Ratnaveer Precision freezes at 5% upper circuit; zooms 32% over issue price

Ratnaveer Precision Engineering Limited (RPEL) made a strong stock market debut on Monday with the shares getting listed 31 per cent higher on the BSE. The stock listed at Rs 128 as against the issue price of Rs 98, while on NSE it was listed at Rs 123.2. 

Extending the gains, the stock was then locked in the upper circuit of 5 per cent at Rs 129.35 on the NSE. At 10:25 am; it was quoting at Rs 129.70, after hitting a high of Rs 134 in intra-day trade.

RPEL is a manufacturer of stainless steel products with a diverse range of products and designs. The company has a backward-integrated business model and a research and development (R&D) facility for new product development. It has also demonstrated strong financial performance over the past three years.

"The IPO was well-received by investors, with the issue being subscribed to 93.99 times. The company's strong fundamentals and good subscription levels are positive factors for this. Investors who participated in the IPO can consider booking profits, and those who want to hold may keep a stop-loss at around Rs 116", said  Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd.

REPL’s products find application across various industries including automotive, solar power, wind energy, power plants, oil & gas, pharmaceuticals, sanitary & plumbing, instrumentation, electro mechanics, architecture, building & construction, electrical appliances, transportation, kitchen appliances, and chimney liners.

The company operates in an industry, which is highly competitive and fragmented with low barriers to entry, and it competes with a range of organized and unorganized players, both at the national and regional level.

There are no listed companies that are exclusive Stainless-Steel manufacturer of finished sheets, washers, solar roofing hooks, pipes and tubes. However, listed peers who are in similar line of business and manufacturer of SS products in India, a set of listed peers are Jindal Stainless, M.M. Forgings Limited, Menon Bearings Limited, and Venus Pipes & Tubes Limited.