Ratnaveer Precision Engineering Ltd IPO Debuts at a Premium

Ratnaveer Precision Engineering Ltd IPO Debuts at a Premium. Image/RPE website

Listing Date: 11 Sep 2023

On Monday, Ratnaveer Precision Engineering Ltd made its stock market debut, and the shares were listed at a significant premium. The NSE saw Ratnaveer’s share price listed at ₹123.20 per share, marking a substantial 25.7% increase from the issue price. Similarly, on the BSE, Ratnaveer’s share price debuted at ₹128 per share.

Here are some key details about the Ratnaveer Precision Engineering IPO:

IPO Subscription Period The Ratnaveer Precision Engineering IPO was open for subscription from Monday, September 4, and closed on Wednesday, September 6.

Anchor Investors Ahead of its IPO, Ratnaveer Precision Engineering raised approximately ₹49.5 crore from anchor investors on Friday, September 1.

IPO Price Band The IPO price band for Ratnaveer Precision Engineering was set in the range of ₹93 to ₹98 per equity share, with a face value of ₹10 each.

Lot Size The lot size for the Ratnaveer IPO was 150 equity shares, with multiples of 150 equity shares thereafter.

IPO Details The Ratnaveer Precision Engineering IPO consisted of a fresh issue of 13,800,000 shares, totaling ₹135.24 crore, and an offer for sale (OFS) portion of 3,040,000 shares worth ₹29.79 crore. The OFS shares were sold by promoter selling shareholder Vijay Ramanlal Sanghavi. The total issue size of the Ratnaveer IPO was ₹165.03 crores.

Utilization of Funds The net proceeds from the fresh issue were intended to fund the company’s working capital requirements and for general corporate purposes.

Lead Manager and Registrar Unistone Capital Private Ltd served as the Book Running Lead Manager (BRLM) for the offer, while Link Intime India Private Ltd acted as the offer’s registrar.

Grey Market Premium (GMP) As for the grey market premium (GMP) of Ratnaveer Precision IPO, it was reported at +52 higher than the previous trading session. This indicates that Ratnaveer Precision share prices were trading at a premium of ₹52 in the grey market on Monday, according to topsharebrokers.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ratnaveer Precision shares was ₹150 apiece, marking a substantial 53.06% increase from the IPO price of ₹98.

It’s worth noting that the grey market premium reflects investors’ willingness to pay more than the issue price for shares. The range for GMP was observed to be between ₹0 and ₹60, with the premium varying accordingly.