Ratnaveer Precision Engineering
Book Building issueMainboard₹165 Cr issue
+30.61%
Listing gain over issue price
Issue size
₹165 Cr
1 lot at cut-off
₹14,700
Lot size
150shares
Open
04 Sep 2023
Close
06 Sep 2023
Allotment
07 Sep 2023
Listing
11 Sep 2023
Listing performance
Issue price
₹98
Listed at
₹128
Listing-day close
₹134.40
Latest price
₹330.70
Close on 23 Oct 2026
Listing gain
+30.61%
Return since issue
+237.45%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 04 Sep 2023 – 06 Sep 2023
- Listing date
- 11 Sep 2023
- Face value
- ₹10 per share
- Issue price
- ₹98 per share
- Lot size
- 150 shares
- Issue type
- Book Building issue
- Total issue size
- ₹165 Cr
- Market cap at offer price
- ₹475 Cr
- Promoter holding
- 86.30% → 55.48% pre-issue → post-issue
- ISIN
- INE05CZ01011
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- Plot no.E-77, G.I.D.C., Savli (Manjusar), Gujarat
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 | 50,52,000 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 150 shares per lot, in multiples, at ₹98
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 150 | ₹14,700 |
| Retail (max) | 13 | 1,950 | ₹1,91,100 |
| S-HNI (min) | 14 | 2,100 | ₹2,05,800 |
| S-HNI (max) | 68 | 10,200 | ₹9,99,600 |
| B-HNI (min) | 69 | 10,350 | ₹10,14,300 |
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.
Shares allocated
50,52,000
Anchor portion
₹49.51 Cr
at ₹98 per share
Valuation and performance
Valuation at offer price
₹98 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 7.26 | — |
| P/E (×) | 13.50 | — |
| Market cap | — | ₹475 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 29.12%
- ROCE
- 12.62%
- Debt / equity
- 2.17
- PAT margin
- 5.21%
- NAV per share
- ₹30.74
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Ratnaveer Precision Engineering
Ratnaveer Precision Engineering Limited (formerly Ratnaveer Metals Limited) is a stainless steel product manufacturer incorporated in 2002 and operating out of four production units in Gujarat. The company manufactures finished sheets, washers, solar roofing hooks, pipes and tubes—value-added stainless steel products with high corrosion-resistant properties. The company's business model is based on high-volume sales with customers typically placing purchase orders without long-term commitments. Revenue is generated through sales to customers across domestic and export markets, with significant geographic concentration in western and northern India. The company operates a high-margin business model dependent on efficient procurement, manufacturing, and working capital management.
Company Analysis
from RHPRatnaveer Precision Engineering Limited manufactures stainless steel products including finished sheets, washers, solar roofing hooks, pipes and tubes for industrial and commercial applications.
Ratnaveer Precision Engineering Limited (formerly Ratnaveer Metals Limited) is a stainless steel product manufacturer incorporated in 2002 and operating out of four production units in Gujarat. The company manufactures finished sheets, washers, solar roofing hooks, pipes and tubes—value-added stainless steel products with high corrosion-resistant properties. The company's business model is based on high-volume sales with customers typically placing purchase orders without long-term commitments. Revenue is generated through sales to customers across domestic and export markets, with significant geographic concentration in western and northern India. The company operates a high-margin business model dependent on efficient procurement, manufacturing, and working capital management.
