Ratnaveer Precision Engineering Limited's Board of Directors has made significant capital restructuring decisions, approving multiple equity-related transactions that will strengthen the company's capital base and provide additional funding opportunities.

Equity Share Allotment

The company has successfully allotted 20.28 lakh (2,028,000) equity shares of face value ₹10 each at an issue price of ₹143 per equity share. This allotment was executed at a premium of ₹133 per share.

New Warrants Issue to Promoters

The board has approved the issuance of 72.32 lakh (7,232,704) warrants on a preferential basis to promoters and promoter group members. These warrants comply with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Extraordinary General Meeting Scheduled

To formalize these decisions, the company has scheduled an Extraordinary General Meeting (EGM) for January 10, 2025. The EGM will be conducted to seek shareholder approval for these capital restructuring initiatives.

These capital restructuring initiatives demonstrate Ratnaveer Precision Engineering's strategic approach to strengthening its financial position while providing growth capital for future business expansion.

Ratnaveer Precision Engineering Limited , a leading manufacturer of stainless steel products, has announced robust financial results for the second quarter, along with growth plans for the coming years.

Q2 Financial Highlights

The company reported impressive year-on-year growth, with key financial metrics showing significant improvement:

Expansion and Future Outlook

Ratnaveer Precision has outlined a growth strategy, targeting revenue increases over the next few years:

• Current Year: Rs. 1,100.00 crores (projected)
• Next Year: Rs. 1,500.00 crores
• Following Year: Rs. 1,800.00 crores

To support this growth, the company has completed a Rs. 48.00 crore CAPEX in February and plans an additional Rs. 68.00 crore CAPEX starting December, with completion targeted by July.

Diversified Product Portfolio

Ratnaveer operates across three main product categories:

1. Fasteners (nuts, bolts, washers)
2. Tubes and pipes
3. Sheet metal components

These products cater to various industries, including automotive, railway, marine, aviation, and defense sectors.

Value-Added Products and Margin Improvement

The company is focusing on increasing its share of value-added products:

• Current contribution: 8% of revenue
• Target: Rs. 200.00 crores out of Rs. 1,500.00 crores by next year

This shift towards higher-margin products is expected to improve the company's overall profitability. Ratnaveer aims to increase its EBITDA margin from the current 10.5% to 13.5% by next year.

Funding and Expansion Plans

To fuel its growth plans, Ratnaveer is considering the following:

• QIP funding of up to Rs. 211.00 crores for working capital requirements
• Exploring acquisition opportunities in the aviation and automobile sectors
• Investing Rs. 45.00 crores in a new copper-clad laminates project, targeting Rs. 108.00 crores in revenue with 20% EBITDA margins

Management Commentary

Vijay Sanghavi, Managing Director of Ratnaveer Precision Engineering Limited, stated, "We are committed to our growth trajectory and are confident in achieving our targets. Our focus on value-added products and strategic expansions will drive our profitability and market position in the coming years."

The company's management expressed optimism about maintaining its growth momentum, citing strong demand from various sectors and its diversified product portfolio as key drivers.

As Ratnaveer Precision Engineering continues to execute its expansion plans and focus on higher-margin products, investors will be closely watching the company's ability to meet its growth targets in the competitive stainless steel industry.