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25 April 2024

Ramdevbaba Solvent Limited IPO

Ramdevbaba Solvent Ltd. (RSL) is a manufacturing company of Physically Refined Rice Bran Oil ("Rice Bran Oil"). It manufactured and sells Rice Bran Oil to FMCG companies like Mother Dairy Fruit & Vegetable Private Limited, Marico Limited and Empire Spices and Foods Ltd. The company also manufactures, markets and sells Rice Bran Oil under its own brands "Tulsi" and "Sehat" through thirty-eight (38) distributors who in turn sell to various retailers across Maharashtra. Ramdevbaba Solvent IPO is a book built issue of Rs 50.27 crores. The issue is entirely a fresh issue of 59.14 lakh shares.Ramdevbaba Solvent IPO price band is set at ₹80 to ₹85 per share. The minimum lot size for an application is 1600 Shares.Choice Capital Advisors Pvt Ltd is the book running lead manager of the Ramdevbaba Solvent IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for Ramdevbaba Solvent IPO is Choice Equity Broking.

Ramdevbaba Solvent Limited IPO Overview

Detail	Description
IPO Date	April 15, 2024 to April 18, 2024
Listing Date	April 23, 2024
Face Value	₹10 per share
Price	₹80 to ₹85 per share
Lot Size	1600 Shares
Total Issue Size	5,913,600 shares (aggregating up to ₹50.27 Cr)
Fresh Issue	5,913,600 shares (aggregating up to ₹50.27 Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE SME
Share holding pre issue	16,211,750
Share holding post issue	22,125,350
Market Maker portion	313,600 shares Choice Equity Broking

Ramdevbaba Solvent Limited IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Monday, April 15, 2024
IPO Close Date	Thursday, April 18, 2024
Basis of Allotment	Friday, April 19, 2024
Initiation of Refunds	Monday, April 22, 2024
Credit of Shares to Demat	Monday, April 22, 2024
Listing Date	Tuesday, April 23, 2024
Cut-off time for UPI mandate confirmation	5 PM on April 18, 2024

Ramdevbaba Solvent Limited IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	1600	₹136,000
Retail (Max)	1	1600	₹136,000
HNI (Min)	2	3,200	₹272,000

Ramdevbaba Solvent Limited IPO Reservation

Investor Category	Shares Offered
Anchor Investor Shares Offered	1,680,000 (28.41%)
Market Maker Shares Offered	313,600 (5.30%)
QIB Shares Offered	1,120,000 (18.94%)
NII (HNI) Shares Offered	840,000 (14.20%)
Retail Shares Offered	1,960,000 (33.14%)
Total Shares Offered	5,913,600 (100%)

Ramdevbaba Solvent Limited IPO Promoter Holding

Shareholding Pre Issue	81.01%
Shareholding Post Issue

Ramdevbaba Solvent Limited IPO Anchor Investors Details

Bid Date	April 12, 2024
Shares Offered	1,680,000
Anchor Portion Size (In Cr.)	14.28
Anchor lock-in period end date for 50% shares (30 Days)	May 19, 2024
Anchor lock-in period end date for remaining shares (90 Days)	July 18, 2024

Company & Financials

The company was incorporated in 2008, Ramdevbaba Solvent Limited produces and distributes physically refined rice bran oil.The Company is involved in the manufacture, distribution, marketing and sale of rice bran oil to FMCG companies such as Mother Dairy Fruit & Vegetable Private Limited, Marico Limited and Empire Spices and Foods Ltd. The Company also manufactures, markets and sells rice bran oil under its own brands "Tulsi" and "Sehat" through thirty eight (38) distributors who in turn sell to various retailers in Maharashtra.The company also manufactures de-oiled rice bran (DORB), which is a by-product of rice bran oil extraction, and sells it as livestock, poultry and fish feed in the states of Maharashtra, Goa, Gujarat, Madhya Pradesh, Andhra Pradesh, Telangana, Karnataka, Kerala and Tamil Nadu. Other by-products such as fatty acid, lecithin, gum, spent soil and wax are sold on the open market.Ramdevbaba Solvent has two production facilities, one in Mahadula and the other in Bramhapuri near Nagpur in the state of Maharashtra.

Ramdevbaba Solvent Limited Financial Information

Period Ended	31 Dec 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	20,341.24	19,062.61	13,134.86	10,125.05
Revenue	46,569.81	70,433.41	58,525.46	42,717.32
Profit After Tax	828.90	1,300.15	659.15	617.06
Net Worth	6,857.15	4,783.25	3,483.10	2,823.95
Reserves and Surplus	5,235.97	4,324.52	3,024.37	2,365.22
Total Borrowing	9,998.78	9,922.63	6,485.67	4,474.16
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
ROCE	10.76%
Debt/Equity	1.46
RoNW	14.24%
P/BV	1.83
PAT Margin (%)	1.79

	Pre IPO	Post IPO
EPS (Rs)	8.02	5
P/E (x)	10.6	17.02

Objectives of Ramdevbaba Solvent Limited IPO

Objectives of the issue are as follows:-

1. Setting up of new manufacturing facility.
2. Repayment in full or in part, of certain outstanding borrowing.
3. Funding the working capital requirements of the company.
4. General corporate purposes.

Ramdevbaba Solvent Limited IPO review

The company is having a niche place in central India for Rice Bran Oil supply and has been posting average performance in line with the industry trends. It is now adding de-oiling facility and venturing into ethanol blending that has bright prospects ahead. Based on its FY23/FY24 earnings, the issue appears fully priced. Well informed investors may park funds for the medium to long term rewards.

FAQs for Ramdevbaba Solvent Limited IPO

Why Ramdevbaba Solvent Limited IPO?

The initial public offer (IPO) of Ramdevbaba Solvent Limited offers an early investment opportunity in Ramdevbaba Solvent Limited. A stock market investor can buy Ramdevbaba Solvent IPO shares by applying in IPO before Ramdevbaba Solvent Limited shares get listed at the stock exchanges. An investor could invest in Ramdevbaba Solvent IPO for short term listing gain or a long term.
2. Ramdevbaba Solvent IPO what should investors do?

Ramdevbaba Solvent IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges.
Is Ramdevbaba Solvent IPO good?

Our recommendation for Ramdevbaba Solvent IPO is to subscribe.
When will Ramdevbaba Solvent IPO allotment status?

The Ramdevbaba Solvent IPO allotment status will be available on or around April 19, 2024. The allotted shares will be credited in demat account by April 22, 2024.