Ratnaveer Precision made a fantastic debut on the bourses today; as against the IPO price of Rs.98, the stock got listed on the BSE at Rs.128, rising to Rs.134.
This listing was expected as it had received a great response, subscribing 93.99 times. Non-institutional investors and qualified institutional buyers (QIBs) subscribed to the issue by over 130 times each while the retail investor portion was subscribed by 53.96 times.
Gujarat based Ratnaveer Precision Engineering, formerly Ratnaveer Metals, manufactures stainless steel products like finishing sheets, washers, tubes and pipes, with finishing sheets accounting for approximately 65%, washers ~20% and tubes and pipes roughly 10% of revenue.
In our IPO Analysis, we had concluded, “Poor fundamentals and expensive valuation, make the IPO an avoid.”