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NEW DELHI: The initial public offering (IPO) of Ratnaveer Precision Engineering Ltd (RPEL), a stainless steel product manufacturer, is opening for public subscription today.. Here are some frequently asked questions (FAQs) about the IPO:
What is the price band and issue size of the IPO?
The price band of the IPO is Rs 93 to Rs 98 per equity share, and the issue size is Rs 165.03 crore. The IPO comprises a fresh issue of 1.38 crore equity shares and an offer for sale of 0.18 crore equity shares by existing shareholders.
What are the key dates of the IPO?
The IPO will open for subscription on September 4, 2023, and close on September 6, 2023. The basis of allotment will be finalized on September 9, 2023, and the refunds or unblocking of funds will be done on September 10, 2023. The credit of shares to demat accounts will be done on September 13, 2023, and the listing of shares on BSE and NSE will be done on September 14, 2023.
What are the objectives of the IPO?
The company intends to use the net proceeds from the fresh issue for working capital requirements, general corporate purposes, and issue expenses. The company will not receive any proceeds from the offer for sale.
What is the lot size and minimum order quantity of the IPO?
The lot size of the IPO is 150 shares, and the minimum order quantity is one lot. This means that investors can apply for a minimum of 150 shares and in multiples thereof. The maximum order quantity for retail investors is 13 lots or 1950 shares.
What are the reservation details of the IPO?
The IPO has a reservation of up to 50% for qualified institutional buyers (QIBs), up to 15% for non-institutional investors (NIIs), and up to 35% for retail individual investors (RIIs). There is also a reservation of up to 75,000 equity shares for eligible employees.
What are the financial highlights of the company?
The company has posted steady growth in its revenue and profit in the last three fiscal years. Its revenue from operations increased from Rs 223.62 crore in FY21 to Rs 301.01 crore in FY23, representing a compound annual growth rate (CAGR) of 16.17%. Its profit after tax increased from Rs 9.72 crore in FY21 to Rs 19.97 crore in FY23, representing a CAGR of 42.31%. Its earnings per share (EPS) increased from Rs 4.86 in FY21 to Rs 9.99 in FY23.
What are the competitive strengths of the company?
The company has several competitive strengths, such as:
– A niche player in stainless steel cold-rolled products that are widely used globally.
– A diversified product portfolio with over 2500 SKUs of stainless steel washers, sheets, pipes, tubes, and solar mounting hooks.
– A strong customer base across domestic and international markets, including Europe, North America, South America, Asia Pacific, and Africa.
– A backward integrated manufacturing process with melting and rolling units that ensure quality control and cost efficiency.
– An experienced management team with a track record of operational excellence and innovation.
Who are the book running lead managers and registrar of the IPO?
The book running lead managers of the IPO are ICICI Securities Limited and JM Financial Limited. The registrar of the IPO is Link Intime India Private Limited.
How to apply for the IPO?
Investors can apply for the IPO through online or offline modes. Online mode involves using net banking or UPI platforms of authorized banks or brokers. Offline mode involves filling up an application form and submitting it along with a cheque or demand draft to a bank or broker branch.
What is the grey market premium (GMP) of the IPO?
The grey market premium (GMP) of the IPO is an indicator of the expected listing price of the shares based on unofficial trading in the secondary market before listing. As of September 3, 2023, the GMP of Ratnaveer Precision Engineering IPO was around Rs 25 to Rs 30 per share, implying a listing gain of around 25% to 30% over the upper price band.
However, investors should note that GMP is not an official measure and may change depending on market conditions and demand-supply factors.
(With inputs from agencies)
What is the price band and issue size of the IPO?
The price band of the IPO is Rs 93 to Rs 98 per equity share, and the issue size is Rs 165.03 crore. The IPO comprises a fresh issue of 1.38 crore equity shares and an offer for sale of 0.18 crore equity shares by existing shareholders.
What are the key dates of the IPO?
The IPO will open for subscription on September 4, 2023, and close on September 6, 2023. The basis of allotment will be finalized on September 9, 2023, and the refunds or unblocking of funds will be done on September 10, 2023. The credit of shares to demat accounts will be done on September 13, 2023, and the listing of shares on BSE and NSE will be done on September 14, 2023.
What are the objectives of the IPO?
The company intends to use the net proceeds from the fresh issue for working capital requirements, general corporate purposes, and issue expenses. The company will not receive any proceeds from the offer for sale.
What is the lot size and minimum order quantity of the IPO?
The lot size of the IPO is 150 shares, and the minimum order quantity is one lot. This means that investors can apply for a minimum of 150 shares and in multiples thereof. The maximum order quantity for retail investors is 13 lots or 1950 shares.
What are the reservation details of the IPO?
The IPO has a reservation of up to 50% for qualified institutional buyers (QIBs), up to 15% for non-institutional investors (NIIs), and up to 35% for retail individual investors (RIIs). There is also a reservation of up to 75,000 equity shares for eligible employees.
What are the financial highlights of the company?
The company has posted steady growth in its revenue and profit in the last three fiscal years. Its revenue from operations increased from Rs 223.62 crore in FY21 to Rs 301.01 crore in FY23, representing a compound annual growth rate (CAGR) of 16.17%. Its profit after tax increased from Rs 9.72 crore in FY21 to Rs 19.97 crore in FY23, representing a CAGR of 42.31%. Its earnings per share (EPS) increased from Rs 4.86 in FY21 to Rs 9.99 in FY23.
What are the competitive strengths of the company?
The company has several competitive strengths, such as:
– A niche player in stainless steel cold-rolled products that are widely used globally.
– A diversified product portfolio with over 2500 SKUs of stainless steel washers, sheets, pipes, tubes, and solar mounting hooks.
– A strong customer base across domestic and international markets, including Europe, North America, South America, Asia Pacific, and Africa.
– A backward integrated manufacturing process with melting and rolling units that ensure quality control and cost efficiency.
– An experienced management team with a track record of operational excellence and innovation.
Who are the book running lead managers and registrar of the IPO?
The book running lead managers of the IPO are ICICI Securities Limited and JM Financial Limited. The registrar of the IPO is Link Intime India Private Limited.
How to apply for the IPO?
Investors can apply for the IPO through online or offline modes. Online mode involves using net banking or UPI platforms of authorized banks or brokers. Offline mode involves filling up an application form and submitting it along with a cheque or demand draft to a bank or broker branch.
What is the grey market premium (GMP) of the IPO?
The grey market premium (GMP) of the IPO is an indicator of the expected listing price of the shares based on unofficial trading in the secondary market before listing. As of September 3, 2023, the GMP of Ratnaveer Precision Engineering IPO was around Rs 25 to Rs 30 per share, implying a listing gain of around 25% to 30% over the upper price band.
However, investors should note that GMP is not an official measure and may change depending on market conditions and demand-supply factors.
(With inputs from agencies)
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