Ratnaveer Precision Engineering has marked a remarkable debut on the stock market, with its shares opening at a substantial 30.61% premium over the IPO price of Rs 98 per share. The stock kicked off trading at Rs 128 on the BSE and Rs 123.20 on the NSE, all on the significant date of September 11.
This stellar listing can be attributed to the strong interest generated by the IPO, combined with the positive momentum in the broader market. The IPO witnessed an overwhelming response, with investors bidding for a staggering 110.79 crore equity shares, translating to an impressive 93.99 times oversubscription in comparison to the offering size of 1.17 crore shares.
Established in 2002, Ratnaveer Precision Engineering Limited specializes in manufacturing stainless steel (SS) products, with a focus on producing finished sheets, washers, solar roofing hooks, pipes, and tubes.
The company has demonstrated impressive financial growth, with its revenue from operations registering a Compound Annual Growth Rate (CAGR) of 17.3% from FY20 to FY23. In FY23, consolidated sales witnessed a substantial 12% year-on-year increase, reaching Rs 479.75 crore, while net profit soared by an impressive 164% YoY to Rs 25.04 crore.
Notably, Ratnaveer Precision Engineering stands as the only listed company exclusively dedicated to manufacturing finished sheets, washers, solar roofing hooks, pipes, and tubes, a unique position acknowledged by Capital Market.
Among its listed peers in the same business segment are Jindal Stainless, M.M. Forgings Limited, Menon Bearings Limited, and Venus Pipes & Tubes Limited.
When considering the issue price of Rs 98, Ratnaveer’s Price-to-Earnings (P/E) ratio calculates to 19x. In comparison, MM Forgings trades at a Trailing Twelve Months (TTM) P/E of 17.6x, Menon Bearings at 26.2x, Venus Pipes & Tubes at 58.7x, and Jindal Stainless trades at 17.3x.
This impressive debut and strong financial performance position Ratnaveer Precision Engineering as an exciting player in the stainless steel industry, attracting significant investor interest and signaling a promising future ahead.
