Company Overview
Ratnaveer Precision Engineering Limited (BSE: 543978, NSE: RATNAVEER) proposes a rights issue of up to 1,24,99,669 fully paid-up equity shares at ₹264 per share, aggregating to ₹329.99 crore. The issue offers 7 shares for every 40 held as of August 26, 2026 record date, with subscription period from September 2-9, 2026.
Rights Issue Details
Key Parameters:
- Record Date: August 26, 2026
- Ratio: 7 rights equity shares for every 40 fully paid-up equity shares held
- Issue Opening Date: September 2, 2026
- Issue Closing Date: September 9, 2026
- Last Date for Market Renunciation: September 3, 2026
- Credit of Shares: September 11, 2026
- Listing Date: September 15, 2026
Utilization of Proceeds:
Net proceeds of approximately ₹327.99 crore (after deducting issue expenses of ₹2 crore) will be utilized for working capital requirements (₹255 crore) and general corporate purposes (₹72.99 crore).
Litigation Disclosure
The company faces significant ongoing litigation involving ₹17.17 crore across multiple cases:
Customs Duty Matters:
- Appeal pending before High Court involving recovery of customs duty with interest
- Show cause notice from Directorate of Revenue Intelligence alleging ineligible customs duty benefits, with confirmed demand of ₹4.09 million differential duty and penalties
Sales Tax/VAT Matters:
14 cases totaling approximately ₹2.5 crore involving various demands from FY 2003-04 to 2017-18
GST Matters:
- Show cause cum demand notice for ₹4.44 crore regarding ITC claimed for expenses incurred during IPO
- Additional show cause notice for FY 2018-19 to 2024-25 due to Suo moto cancellation and E-way bill issues
Financial Position
Recent Financial Performance:
| Particulars | FY2026 | FY2025 | FY2024 |
| Revenue from Operations (₹ million) | 10,687.36 | 8,918.78 | 5,953.79 |
| Profit After Tax (₹ million) | 643.05 | 468.15 | 310.50 |
| EPS Basic (₹) | 11.11 | 9.31 | 7.61 |
Debt Position (as of March 31, 2026):
- Total Debt: ₹334.98 crore
- Debt to Equity Ratio: 0.50:1 (pre-issue)
Risk Factors
The document discloses 67 risk factors including:
- Dependence on limited suppliers without long-term contracts
- Customer concentration (top 10 customers contribute 56% of sales)
- Geographic concentration (85.41% revenue from western India)
- Working capital intensive business with high debt-equity ratio (0.67 as of April 30, 2026)
- High raw material costs (97.49% of total expenses in April 2026)
Corporate Governance
No directors are associated with securities market prohibitions, declared as fugitive economic offenders, or identified as wilful defaulters by RBI. The company maintains compliance with SEBI ICDR Regulations and has no outstanding investor complaints.