Ratnaveer Precision Engineering IPO Secures Rs 49.5 Crore from Anchor Investors

2 Sep 2023 , 10:05 AM

Gujarat-based Ratnaveer Precision Engineering successfully raised Rs 49.5 crore from six anchor investors on September 1, just a day before the official launch of its public issue. The anchor book garnered substantial interest from both domestic and foreign investors, with prominent participants including Societe Generale, Sixteenth Street Asian Gems Fund, Saint Capital Fund, Coeus Global Opportunities Fund, and Leading Light Fund VCC – The Triumph Fund.

The company officially announced that it had allocated a total of 50,52,000 shares to these anchor investors at a price of Rs 98 per share. Ratnaveer Precision Engineering, a manufacturer of stainless steel-based products, disclosed this allocation in an exchange filing, stating that the decision was made after consultations with its merchant bankers.

In the company’s own words, ‘The Board of Directors of the Company and Promoter Selling Shareholder at their meeting held on September 01, 2023, in consultation with the Book Running Lead Manager to the offer, has finalized the allocation of 50,52,000 equity shares to Anchor Investors at an anchor investor allocation price of Rs 98 per Equity Share (including share premium of Rs 88 per Equity Share).’

It’s worth noting that the anchor book forms a portion of the qualified institutional buyers (QIB) segment, which constitutes half of the total offering size. The remaining part of the offering is divided between high net worth individuals (HNIs) and retail investors, with a ratio of 30:70.

Ratnaveer Precision Engineering’s initial public offering (IPO) of 1.68 crore shares is set to open for subscription on September 4, with a closing date of September 6. The company aims to raise Rs 165.03 crore through the public issue at the upper price band. The IPO comprises a fresh issuance of 1.38 crore shares valued at Rs 135.24 crore and an offer-for-sale (OFS) of 30.4 lakh shares worth Rs 29.79 crore by promoter Vijay Ramanlal Sanghavi.

Out of the net fresh issue proceeds of Rs 85 crore, Ratnaveer Precision Engineering plans to utilize the majority for its working capital requirements, while the remaining funds will be allocated for general corporate purposes. The successful anchor book allocation demonstrates strong investor interest in the company’s offering and growth prospects.