Ratnaveer Precision Engineering

About Ratnaveer Precision Engineering Limited IPO  Incorporated in 2002, Ratnaveer Precision Engineering manufactures stainless steel products such as finished sheets, washers, solar roofing hooks, pipes and tubes. These products have applications in over fifteen industries such as automotive, wind and solar energy, pharmaceutical and construction.  The company also exports its products, which accounted for 15%, 19% and 19% of its total revenue from operations in FY21, FY22 and FY23 respectively.  It has four manufacturing units located in Vadodara and Ahmedabad. While two units are used for manufacturing, the other two are dedicated to processing the byproducts and converting them back into raw materials. This allows the company to be one of the few to have a backward integration business model.  Plus, India is the second largest consumer of finished steel, driven by growing demand in the construction segment, which makes it a favorable market for Ratnaveer Precision Engineering. The company has seen a CAGR rise of 10% and 66% in its revenue from operations and profit, respectively, between FY21 and FY23. It also had an EBITDA margin of 9% in FY23.  And now, Ratnaveer Precision Engineering Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised for funding capital expenditure and general corporate purposes. Its shares will be listed on the NSE and the BSE.  Here are key details about the Ratnaveer Precision Engineering IPO:     Company Name  Ratnaveer Precision Engineering   Company Type  Private    Company Established On  2002   Ratnaveer Precision Engineering IPO Opening Date  4th September, 2023    Ratnaveer Precision Engineering IPO Closing Date  6th September 2023   Ratnaveer Precision Engineering IPO Allotment Status  9th September 2023    Credit of Shares to the Demat Account  9th September 2023   Ratnaveer Precision Engineering IPO Listing Date  11th September,2023    Ratnaveer Precision Engineering IPO Face Value  ₹ 10 per share   Ratnaveer Precision Engineering IPO Lot Size  150 shares    Ratnaveer Precision Engineering IPO Issue Size  Approx ₹165 crore   Ratnaveer Precision Engineering IPO to be Listed on  BSE, NSE    Ratnaveer Precision Engineering IPO Price band  ₹93 – ₹98        Financial snapshot     Particulars  FY 21  FY 22  FY 23    Revenue  ₹ 359 crore  ₹ 426 crore  ₹ 479 crore    Net Profit  ₹ 5.4 crore  ₹ 9.4 crore  ₹ 25 crore               A quick look at Ratnaveer Precision Engineering Limited IPO’s strengths, risks and threats  Strengths   A business model focused on backward integration wherein 11% of raw material was generated through backward integration in FY23. This helps achieve efficiency in production.  Consistent financial performance with a CAGR rise of 14% in its revenue from operations between FY11 and FY23.  Customer diversification as it sells its products to countries like Germany, UK, Spain and Netherlands.  Wide product portfolio and multiple designs comprising over 2,500 SKUs of SS washers.  The company has an in-house R&D facility, which helps develop product tools and molds.   Risks and threats   Pricing in the steel industry is subject to market demand, volatility and economic conditions. Fluctuations in prices could impact revenue and profitability of the company.  Company’s sales are concentrated to few customers, with the top 10 customers accounting for over 49% of its revenue from operations. Further, company does not enter into long-term arrangements with its clients.  Operates a capital-intensive and high volume-low margin business wherein its revenue from operations was ₹479 crore but its profit was ₹25 crore in FY23.  Has experienced negative cash flows from both investing and operating activities consecutively in the last three years.  Operates in a highly competitive and fragmented industry with low barriers to entry.            Ratnaveer Precision Engineering Limited IPO details  | Ratnaveer Precision Engineering Limited IPO date  According to the offer document filed by the company with the SEBI, the Ratnaveer Precision Engineering IPO’s opening date – in other words, the Ratnaveer Precision Engineering IPO launch date – will be 4th September 2023. The Ratnaveer Precision Engineering IPO closing date is 6th September 2023. After this, investors will be updated about the allotment status on 11th September 2023.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 13th September 2023. The Ratnaveer Precision Engineering IPO listing date is 14th September 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  | Ratnaveer Precision Engineering Limited IPO price band  The IPO is an offer for sale as well as a fresh issue. The Ratnaveer Precision Engineering IPO price band has been set between ₹93 and ₹98 per share. Interested investors can choose a price within this band to apply for the IPO.  The Ratnaveer Precision Engineering IPO listing price will be determined on 14th September 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Ratnaveer Precision Engineering Limited IPO lot size  The Ratnaveer Precision Engineering IPO details have been declared. The Ratnaveer Precision Engineering IPO lot size is set at 150 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Ratnaveer Precision Engineering IPO issue size is approx ₹165 crore.           How to pre-apply for the Ratnaveer Precision Engineering Limited IPO?  You can pre-apply for the Ratnaveer Precision Engineering IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘ Ratnaveer Precision Engineering IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Ratnaveer Precision Engineering IPO?  If you are interested in this investment opportunity but unsure how to apply for the Ratnaveer Precision Engineering IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Ratnaveer Precision Engineering IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘ Ratnaveer Precision Engineering IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Ratnaveer Precision Engineering IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Ratnaveer Precision Engineering IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Ratnaveer Precision Engineering IPO allotment status will be mentioned            Open a demat account with Upstox to apply for the Ratnaveer Precision Engineering IPO  To apply for the Ratnaveer Precision Engineering IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?            Upstox – trading app to apply for the Ratnaveer Precision Engineering IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Ratnaveer Precision Engineering IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.