Ratnaveer Precision Engineering shares range-bound after listing: Should you hold or exit?

Shares of Ratnaveer Precision Engineering saw some low level buying after a strong debut at Dalal Street on Monday. The stock dropped amid profit booking but found some buyers at lower levels. However, the stock, which had a 'T+3' listing, remained in a tight range during the session.

Shares of Ratnaveer Precision Engineering made a strong debut at Dalal Street today as the ferrous products player was listed at Rs 128 on BSE, a premium of 31 per cent over its issue price of Rs 98. The stock was listed a premium of 26 per cent at Rs 123.20 on NSE.

Shares of Ratnaveer Precision Engineering dropped about 4 per cent to Rs 123 after listing. However, the stock rose more than 9 per cent from those levels to Rs 134.40 on its maiden trading session, extending the overall gains at 37 per cent over its given issue price of Rs 98.

The see-saw movement in the stock has left investors baffled if they should hold the stock or book profit in the company. Analysts have a mixed view on the stock. A few suggest investors book the profits after a strong listing pop, while others suggest to hold the stock for more upside in the counter.

Ratnaveer Precision Engineering Limited made its stock market debut today. The company's strong fundamentals and good subscription levels are positive factors for this. Investors who participated in the IPO can consider booking profits, and those who want to hold may keep a stop-loss at around Rs 116, said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.

The issue of Ratnaveer Engineering Precision was open for bidding between September 4-6. The company raised more than Rs 165 crore from its primary offering, which included a sale of fresh equity shares worth Rs 135.24 crore and an offer for sale (OFS) of 30.4 lakh equity shares worth Rs 29.79 crore.

The company had offered its shares in the fixed price band of Rs 94-99 apiece, and the investors could make bids for a minimum of 130 equity shares and its multiples thereof. The IPO of Ratnaveer Precision Engineering was overall subscribed a stellar 93.99 times.

Ratnaveer Precision opened with strong gains. We expect further gains from hereon due to its diverse product portfolio, large headroom for growth in end-user industries and industry tailwinds in the Indian stainless-steel sector, said Anushi Vakharia, Research Analyst at StoxBox "We advise investors who have received allotment to hold their shares for medium term," she said.

Ratnaveer Precision Engineering, which was incorporated in 2002, manufactures stainless steel finished sheets, washers, solar roofing hooks, pipes, and tubes. Ratnaveer Precision Engineering has four manufacturing units located at Vadodara and Ahmedabad, Gujarat.


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