Ratnaveer Precision IPO Day 2: Issue subscribed 12.19 times so far

5 Sep 2023 , 12:35 PM

Ratnaveer Precision Engineering’s initial public offering (IPO) received a robust reception from investors within the first few hours of its opening on September 4. The IPO, valued at Rs 165 crore, witnessed significant interest, particularly from retail and non-institutional investors. Click here to apply the IPO.

On the opening day, the IPO garnered a subscription rate of 12.19 times, as per data available on BSE. By 12:15 PM on the second day of bidding, investors had purchased 14.37 crore equity shares, surpassing the offer size of 1.17 crore shares, resulting in a subscription rate of 5.77 times.

Retail investors and High Net Worth Individuals (HNIs) showed substantial enthusiasm for the IPO, subscribing 14.89 times and 22.03 times their allotted quotas, respectively. In contrast, the portion designated for qualified institutional buyers (QIBs) had a subscription rate of only 0.10 times.

Ratnaveer Precision Engineering, a manufacturer of stainless steel-based products, allocated half of the issue size to qualified institutional buyers and 15% to HNIs, with the remaining 35% reserved for retail investors.

The company adjusted the issue size from 1.68 crore shares to 1.17 crore shares after raising Rs 49.5 crore from the anchor book, which is part of the QIB category, a day prior to the IPO’s opening. The net proceeds from the fresh issue will primarily be used for working capital requirements, amounting to Rs 85 crore. The remaining funds, after accounting for issue expenses, will be directed towards general corporate purposes, while the money from the offer for sale (OFS) will go to selling shareholders.

Ratnaveer Precision Engineering, with four manufacturing units in Gujarat, supplies finished sheets, washers, solar roofing hooks, pipes, and tubes to various industries, including building and construction, power, automotive, pharmaceuticals, oil and gas, electrical appliances, and kitchen appliances.