stainless steel manufacturingspecialty metalssheet metal components
Objects of the Issue
- Funding working capital requirements of our Company ₹850.00 Million p.31
- General corporate purposes [●] p.31
- See Objects of the Offer beginning on page 118 p.82
- Funding working capital requirements of our Company ₹850.00 million p.124
- General corporate purposes [●] million (not to exceed 25% of gross Offer Proceeds) p.126
Issue Structure
- Total Issue
- Up to 16,840,000 Equity Shares aggregating to ₹ [●] Million
- Fresh Issue
- Up to 13,800,000 Equity Shares aggregating to ₹ [●] Million
- Offer for Sale
- Up to 3,040,000 Equity Shares aggregating to ₹ [●] Million by Vijay Ramanlal Sanghavi
- Price Band
- [●] to [●] per Equity Share
- Lot Size
- [●] Equity Shares
- Face Value
- ₹10
Business Model
The company generates revenue by manufacturing and selling stainless steel products including finished sheets, washers, solar roofing hooks, pipes and tubes on a purchase-order basis to customers in India and internationally. The business involves procuring raw materials (stainless steel sheets, coils, wire, and scrap), manufacturing finished products, and extending credit to customers over an average period of 75 days. The company also undertakes backward integration through melting and rolling operations at two units on a leave-and-license basis.
Business Segments
Manufacturing of stainless steel finishing sheets
Manufacturing of stainless steel washers and solar roofing hooks
Manufacturing of stainless steel pipes and tubes
Stainless steel finishing sheets
Stainless steel washers
Stainless steel solar roofing hooks
Stainless steel scrap metals
Stainless steel tubes and pipes
Manufactures thin flat stainless steel pieces with multiple finishes (No.1, No.2 Matte, No.3 Brushed, No.4, No.7 & No.8) used in architecture & building construction, automotive, railways, food industry, and commercial kitchens
Manufactures disk-shaped stainless steel washers (plain, lock, and spring washers) used as spacers in fastener assemblies across automotive, infrastructure, industrial, and construction applications
Manufactures solar mounting hooks and various sheet metal components used in solar panel mounting systems, automotive, telecommunications, oil & gas, and heavy engineering industries
Manufactures stainless steel pipes and tubes used in oil & gas, capital goods, power sector, chemical & petrochemical plants, pharmaceutical industry, and industrial applications requiring corrosion resistance
Manufacturing of stainless steel finishing sheets
Manufacturing of stainless steel washers
Manufacturing of stainless steel solar roofing hooks
Sale of stainless steel scrap metals
Manufacturing of stainless steel tubes and pipes
SWOT Analysis
Strengths
- • Established player in stainless steel products with diversified product portfolio(p.30)
- • Strong financial growth trajectory with increasing profitability(p.49)
- • Multiple manufacturing units with installed production capacity across key products(p.44)
- • Backward integration providing competitive advantage through melting and rolling operations(p.49)
- • Improved return on equity and capital employed metrics(p.42)
- • Established market presence with consistent revenue growth(p.88)
- • Strong profitability with improving margins(p.89)
- • Significant customer concentration enabling focused service delivery(p.89)
- • Diversified product portfolio across stainless steel applications(p.89)
- • Strong debt service capability(p.89)
- • Diverse product portfolio serving multiple end-use applications(p.132)
- • Experienced promoter and young management team(p.132)
- • Established international market presence(p.132)
- • Strategic manufacturing facility locations with quality focus(p.132)
- • Strong quality assurance and control systems(p.132)
- • Continuous R&D investment for new product development(p.132)
- • Backward integration model reduces raw material costs and dependency(p.195)
- • Consistent revenue and profit growth over 13 years(p.197)
- • Wide product portfolio with 2500+ SKUs of washers across multiple product lines(p.197)
- • In-house R&D facility for product development and innovation(p.197)
- • Diversified customer base reduces concentration risk(p.197)
- • Experienced promoter with two decades in steel and stainless steel industry(p.197)
- • Quality management system certified to ISO standards(p.212)
Weaknesses
- • High dependence on few suppliers for raw materials with no long-term supply contracts(p.36)
