What you must know about Ramdevbaba Solvent IPO?

Tanushree Jaiswal Tanushree Jaiswal 16th April 2024 - 10:07 am
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Ramdevbaba Solvent Limited, established in 2008, produces & distributes physically refined rice bran oil. company manufactures, distributes, markets, & sells rice bran oil to FMCG firms like Mother Dairy Fruit & Vegetable Private Limited, Marico Limited, & Empire Spices & Foods Ltd.

Ramdevbaba Solvent company also manufactures, promotes, & sells rice bran oil under its own labels "Tulsi" & "Sehat" through thirty-eight (38) distributors, who then sell to other merchants throughout Maharashtra. firm also produces de-oiled rice bran (DORB), by-product of rice bran oil extraction, which it offers as animal, poultry, & fish feed throughout Maharashtra, Goa, Gujarat, Madhy Pradesh, Andhr Pradesh, Telangana, Karnataka, Kerala, & Tamil Nadu.

Highlights of Ramdevbaba Solvent IPO Issue

  • Ramdevbaba Solvent IPO, valued at Rs 50.27 crores, comprises fresh issue of 59.14 lakh shares.
  • Ramdevbaba Solvent IPO's subscription period begins on April 15, 2024, & concludes on April 18, 2024, with allotment anticipated by Friday, April 19, 2024. It will be listed on NSE SME, with tentative listing date set for Tuesday, April 23, 2024.
  • Ramdevbab Solvent IPO offers shares priced in range of ₹80 to ₹85 per share, with minimum lot size of 1600 Shares. Retail investors need minimum investment of ₹136,000, while HNIs must invest in 2 lots (3,200 shares), totaling ₹272,000.
  • Choice Capital Advisors Pvt Ltd serves as book running lead manager, with Bigshare Services Pvt Ltd acting as registrar. Choice Equity Broking operates as market maker for Ramdevbaba Solvent IPO.

 

Company plans to use Net Proceeds from Issue to set up new manufacturing facility, repay outstanding borrowings, fund working capital, & for general corporate purposes.

Promoter holdings & investor quota allocation quota

Prashant Kisanlal Bhaiya, Nilesh Suresh Mohata, & Tushar Ramesh Mohat are promoters of company. Ramdevbaba Solvent IPO provides 5,913,600 shares. 1,120,000 (18.94%) to QIB; 872,000 (14.75%) to NII; 1,960,000 (33.14%) to RII; & 1,680,000 (28.41%) to Anchor investors.

Anchor Investor Shares Offered

1,680,000 (28.41%)

Market Maker Shares Offered

281,600 (4.76%)

QIB Shares Offered

1,120,000 (18.94%)

NII (HNI) Shares Offered

872,000 (14.75%)

Retail Shares Offered

1,960,000 (33.14%)

Total Shares Offered

5,913,600 (100%)

 

Lot sizes for investing in Ramdevbaba Solvent IPO

 Ramdevbaba Solvent IPO offers minimum lot size of 1600 shares, with bids accepted in multiples of this amount. Retail investors can invest minimum of ₹136,000, equivalent to 1600 shares. For High Net Worth Individuals (HNI), minimum investment is 2 lots, totalling 3,200 shares, or ₹272,000.

Application

Lots

Shares

Amount

Retail (Min)

1

1600

₹136,000

Retail (Max)

1

1600

₹136,000

HNI (Min)

2

3,200

₹272,000

Key dates for Ramdevbaba Solvent IPO & how to apply?

Ramdevbaba Solvent IPO is set to commence on April 15, 2024, & conclude on April 18, 2024. basis of allotment is scheduled for April 19, 2024, followed by initiation of refunds & credit of shares to Demat accounts on April 22, 2024. anticipated listing date on NSE SME is April 23, 2024. Investors should ensure UPI mandate confirmation by 5 PM on April 18, 2024, to participate in IPO.

Investors can apply either through their existing trading account or ASB application can be directly logged through internet banking account. This can only be done through authorized list of self-certified syndicate banks (SCSB). In ASB application, requisite amount is only blocked at time of application & necessary amount is debited only on allotment. Investors can apply in retail quote (up to ₹2 lakh per application) or in HNI / NII quot (above ₹2 lakh). Minimum lot sizes will be known after pricing.

Financial highlights of Ramdevbaba Solvent Ltd

Table below captures key financials of Ramdevbaba Solvent Ltd for last 3 completed financial years & 9 months of FY24.

Period Ended

31 Dec 2023

31 Mar 2023

31 Mar 2022

31 Mar 2021

Assets

20,341.24

19,062.61

13,134.86

10,125.05

Revenue

46,569.81

70,433.41

58,525.46

42,717.32

Profit After Tax

828.90

1,300.15

659.15

617.06

Net Worth

6,857.15

4,783.25

3,483.10

2,823.95

Reserves & Surplus

5,235.97

4,324.52

3,024.37

2,365.22

Total Borrowing

9,998.78

9,922.63

6,485.67

4,474.16

Dat Source: Company RHP filed with SEBI (All ₹ figures are in lakh)

There are few key takeaways from financials of Ramdevbaba Solvent Ltd which can be enumerated as under:

  1. Ramdevbab Solvent Ltd has shown significant growth in its financial performance over past three completed financial years & first nine months of FY24. Company's assets have steadily increased, indicating expansion & investment in its operations. Revenue has shown consistent upward trend, reflecting growing sales & possibly market demand for its products or services.
  2. Moreover, company has been able to improve its profitability, as evidenced by increasing profit after tax figures. This indicates efficient cost management or possibly higher margins. Growth in net worth & reserves & surplus suggests that company has been able to retain earnings & strengthen its financial position over time.
  3. However, it's essential to note increase in total borrowing, which could indicate that company is financing its growth through debt. While borrowing can be strategic tool for expansion, it also increases financial risk, particularly if not managed effectively.

 

Overall, based on financial data provided, Ramdevbaba Solvent Ltd appears to be performing well, showing growth in key financial metrics. However, investors should carefully consider factors such as company's ability to manage its debt levels & sustain its growth trajectory before making investment decisions.

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