Ramdevbaba Solvent Ltd IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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Ramdevbaba Sol.

CMP

101.10

-2.70 (-2.60%)

  • DRHP
₹85

Offer Price

₹ 50.27 Cr

Issue Size

₹ 1,36,000

Min Investment

1,600

Lot size

Time Line

  • 15
    Apr 2024
    Open
  • 18
    Apr 2024
    Close
  • 19
    Apr 2024
    Finalisation of Basis of Allotment
  • 22
    Apr 2024
    Initiation of Refunds
  • 22
    Apr 2024
    Transfer of Shares to Demat Account
  • 23
    Apr 2024
    Listing Date

Objects of the Offer

  • Setting up of a corn de-oiling manufacturing facility.

  • Addition of `Blended Oil` as an additional product category.

  • Enhance its brand recall to increase its market share.

  • Increasing operational efficiency.

  • Entering new product categories like cleaning products.

Products & Services

  • Ramdevbaba Solvent Limited is in the business of manufacturing, distribution, marketing and selling of Physically Refined Rice Bran Oil.

Strengths

  • The Company`s manufacturing facilities are situated near Nagpur, Maharashtra giving it the strategic advantage to supply and distribute Rice Bran Oil in Maharashtra and DORB across various states in India.

  • The ease of availability of rice bran in abundance, which is its main raw material, ensures the smooth operations of its Manufacturing Facilities, and production and sale of its finished products.

  • The Company has integrated operations involving the extraction of oil from bran and refining of the extracted oil enabling it to meet the time, cost efficiency, quality and quantity requirements.

  • The Company has arrangements with other FMCG companies for supply of rice bran oil.

  • The Company has over the years focused immensely on stringent quality control for its products.

Risks

  • Its inability to comply with repayment and other covenants in the financing agreements or otherwise meet its debt servicing obligations could adversely affect the company`s business, financial condition, cash flows and credit rating.

  • Its business is dependent the demand of the company products in Maharashtra, Andhra Pradesh and Uttar Pradesh.

  • The company is dependent upon certain suppliers for the supply of raw materials required for manufacturing its products and majority of them are from the states of Maharashtra, Madhya Pradesh, Chhattisgarh and Gujarat. In the event of shortage of raw materials with these suppliers or if the company is unable to procure raw materials from alternative sources and in timely manner, its may be unable to meet production schedules for the company products and may not be able to deliver its products to customers, which may adversely affect the company customer relations and reputation.

  • The company derives significant portion of its revenues from Rice Bran Oil and any reduction in demand or in the production of such products could have an adverse effect on its business, results of operations and financial condition.

  • Its business is dependent on the sale of the company products to certain FMCG companies with whom the Company has not entered into any long-term agreements purchasing its Rice Bran Oil. The loss of such customers, a significant reduction in purchases by such customers, or a lack of commercial success of their product of which the company is a major supplier could materially adversely affect its business, results of operations and financial condition.

Company Promoters

Promoters Holding

Issue For IPO
65.42%
Pre Holding

65.42%

Post Holding

-

Top Promoters Holding

Financials

All values in Cr

Mar-2022 Mar-2023 Mar-2023 3-Yr trend
Revenue 582.88 (37.50%) 697.75 (19.70%) 31.46 (-)
Gross Profit 582.88 (37.50%) 697.75 (19.70%) 31.46 (-)
Net Income 582.88 (37.50%) 697.75 (19.70%) 31.46 (-)
Assets 582.88 (37.50%) 697.75 (19.70%) 31.46 (-)
Liabilities 582.88 (37.50%) 697.75 (19.70%) 31.46 (-)

Peers

Company Name Revenue (Cr) Net Profit (Cr) Assets (Cr) Liabilities (Cr) ROE EPS BVPS Current Ratio Debt to Assets
Ramdevbaba Solvent Ltd 697.75 13.00 147.47 99.63 31.46 283.42 1,042.72 2.29 0.67
BCL Industries Ltd 1,818.33 66.29 1,095.52 1,095.52 13.80 27.45 202.84 6.05 0.91
Gokul Refoils and Solvent Ltd 3,136.57 24.14 843.90 843.90 7.35 2.44 33.15 2.86 1.28
Gujarat Ambuja Exports Ltd 4,908.99 330.10 2,951.60 2,951.60 13.56 14.40 106.15 11.18 0.09
Kriti Nutrients Ltd 796.87 20.80 193.08 193.08 15.71 4.15 26.42 10.77 0.29
Shri Venkatesh Refineries Ltd 629.12 14.34 168.17 168.17 27.30 12.96 47.47 8.52 1.47

Book Running Managers

  • Choice Capital Advisors Pvt Ltd

Registrar & Transfer Agent

Bigshare Services Pvt Ltd

Office No 56-2,
Pinnacle Busine.Park,
Mahakali Caves Road - Mumbai - 400093
Phone : 91-22-62638200 Fax: 91-22-63638299

Company Contact Information

Bhaiya Building Anaj Bazar,
Itwati,
Nagpur - 440002
Phone : 0712 7968 189 Email : cs@rbsl.co.in www.ramdevbabasol.com

Offer Related Information

Public issue of to 59,13,600* equity shares of face value Rs. 10 each ("Equity Shares") of Ramdevbaba Solvent Limited ("The Company" or the "Issuer") for cash at a price of Rs. 85 per equity share (including a securities premium of Rs. 75 per equity share) ("Issue Price"), aggregating to Rs. 50.27 crores (the "Issue"). 3,13,600 equity shares aggregating to Rs. 2.67 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker... More

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