- • High concentration of customer base creating revenue dependency(p.39)
- • Significant geographic concentration of domestic revenue in western and north zones(p.40)
- • Working capital intensive business model requiring significant cash flow management(p.41)
- • High volume-low margin business model limiting profitability(p.42)
- • Negative operating cash flows in recent financial years(p.43)
- • Lack of long-term customer arrangements and short-term purchase order basis(p.39)
- • Significant contingent liabilities of ₹162.96 million that may materialize(p.53)
- • High employee attrition among Directors and Key Managerial Personnel(p.54)
- • Unapproved construction at Unit-I creating regulatory compliance risk(p.46)
- • Production capacity exceeding authorized GPCB limits creating environmental non-compliance(p.53)
- • Past and ongoing regulatory non-compliances under Companies Act(p.55)
- • Breach of loan covenants and unauthorized lending by company(p.47)
- • Promoter has provided personal guarantee on loans creating concentration risk(p.49)
- • High debt-to-equity ratio limiting financial flexibility(p.56)
- • Backward integration operations dependent on leave and license agreements subject to annual renewal(p.49)
- • Limited registered intellectual property with unregistered trademark(p.56)
- • High dependence on third-party transportation providers(p.57)
- • Geographic concentration of manufacturing units in Gujarat(p.57)
- • High raw material cost dependency(p.66)
- • Key management personnel attrition risk(p.64)
- • Inadequately stamped property agreements creating legal risk(p.62)
- • Reliance on unsecured related-party loans(p.70)
- • High leverage with debt-to-equity ratio of 2.17(p.136)
- • Concentrated customer base dependent on few large OEMs(p.165)
- • Unfunded working capital requirement needs reliance on external financing(p.124)
- • Modest scale compared to major peers(p.134)
- • High capital intensity and declining capacity utilization of washers segment(p.207)
- • Significant working capital requirement with high inventory levels(p.208)
- • Dependence on stainless steel scrap sourcing from external parties(p.195)
- • Short-term lease arrangements for Units III and IV creating operational uncertainty(p.206)
- • Concentration risk with top 10 customers contributing 49.62% of revenue(p.197)
- • Multiple regulatory violations related to governance and compliance(p.348)
- • Non-compliance with Nomination and Remuneration Committee requirements(p.348)
- • Improper managerial remuneration without board and shareholder approval(p.348)
- • Non-appointment of whole-time company secretary for extended period(p.348)
- • Non-compliance with independent director appointment requirements(p.349)
- • Multiple customs duty violations and disputes(p.346)
- • Promoter litigation involving domestic violence allegations(p.351)
- • Material civil litigation over unpaid dues for machinery(p.349)
- • Significant direct tax liabilities under dispute(p.352)
Opportunities
- • Expanding product portfolio to include higher-margin products(p.49)
- • Significant growth in Indian steel production and consumption providing market expansion(p.30)
- • Deepening penetration in existing markets of western and north zones(p.49)
- • Expansion into new geographic territories beyond western and northern zones(p.49)
- • Increasing demand for stainless steel products with superior properties(p.30)
- • Emergence of middle-class consumer segment driving steel consumption(p.30)
- • Expansion of stainless steel product lines to capture market growth(p.57)
- • Geographic expansion beyond Western and Northern regions(p.89)
- • Increased export market penetration(p.89)
- • Enhancement of manufacturing capacity and technology(p.85)
- • Growing demand from architecture, building & construction segment for decorative SS sheets(p.158)
- • Expansion of metro rail network creating sustained demand for specialized SS sheets(p.159)
- • Growing green building market demanding recyclable SS materials(p.159)
- • Projected SS sheet consumption growth to 1.66 billion tons by 2030(p.166)
- • Rising demand from solar industry for SS washers and sheet metal components(p.173)
- • Strong projected growth in SS washer consumption from 28.2 to 46.1 thousand tons by 2028(p.180)
- • Domestic SS pipes and tubes market projected to grow at 8.5% CAGR to 1.6 Mn Tonnes by 2026(p.192)
