Rhetan TMT
SME₹56 Cr issue
0.00%
Listing gain over issue price
Issue size
₹56 Cr
1 lot at cut-off
₹1,40,000
Lot size
2,000shares
Open
22 Aug 2022
Close
25 Aug 2022
Allotment
30 Aug 2022
Listing
05 Sep 2022
Listing performance
Issue price
₹70
Listed at
₹70
Listing-day close
₹66.50
Latest price
₹14.92
Close on 23 Oct 2026
Listing gain
0.00%
Return since issue
+699.29%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 Aug 2022 – 25 Aug 2022
- Listing date
- 05 Sep 2022
- Face value
- ₹10 per share
- Issue price
- ₹70 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹56 Cr
- Market cap at offer price
- ₹149 Cr
- Promoter holding
- 99.62% → 62.12% pre-issue → post-issue
- ISIN
- INE0KKN01029
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- 7th Floor, Ashoka Chambers, Rasala Marg, Mithakhali, 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 |
|---|---|---|---|
| Market maker | 4,16,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹70
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 16,000 | ₹11,20,000 |
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.
Valuation and performance
Valuation at offer price
₹70 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.00 | — |
| P/E (×) | 35.00 | — |
| Market cap | — | ₹149 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 10.14%
- ROCE
- 8.00%
- Debt / equity
- 1.15
- PAT margin
- 3.50%
- NAV per share
- ₹17.46
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Rhetan TMT
Rhetan TMT Limited, incorporated on June 26, 1984 (originally as Shivani Rolling Mills Private Limited), is a steel manufacturing company operating a Rolling Mill Section with an installed capacity of 30,000 MTPA to produce TMT Bars and Round Bars. The company operates from its manufacturing facility located at Survey No. 325, Karannagar, Kadi-Kalol Road, Taluka Kadi, Dist. Mehsana, Gujarat - 382715, spread over 15,000 sq. yards. The plant is equipped with latest technologies for competitive advantage and complies with applicable laws and licenses. The company has successfully established its brand in TMT Bars manufacturing.
Company Analysis
from RHPRhetan TMT Limited manufactures and supplies TMT Bars and Round Bars, operating in the steel manufacturing industry.
Rhetan TMT Limited, incorporated on June 26, 1984 (originally as Shivani Rolling Mills Private Limited), is a steel manufacturing company operating a Rolling Mill Section with an installed capacity of 30,000 MTPA to produce TMT Bars and Round Bars. The company operates from its manufacturing facility located at Survey No. 325, Karannagar, Kadi-Kalol Road, Taluka Kadi, Dist. Mehsana, Gujarat - 382715, spread over 15,000 sq. yards. The plant is equipped with latest technologies for competitive advantage and complies with applicable laws and licenses. The company has successfully established its brand in TMT Bars manufacturing.
steel manufacturing
Objects of the Issue
- Funding capital expenditure requirements ₹1,200.00 lakhs p.22
- Funding Working capital requirements ₹3,046.05 lakhs p.22
- General Corporate Purpose ₹1,253.95 lakhs p.22
- Funding capital expenditure for expansion and modernization at 325, Karannagar, Kadi-Kalol Road, Taluka Kadi, Dist. Mehsana, Gujarat – 382715 ₹1,200.00 lakhs p.69
- Funding Working capital requirements ₹3,046.05 lakhs p.69
- General Corporate Purpose ₹1,253.95 lakhs p.69
- Not specified in this part of document
- Investment in subsidiary company – SGRMPL for funding capital expenditure requirements in relation to revival and modernisation of existing manufacturing facility at Kadi, Gujarat and working capital requirements (historical reference for promoter company) ₹740.00 lakhs p.195
Issue Structure
- Total Issue
- ₹5,600.00 lakhs
- Fresh Issue
- Up to 80,00,000 Equity Shares of face value ₹10 each at price of ₹70 per share, aggregating ₹5,600.00 lakhs
- Lot Size
- 2,000 shares; trading in multiples of 2,000 thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and supplies a portfolio of steel products, specifically TMT Bars and Round Bars, from its manufacturing facility. The business is high volume and low margin. Revenue generation is primarily from sales of these steel products to customers.
Business Segments
Manufacturing and supplying TMT Bars and Round Bars from the rolling mill section with an installed capacity of 30,000 MTPA.
Thermo-Mechanically Treated bars are high-strength reinforcement bars having a tough outer core and a soft inner core, widely used in construction projects. TMT bars are used in construction of dams, bridges, residential and commercial towers and major infrastructure projects. Properties include super ductility, superior strength, weldability, and earthquake resistance.
Round Bars manufactured using high quality mild steel in adherence with international quality standards, available in various diameters, extensively used for engineering components, forging industry, foundation bolts and shaftings.
