Ratnaveer Precision Engineering Limited (RATNAVEER) — Corporate Action

Ratnaveer Precision Engineering Limited announced a rights issue seeking in-principle approval for up to Rs. 330 crores of equity shares at a face value of Re. 10 each, with processing fees of Rs. 8.91 lakhs paid. The issue requires 90% minimum subscription and will refund applicants within 4 days if not met, with 15% annual interest on delays. Net proceeds of approximately Rs. 255 crores will fund working capital, with up to 25% allocated to general corporate purposes. The company, led by promoter Vijay Sanghavi (45.48% holding), plans fund deployment over FY2026-27 and FY2027-28. Key risks include supply chain dependencies, customer concentration, and litigation exposure totaling Rs. 216.07 crores. The rights issue is subject to SEBI regulations, RBI compliance, and jurisdictional restrictions, particularly prohibiting offers in the US without registration. Shareholders will receive Rights Entitlements credited to demat accounts, with renunciation options available. The filing confirms no dividends declared in the past three years and highlights robust financial metrics, including 12.39% ROE in FY26 and improving EBITDA margins. The company operates four manufacturing facilities in Gujarat, with 263 permanent and 220 contract workers, and maintains ISO certifications. It faces intense competition, raw material cost volatility, and regulatory risks from new Labour Codes. The rights issue price and exact share ratio remain unspecified in the document.