Ratnaveer Precision Engineering Limited (BSE: 543978, NSE: RATNAVEER) has proposed a ₹330 crore rights issue of equity shares, approved by the board on June 11, 2026 under Section 62(1)(a) of Companies Act, 2013. The company seeks in-principle approval for the issue, which will involve issuing [•] equity shares of face value ₹10.00 each at a price of ₹[•] per share in the ratio of [•] rights shares for every [•] existing shares held as of record date [•].
Financial Highlights & Business Overview
The company reported FY2026 revenue of ₹10,687.36 million with net profit of ₹643.05 million. It operates in stainless steel product manufacturing with four facilities in Gujarat totaling 41,000 MTPA capacity, exporting to over 31 countries. Debt position shows total borrowings of ₹3,349.76 million with debt-to-equity ratio of 0.50:1 as of March 31, 2026. Outstanding creditor dues stand at ₹222.38 crores as of the same date.
Issue Details & Utilization
Objects of the issue include ₹255.00 crores for incremental working capital requirements and general corporate purposes (not exceeding 25% of gross proceeds). Estimated deployment is ₹119.00 crores in FY2026-27 and ₹136.00 crores in FY2027-28. Promoter Mr. Vijay Ramanlal Sanghavi (current holding 42.89%) intends to subscribe to his full entitlement but will not subscribe to unsubscribed portion.
Regulatory Compliance & Approvals
The company has obtained necessary in-principle approvals from BSE Limited and National Stock Exchange of India Limited. No material fraud has been reported since incorporation, and no directors/promoters are associated with securities market prohibitions. The issue complies with SEBI ICDR Regulations and Companies (Significant Beneficial Ownership) Rules, 2018.
Application Process & Timeline
The rights issue will utilize mandatory ASBA process through designated SCSB branches or online platforms, with Axis Bank as banker to the issue. Rights entitlements will be credited in dematerialized form only (RE-ISIN [•]) with trading permitted through on-market and off-market renunciation. MUFG Intime India Private Limited serves as registrar, and Crisil Ratings Limited as monitoring agency.
Risk Factors & Litigation
The company faces 33 material litigation cases against it involving ₹176.07 million and significant tax proceedings (29 cases involving ₹1,716.78 million). Risk factors include supplier dependence without long-term contracts, customer concentration, export revenue exposure (5.16% in FY2026), geographic concentration in western India, and working capital intensive operations. Minimum subscription requirement is 90% of issue size, with full refund required if not met.