Manufacturing of TMT bars and round bars through a rolling mill with installed capacity of 30,000 MTPA
SWOT Analysis
Strengths
- • Established brand presence in TMT bars manufacturing with geared manufacturing facility(p.23)
- • Modern production facility with latest technologies providing competitive edge(p.23)
- • Significant installed production capacity of 30,000 MTPA(p.23)
- • Well-educated and experienced management with deep industry expertise(p.89)
- • Group synergies providing access to networks and business opportunities(p.89)
- • Strategic location near major markets with access to raw materials(p.89)
- • Rapid historical revenue and EBITDA growth(p.89)
- • IS 1786:2008 certification for manufacturing quality standards(p.89)
- • Ownership of vacant land and existing infrastructure enabling faster expansion(p.90)
- • Experienced management team in steel industry(p.156)
- • Synergies from diversified business group(p.156)
- • Strategically located manufacturing facility(p.157)
- • IS 1786:2008 certification and modern technology(p.156)
Weaknesses
- • Dependence on few major customers representing 81.82% of FY2022 revenues(p.31)
- • Dependence on limited supplier base with 80.36% of materials from top 10 suppliers(p.39)
- • History of defaults on electricity dues and financial liabilities(p.32)
- • Low and volatile operating margins with PAT margin of 3.50% in FY2022(p.31)
- • Promoter litigation track record with past SEBI action and dissociation orders(p.30)
- • Negative operating cash flows of ₹1,447.98 lakhs in FY2022(p.32)
- • Significant unsecured loan of ₹1,104.09 lakhs repayable on demand from promoter(p.34)
- • Registered office on leasehold from group company with no long-term tenure guarantee(p.35)
- • High customer concentration with top 5 customers accounting for 81.82% of revenue(p.94)
- • Plant closure from 2001 to 2018 affecting operational continuity and experience(p.102)
- • Electricity connection previously discontinued due to non-payment of dues(p.102)
- • Relatively low capacity utilization of only 74.20% in FY 2021-22(p.94)
- • Heavy reliance on top customers(p.157)
- • Significant dependence on few customers (top 5 represent 64.45%)(p.164)
- • Promoter litigation and criminal cases pending(p.167)
- • Promoter(s) have business conflicts through group companies engaged in similar business(p.125)
- • High financial leverage(p.150)
- • Substantial unsecured borrowings from related parties at 0% interest(p.141)
- • Very low cash balance relative to operations(p.144)
Opportunities
- • Expansion plan with 30,000 MTPA additional capacity funded through IPO proceeds(p.23)
- • Working capital expansion opportunity with ₹3,046.05 lakhs allocated for working capital(p.23)
- • Development of domestic sales network in territories with lower transportation costs(p.31)
- • Large projected growth in Indian special steel market at 10.9% CAGR through 2035(p.84)
- • Rising demand for TMT bars driven by government infrastructure and housing initiatives(p.90)
- • Government production-linked incentive scheme for specialty steel attracting investments(p.86)
- • Planned capacity expansion to 45,000 MTPA leveraging existing infrastructure(p.70)
- • Expected increase in per capita steel consumption driven by infrastructure and construction growth(p.88)
- • Opportunity to expand geographical distribution beyond current regional presence(p.90)
- • Growing demand in infrastructure and construction sectors(p.157)
- • Expanding product offerings and geographic reach(p.157)
- • Abundant local raw material availability(p.157)
- • Established brand recognition in TMT bars(p.156)
Threats
- • Steel industry highly cyclical with volatility in steel prices affecting profitability(p.27)
- • Volatility in raw material prices particularly iron ore, sponge iron and scrap(p.27)
- • Missing critical regulatory approvals including Fire Department NOC and Contract Labour License(p.29)
- • Group company trading suspension history affecting brand reputation(p.30)
- • Intense competition from organized and unorganized sector competitors(p.41)
- • COVID-19 pandemic causing operational shutdowns and demand reduction(p.37)
- • Dependence on third-party transportation with rising costs and infrastructure limitations(p.37)
- • Stringent labour laws limiting workforce flexibility and cost control(p.40)
- • Exposure to interest rate volatility and debt covenant restrictions(p.42)
- • Government policy changes and regulatory uncertainties affecting steel sector(p.43)
- • Economic slowdown and inflation affecting demand and increasing production costs(p.46)
- • Foreign exchange fluctuations and capital market volatility(p.44)
- • Risks from inability to successfully implement proposed expansion and obtain regulatory clearances(p.71)
- • Industry cyclicality and dependency on construction sector demand(p.91)
- • Significant fluctuations in raw material and steel product prices(p.89)
- • Impact of COVID-19 pandemic on business operations and demand(p.95)
- • Macro-economic sensitivity and market cyclicality(p.157)
- • Intense competition from large players and unorganized sector(p.158)
- • Pricing pressure and competitive cost disadvantage(p.158)
- • Regulatory and approval dependencies(p.157)
- • COVID-19 pandemic impact on operations and demand(p.157)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ashoka Metcast Limited | Promoter/Promoter Group | 89.06% | 55.53% |
| Shalin Shah | Promoter | 9.06% | 5.65% |
| Ashok Shah | Promoter Group | 1.51% | 0.94% |
| Shalin Shah | Promoter | 9.06% | 5.65% |
| Ashoka Metcast Limited | Promoter | 89.06% | 55.53% |
| Ashoka Metcast Limited | Holding Company/Corporate Promoter | 88.99% | — |
| Shalin Shah | Promoter/Key Managerial Personnel | 9.06% | — |
| Ashoka Metcast Limited | Listed Promoter Company | — | — |
Leadership
Shalin Shah · Managing Director
Payal Pandya · Company Secretary and Compliance Officer
Subha Dash · Chief Financial Officer
Ashok Shah · Non-Executive Director
Rushabh Shah · Non-Executive Independent Director
Twinkle Chheda · Non-Executive Independent Director
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.
Rhetan TMT IPO FAQs
What is the lot size of Rhetan TMT IPO?
The minimum lot size of Rhetan TMT IPO is 2,000 shares. One lot costs ₹1,40,000 at the cut-off price.
When does Rhetan TMT IPO open and close?
Rhetan TMT IPO opened for subscription on 22 Aug 2022 and closed on 25 Aug 2022.
What is the listing date of Rhetan TMT IPO?
Rhetan TMT IPO listed on 05 Sep 2022.