sale 3,040,000 Equity Shares through public issue IPO

Ratnaveer Precision Engineering IPO: Ratnaveer Precision Engineering Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

Initial Public Offer comprising of a Fresh Issue of up to 13,800,000 Equity Shares and an Offer for Sale up to 3,040,000 Equity Shares. Unistone Capital have been appointed as lead merchant bankers for the proposed IPO. It has appointed Link Intime India Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue of up to 13,800,000 Equity Shares offer-for-sale (OFS) of up to 3,040,000 equity shares by Vijay Ramanlal Sanghavi..

Objects of the issue:
1) Funding working capital requirements of about Rs. 85 crores, and 2) General corporate purpose.

About Company:
Established in 2002, Ratnaveer Precision Engineering 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. Higher levels of chromium and additions of other alloy elements enhance the corrosion resistance. Compared to traditional steel, stainless-steel has higher resistance to corrosion, superior aesthetic finish and higher life span. These features have helped in increasing the popularity of stainless-steel across the world.

About Industry:
Since 2000, steel production in the country has seen a phenomenal increase as the sector witnessed high investments in capacity addition as well as technology up-gradation. According to World Steel Association (WSA), India produced 118.13 Mn tons of crude steel in CY 2021 and accounted for 6.1% share in global crude steel production. According to WSA’s September 2022 update, India produced approximately 93.3 Mn tons of steel during January – September 2022 period, which nearly 6.4% higher than same period previous year. Unless there are no major disruptions, Indian steel industry would end the year with approximately 124 Mn tons of crude steel. In 2021, India’s crude steel production registered a robust y-o-y growth of 18% against 10% contraction in the previous year while it grew at a CAGR of 4% between 2017-21. Presence of such a vast primary steel manufacturing infrastructure coupled with the low-cost worker has also helped in the growth of secondary and finished steel products. On consumption side, India is also the second largest consumer of finished steel. The emergence of a middle-class consumer segment has altered the consumption landscape in India

Source: SEBI, BSE, NSE, DRHP, Company, Industry Data

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