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Ratnaveer Precision Engineering’s rights issue aims to bolster its working capital, a critical need for a growing manufacturing entity. The company is also strategically expanding into the Copper Clad Laminate (CCL) segment, targeting high-growth sectors like electronics and defense. This diversification, coupled with existing capacity and global reach, presents a potential growth trajectory. However, investors should consider the dilution impact of the rights issue and monitor the successful execution of its expansion plans, particularly the CCL project, which carries its own inherent risks and capital requirements.
Quick Summary
- Ratnaveer Precision Engineering is preparing a rights issue.
- The issue is priced at **INR 264** per share.
- Funds will primarily support working capital needs.
- The record date for the issue is **August 26, 2026**.
Ratnaveer Precision Engineering, a Gujarat-based manufacturer of stainless steel products, is gearing up for a rights issue. The company has set the rights issue price at **INR 264** per share. This move aims to raise approximately **INR 329.99 crore** by offering **1,24,99,669** equity shares.
The proposed rights issue offers existing shareholders the chance to acquire **7 equity shares for every 40 equity shares** held on the record date. The record date has been fixed for **August 26, 2026**. The payment for the shares will be fully payable at the time of application.
Proceeds from this capital raise are earmarked for incremental working capital requirements, totaling **INR 255 crore**. The remaining funds will be allocated for general corporate purposes.
Ratnaveer Precision Engineering, established in **2002**, boasts over two decades of experience in manufacturing stainless steel finishing sheets, washers, sheet metal components, tubes, pipes, and fasteners. Its diverse product portfolio caters to a wide array of industries, including automotive, railways, aerospace, pharmaceuticals, and renewable energy.
The company operates an integrated manufacturing setup, with backward integration in its washer segment enhancing production flexibility and quality control. Ratnaveer has a current manufacturing capacity of **41,000 metric tons per annum (MTPA)**. Its global footprint extends to over **31 countries**.
Financially, the company projects revenue growth from **INR 595 crore in FY2024** to **INR 1,069 crore in FY2026**. Net income is also expected to rise from **INR 31 crore to INR 64 crore** over the same period. Operating margins are anticipated to remain stable at **10%**.
The rights issue price of **INR 264** compares to the market price of **INR 160.95** at the time of rights issue approval, suggesting a premium. The dilution factor is estimated at **1.18**.
The company’s promoters include Mr. Vijay Ramanlal Sanghavi. The registrar for the rights issue is MUFG INTIME (LINK INTIME) INDIA PRIVATE LIMITED.
Key Rights Issue Details
- Rights Issue Price: INR 264 per share
- Total Issue Size: INR 329.99 crore
- Number of Shares: 1,24,99,669 shares
- Entitlement: 7 equity shares for every 40 equity shares held
- Record Date: August 26, 2026
- Face Value: INR 10 per share
- Use of Proceeds: Incremental working capital (INR 255 crore), General corporate purposes
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