Ratnaveer Precision Engineering makes its market debut on September 11 after the listing was brought forward from September 14. Experts expect the stock to list with at least a 40 percent premium over the issue price of Rs 98 per share.
Ratnaveer Precision shares were trading in the grey market at a premium of 50 percent, said analysts on the condition of anonymity. The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing day.
“Considering robust demand by investors in all categories, we expect listing would be in the range of 40-50 percent gain,” said Prashant Tapse, senior VP-Research, at Mehta Equities.
The premium is justified on the back of the company’s niche SS cold-rolled products, which are widely used globally, a high-margin portfolio and investor-friendly IPO pricing, which leaves room for strong listing gains, he added.
Anushi Vakharia, Research Analyst at StoxBox, said the anticipated gains can be attributed to the company’s diverse product portfolio, large headroom for growth in end-user industries such as automotive, solar and wind power plants and oil and gas, higher efficiency due to backward integration and industry tailwinds in the Indian stainless-steel sector.
Analysts advise booking profits on the listing day.
The IPO was subscribed 93.99 times and received bids for 110.79 crore equity shares against the issue size of 1.17 crore.
Also read: Ratnaveer Precision Engineering IPO sees 94 times booking on final day
The IPO included a fresh issue of 17 lakh shares aggregating to Rs 75 crore and an offer for sale (OFS) of 94 lakh shares aggregating to Rs 415 crore.
The firm will use the fresh-issue proceeds to meet working capital requirements and for general corporate purposes. The OFS money will go to the selling shareholders.
The company manufactures stainless steel finished sheets, washers, solar roofing hooks, pipes, and tubes.
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