Ramdevbaba Solvent
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Apr 2024 – 18 Apr 2024
- Listing date
- 23 Apr 2024
- Face value
- ₹10 per share
- Issue price
- ₹85 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹50.27 Cr
- Market cap at offer price
- ₹188 Cr
- Promoter holding
- 83.37% → 61.09% pre-issue → post-issue
- ISIN
- INE0RJH01010
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Choice Capital Advisors Pvt.Ltd.
- Registered office
- Bhaiya Building, Anaj Bazar, Itwari, Itwari, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 16,80,000 | — | — |
| Market maker | 3,13,600 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹85
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,36,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,72,000 |
| S-HNI (max) | 7 | 11,200 | ₹9,52,000 |
| B-HNI (min) | 8 | 12,800 | ₹10,88,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.02 | 5.00 |
| P/E (×) | 10.60 | 17.00 |
| Price to book (×) | 1.83 | — |
| Market cap | — | ₹188 Cr |
Key performance indicators
- Return on net worth
- 14.24%
- ROCE
- 10.76%
- Debt / equity
- 1.46
- PAT margin
- 1.79%
- NAV per share
- ₹46.33
- Price to book
- 1.83
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Ramdevbaba Solvent
Ramdevbaba Solvent Limited, incorporated in 2008 and converted to public limited in 2023, is engaged in manufacturing, distribution, marketing and selling of Physically Refined Rice Bran Oil (RBO). The company operates two manufacturing facilities near Nagpur, Maharashtra with three solvent extraction facilities (2,55,000 MTPA capacity) and two oil refining facilities (48,000 MTPA output capacity). The company supplies bulk RBO to FMCG companies including Mother Dairy, Marico Limited, and Empire Spices, while also selling under its own brands 'Tulsi' and 'Sehat' through 38 distributors in Maharashtra. The company produces de-oiled rice bran (DORB) as a by-product, selling it as cattle feed, poultry feed, and fish feed across southern states. Revenue for FY 2023 was ₹69,775.26 lakhs, with net profit of ₹1,300.15 lakhs. The company also produces various by-products including fatty acids, lecithin, and wax.
Company Analysis
from RHPRamdevbaba Solvent Limited manufactures and sells refined rice bran oil to FMCG companies and under own brands, and produces de-oiled rice bran as animal feed, operating in food processing and edible oil sectors in India.
Ramdevbaba Solvent Limited, incorporated in 2008 and converted to public limited in 2023, is engaged in manufacturing, distribution, marketing and selling of Physically Refined Rice Bran Oil (RBO). The company operates two manufacturing facilities near Nagpur, Maharashtra with three solvent extraction facilities (2,55,000 MTPA capacity) and two oil refining facilities (48,000 MTPA output capacity). The company supplies bulk RBO to FMCG companies including Mother Dairy, Marico Limited, and Empire Spices, while also selling under its own brands 'Tulsi' and 'Sehat' through 38 distributors in Maharashtra. The company produces de-oiled rice bran (DORB) as a by-product, selling it as cattle feed, poultry feed, and fish feed across southern states. Revenue for FY 2023 was ₹69,775.26 lakhs, with net profit of ₹1,300.15 lakhs. The company also produces various by-products including fatty acids, lecithin, and wax.
Objects of the Issue
- Setting up of new manufacturing facility ₹1,881.40 lakhs p.85
- Repayment in full or in part, of certain of our outstanding borrowings ₹841.96 lakhs p.85
- Funding the working capital requirements of our Company ₹1,200.00 lakhs p.85
- General corporate purposes [●] p.85
Issue Structure
- Total Issue
- Up to 59,13,600 equity shares of face value of ₹10 each
- Fresh Issue
- Up to 59,13,600 equity shares of face value of ₹10 each fully paid up at a price of ₹[●] per equity share aggregating up to ₹[●] lakhs
- Offer for Sale
- NA
- Price Band
- ₹80 to ₹85 per equity share
- Lot Size
- 1,600 equity shares and in multiples of 1,600 equity shares thereafter
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue through: (1) Sale of Refined Rice Bran Oil to FMCG companies on contract basis (33.50% of FY 2023 revenues), (2) Sale of Rice Bran Oil under own brands 'Tulsi' and 'Sehat' through distributors (8.34% of FY 2023 revenues), (3) Sale of de-oiled rice bran (DORB) as animal feed (45.52% of FY 2023 revenues), (4) Sale of other by-products like fatty acids, lecithin, spent earth, gum, and wax (12.61% of FY 2023 revenues). The business model involves procuring rice bran from local suppliers, extracting crude oil through solvent extraction, refining the crude oil, and distributing finished products directly to FMCG partners or through its own distributor network.
Business Segments
SWOT Analysis
- • Strategic location of Manufacturing Facilities near Nagpur, Maharashtra enabling supply to Central and Southern India(p.131)
- • Easy availability of abundant rice bran as main raw material at competitive prices(p.131)
- • Integrated operations with both extraction and refining capabilities enabling economies of scale(p.131)
- • Established relationships with FMCG companies for bulk supply of Rice Bran Oil(p.131)
- • Strong focus on stringent quality control with QC laboratory at each facility(p.138)
- • Experienced Promoters with four decades of collective experience in agro-food business(p.131)
- • High debt-to-equity ratio indicating significant financial leverage(p.28)
- • Dependence on few FMCG customers for significant portion of revenue(p.30)
- • Absence of long-term agreements with FMCG customers for Rice Bran Oil supply(p.30)
- • No long-term supply contracts with raw material suppliers(p.37)
- • Concentration of business operations in Maharashtra and neighbouring states(p.28)
- • Unsecured loans that may be recalled at any time(p.33)
- • Setting up corn de-oiling manufacturing facility to supply de-oiled corn cake to Associate company's ethanol plant(p.132)
- • Entering blended oil products category with AGMARK certification(p.133)
- • Strong growth in food processing sector at 8.38% CAGR(p.121)
- • Increasing demand for edible oils with per capita consumption projected to grow(p.124)
- • Launching cleaning products as bundled offerings to enhance Rice Bran Oil sales(p.133)
- • Expansion of brand presence to neighbouring states to increase market share(p.133)
- • Risk of restrictive covenants in financing agreements limiting business flexibility(p.27)
- • Commodity price volatility affecting profitability of rice bran oil sales(p.31)
- • Dependence on rice bran availability from local suppliers without long-term contracts(p.28)
- • Unfavourable weather patterns and seasonal variations affecting raw material availability and prices(p.33)
- • Regulatory and environmental compliance requirements for manufacturing operations(p.40)
- • Slowdown in economic growth adversely affecting demand for edible oils(p.44)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Prashant Kisanlal Bhaiya | Promoter | 12.74% | — |
| Nilesh Suresh Mohata | Promoter | 21.61% | — |
| Tushar Ramesh Mohata | Promoter | 23.11% | — |
| Aayush Prashant Bhaiya | Promoter | 0.95% | — |
| Prashant Kisanlal Bhaiya (HUF) | Promoter | 2.50% | — |
| Mohata Nilesh Suresh (HUF) | Promoter | 1.72% | — |
| Kishanlal Prashant (HUF) | Promoter | 0.95% | — |
| Prashant & Ayush (HUF) | Promoter | 0.93% | — |
| Prashant Prateek (HUF) | Promoter | 0.91% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.