- • Government support through Atmanirbhar Bharat, PLI, and Make in India schemes(p.192)
- • Strong demand drivers from chemical & petrochemical sector(p.189)
- • Growth in solar power sector with 47.5% of renewable energy capacity(p.203)
- • Infrastructure development under PM Gati Shakti project driving steel demand(p.191)
- • Plans to expand washer portfolio by adding circlips product line(p.194)
- • Strategy to strengthen global presence in European and international markets(p.198)
Threats
- • Volatility in steel prices driven by commodity market fluctuations and global factors(p.39)
- • Risk of inability to pass increased raw material costs to customers(p.37)
- • Exposure to foreign exchange fluctuations from imported raw materials(p.37)
- • Intense competition from organized and unorganized industry players(p.43)
- • Low barriers to entry enabling new competitor entry(p.43)
- • Economic downturns reducing steel demand and prices(p.39)
- • Risk of supply disruptions from key suppliers affecting production(p.37)
- • Regulatory changes and trade sanctions affecting import of raw materials(p.37)
- • Adverse developments in western and north zones affecting majority of sales(p.40)
- • Localized natural disasters and infrastructure disruptions in Gujarat region(p.48)
- • Pandemic-related supply chain disruptions(p.37)
- • Regulatory risks from environmental compliance non-compliance(p.53)
- • Risk of customer order cancellations and changing payment terms(p.39)
- • Risk of adverse litigation outcomes affecting operations and reputation(p.51)
- • Volatility in stainless steel product prices due to raw material costs(p.64)
- • Global fuel price volatility impacting transportation costs(p.57)
- • Restrictions on import of raw materials(p.66)
- • Regulatory and environmental compliance costs(p.62)
- • Indian economic slowdown affecting demand(p.72)
- • Operating disruptions from natural disasters and workplace hazards(p.60)
- • Foreign exchange volatility affecting export competitiveness(p.70)
- • High inflation impacting cost structure(p.76)
- • Intense competition from low-cost imports from China, South Korea, and Japan(p.161)
- • Rapid increase in SS sheet imports to India, tripling from 111 to 223 thousand tons in FY2023(p.162)
- • Commodity-like nature of products limits pricing power in fragmented market(p.164)
- • Raw material cost volatility and input price fluctuations(p.175)
- • Regulatory risks including anti-dumping measures and trade restrictions(p.170)
- • Economic slowdown and moderation in industrial growth impacting demand(p.150)
- • Rising imports from low-cost competitors like China creating pricing pressure(p.192)
- • RBI likely to move away from accommodative monetary policy amid rising inflation(p.192)
- • Construction sector hit by COVID-19 with moderated activity and delayed clearances(p.190)
- • Automobile production volatility affecting demand for tubes and pipes(p.189)
- • Highly fragmented and competitive industry with low entry barriers for sheets(p.211)
- • Competition from established players with greater financial and technical resources(p.211)
- • Ongoing customs duty appeals with material exposure(p.346)
- • Foreign customs litigation for alleged breach of sale agreement(p.350)
- • Significant indirect tax liabilities under dispute(p.352)
- • Safeguard duty recovery demands(p.346)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Vijay Ramanlal Sanghavi | Promoter | 83.60% | — |
| Vijay Ramanlal Sanghavi | Promoter | 83.60% | — |
| Vijay Ramanlal Sanghavi | Promoter Selling Shareholder | — | — |
| Vijay R Sanghvi | Promoter | 83.60% | — |
| Seema V Sanghvi | Promoter | 2.71% | — |
| Vijay Ramanlal Sanghavi | Promoter Selling Shareholder | — | — |
| Vijay Ramanlal Sanghavi | Promoter Selling Shareholder | — | — |
Leadership
Vijay Ramanlal Sanghavi · Chairman and Managing Director
Prerana Rajeshbhai Trivedi · Company Secretary and Compliance Officer
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.
Ratnaveer Precision Engineering IPO FAQs
What is the lot size of Ratnaveer Precision Engineering IPO?
The minimum lot size of Ratnaveer Precision Engineering IPO is 150 shares. One lot costs ₹14,700 at the cut-off price.
When does Ratnaveer Precision Engineering IPO open and close?
Ratnaveer Precision Engineering IPO opened for subscription on 04 Sep 2023 and closed on 06 Sep 2023.
What is the listing date of Ratnaveer Precision Engineering IPO?
Ratnaveer Precision Engineering IPO listed on 11 Sep 2023.