Ratnaveer Precision Engineering IPO oversubscribe in the first two hours

4 Sep 2023 , 12:16 PM

Ratnaveer Precision Engineering’s initial public offering (IPO) witnessed remarkable demand, becoming fully subscribed within just one hour of opening on September 4. This overwhelming response was observed from both high net-worth individuals and retail investors, who eagerly participated in the bidding process. In the initial two hours, the IPO garnered a remarkable oversubscription rate of 1.65 times.

The Gujarat-based company aims to raise Rs 165.03 crore through this IPO at the upper end of the price band. The IPO is structured to include a fresh issue of 1.38 crore shares, valued at Rs 135.24 crore, in addition to an offer-for-sale (OFS) of 30.4 lakh shares. The pricing range for the offering has been established at Rs 93-98 per share, offering investors a range of options to participate in this highly sought-after opportunity.

Check the live subscription status of Ratnaveer Precision Engineering IPO on day 1 by 12 PM in the table provided below:

Category	No. of shares offered / reserved	No. of shares bid for	No. of times of total meant for the category
Qualified Institutional Buyers (QIBs)	33,68,000	10,500	0
Non Institutional Investors(NIIS)	25,26,000	41,21,400	1.63
Retail Individual Investors (RIIs)	58,94,000	1,53,50,250	2.6
Total	1,17,88,000	1,94,82,150	1.65

(Source: BSE)

The company intends to allocate the funds generated from the fresh issue towards covering its working capital needs, totaling Rs 85 crore, and for general corporate purposes. On the other hand, the proceeds from the Offer for Sale (OFS) will be directed to the selling shareholders.

In a pre-IPO placement, the company successfully secured Rs 49.5 crore from six anchor investors, which included prominent names such as Societe Generale, Sixteenth Street Asian Gems Fund, Saint Capital Fund, Coeus Global Opportunities Fund, and Leading Light Fund VCC – The Triumph Fund. This investment was finalized on September 1, further reinforcing investor confidence in the company’s potential and growth prospects.