Ratnaveer Precision Engineering debuts with a premium of 31% at Rs 128 each on BSE; Becomes the first entity to make a T+3 listing

Ratnaveer Precision Engineering Limited, a prominent player engaged in the production of stainless-steel finished sheets, washers, solar roofing hooks, pipes, and tubes, is listed with a premium of 31% at Rs 128 per share on BSE. On the NSE, the stock debuted at Rs 123.20, indicating an increase of 26% compared to its initial public offering price of Rs 98 per share.

Moreover, Ratnaveer Precision Engineering achieved the distinction of being the first Indian entity to make its debut on Dalal Street with a T+3 settlement cycle.

At the time of writing this article, the Ratnaveer Precision Engineering stock is trading at Rs 126 on the BSE. Its intraday highs and lows are Rs 134 and Rs 123, respectively. The current market capitalisation of the company is Rs 612 crore.

Ratnaveer Precision Engineering produces stainless steel products serving various industries, including automotive, solar power, wind energy, power plants, oil & gas, pharmaceuticals, sanitary & plumbing, instrumentation, electromechanics, architecture, building & construction, electrical appliances, transportation, kitchen appliances, chimney liners, and more.

The company operates from four manufacturing units, with Unit-I and Unit-II situated in GIDC, Savli, Vadodara, Gujarat, Unit-III in Waghodia, Vadodara, Gujarat, and Unit-IV in GIDC, Vatva, Ahmedabad, Gujarat.

Let’s recapitulate the subscription history of the company, on the final day of the IPO window September 06, 2023, the IPO witnessed a subscription rate of 93.99 times. The public issue received an overwhelming response, with the retail category being subscribed 54 times, the QIB category achieving a subscription rate of 133 times, and the NII category reaching a subscription rate of 132 times.

The company had attracted Rs 49.51 crore from various anchor investors. The company has allocated 50.52 lakh equity shares at Rs 98 per share to anchor investors.

The price range for the IPO was set between Rs 93 and Rs 98, with a face value of Rs 10 per share and a lot size of 150 shares. The total size of the company’s IPO was Rs 165.03 Crore. The final share issue price of the company was fixed at Rs 98 each.

Following is the financial performance of the company: 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Considering the current market conditions Nifty is trading near its all-time high levels, investors who applied for listing gains have already earned 31% on the listing day alone and can choose to book the profit it has generated.

On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.