About the Company:
Ramdevbaba Solvent Ltd is in the business of manufacturing, distribution, marketing and selling of Physically Refined Rice Bran Oil.
Company manufactures and sell Rice Bran Oil to FMCG companies like Mother Dairy Fruit & Vegetable Pvt Ltd, Marico Ltd and Empire Spices and Foods Ltd.
Company also manufactures, markets and sells Rice Bran Oil underown brands Tulsi and Sehat.
Company distributes through thirty-eight (38) distributors who in turn sell to various retailers across Maharashtra.
De-oiled Rice Bran Business:
Company also produces De-oiled Rice Bran (DORB), which is a by-product in the extraction of Rice Bran Oil and sell the same as cattle feed, poultry feed 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, gums, spent earth and wax are sold in the open market.
Company’s Manufacturing Facilities:
Company owns and operates two (2) Manufacturing Facilities, one (1) in Mahadula and one (1) in Bramhapuri near Nagpur, in the State of Maharashtra, which are strategically located in Central India. Company’s Manufacturing Facilities have extraction and refining divisions which enables integrated production and processing of Rice Bran Oil.
Company’s Manufacturing Facilities comprise of three (3) solvent extraction facilities and two (2) oil refinery facilities with an aggregate installed capacity of around 2,55,000 MTPA and 48,000* MTPA respectively operate three units, one (1) in Mahadula and one (1) in Bramhapuri near Nagpur, in the State of Maharashtra, which is strategically located in Central India.
Capacity and Capacity Utilization:
Company’s Product Wise Revenues: (in Lakhs)
Arrangements with FMCG companies for supply of Rice Bran Oil.
Company has entered into arrangements with FMCG companies like Mother Dairy Fruit & Vegetable Pvt Ltd, Marico Limited and Empire Spices and Foods Ltd for supply of Rice Bran Oil.
Company manufactures, distributes, markets and sells rice bran oil under our own brands like ―Tulsi and ―Sehat.
As a part of company’s arrangement with these FMCG companies, we manufacture the Rice Bran Oil as per their quality and packaging requirements and distribute them to their assigned distributors in Central and Southern India.
Sale to FMCG companies amounted to Rs.218.16 crores contributing 31.27%, of company’s revenue from operations during Fiscals 2023.
Setting up of a Corn de-oiling Manufacturing facility.
Company intends to set up corn de-oiling manufacturing facility, adjoining our exisiting manufacturing unit at Brahmapuri, which involves crushing and processing of grains like corn using a process called dry-milling.
The de-oiled corn cake obtained from this process along with de-oiled rice bran (DORB) from our exisiting manufacturing facilities will be supplied to RBS Renewables Pvt Ltd, an Associate company, which is setting-up Ethanol manufacturing unit adjoining to our existing Brahmapuri unit.
Company has a thirty percent (30%) stake in this Associate company.
Entering New Product Categories like Cleaning Products.
Company markets and sells Rice Bran Oil under own brands ―Tulsi and ―Sehat.
To promote and increase company’s sales and market share, company can offer bundled products to customers at a competitive price which will enhance the sales of Rice Bran Oil under our brands ―Tulsi and ―Sehat.
To achieve this objective, company is in the process of setting up a separate subsidiary for manufacturing of cleaning products such as soaps and detergents. We plan to enter into arrangements with this entity for the supply of soaps/detergents that could be bundled and sold along with our Rice Bran Oil brands viz. ―Tulsi and ―Sehat.
Management Team:
- Mr. Prashant Kisanlal Bhaiya (Designation: Chairman and Whole-time Director)
- Mr. Nilesh Suresh Mohata (Designation: Managing Director)
Objectives of the Issue:
Fresh Issue: (Rs. 50.26 cr)
- Setting up of new manufacturing facility.
- Repayment in full or in part, of certain of our outstanding borrowings.
- Funding the working capital requirements of our Company.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Setting up of new manufacturing facility | 18.81 cr |
| Repayment in full or in part, of certain of our outstanding borrowings | 9.32 cr |
| Funding the working capital requirements of our Company | 12.00 cr |
Setting up of New Manufacturing facility.
As a part of growth strategy, company intends to establish a new manufacturing facility of corn extraction having a capacity of 300 tons per day, which will increase the present capacity and subsequently boost sales and profitability.
The proposed project will be set up on the land owned by the Company. Company has purchased a land parcel adjacent to existing plant at Bramhapuri, near Nagpur, Maharashtra, for the setting-up of new manufacturing facility.
Project Implementation Schedule:
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th June 23 |
|---|---|---|---|---|
| Revenue | 427.17 | 585.25 | 704.33 | 168.38 |
| Net Profit | 6.17 | 6.59 | 13.00 | 3.57 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Ramdev Baba Solvent Ltd | 10 | 9.45 | 8.99 | 31.46% | 34.76 |
| BCL Industries Ltd | 1 | 2.66 | 26.03 | 15.19% | 19.90 |
| Gokul Refoils and Solvent Ltd | 2 | 2.44 | 18.11 | 7.64% | 33.15 |
| Gujarat Ambuja Exports Ltd | 1 | 14.40 | 27.29 | 14.50% | 106.15 |
| Kriti Nutrients Limited | 1 | 4.15 | 21.53 | 11.70% | 26.42 |
| Shri Venkatesh Refineries Ltd | 10 | 12.96 | 8.49 | 24.09% | 59.79 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 15th April 2024 |
| Issue Closes on | 18th April 2024 |
| Issue Price | Rs.80 – 85 |
| Face Value | Rs.10 |
| Minimum Lot | 1600 shares |
| Minimum Investment | Rs.1,36,000 |
| Issue Constitutes | 26.72% |
| Issue Size | Rs.50.26 cr |
| Market Cap | Rs.188 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 59,13,600 (Rs.50.26 cr) |
| Equity Shares Prior to the Issue | 1,62,11,750 |
| Equity Shares after the Issue | 2,21,25,350 |
Important Dates:
| Finalization of Basis of Allotment | On or Before 19th April 2024 |
| Initiation of Refunds | On or Before 22nd April 2024 |
| Credit of Equity Shares: | On or Before 22nd April 2024 |
| Listing Date: | On or Before 23rd April 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 9.45 | 8.99 | 31.46% | 34.67 | 2.07 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? |
|---|
| Ramdevbaba Solvent Ltd, a prominent player in the realm of manufacturing, distributing, and marketing Physically Refined Rice Bran Oil, is poised to launch its SME IPO.
With a core focus on producing and supplying high-quality Rice Bran Oil, the company has established significant partnerships with FMCG giants such as Mother Dairy Fruit & Vegetable Pvt Ltd, Marico Ltd, and Empire Spices and Foods Ltd. The forthcoming IPO intends to fund the establishment of a new manufacturing facility, a strategic move that underscores the company’s commitment to expanding its production capacity and meeting growing market demands. We are optimistic about Ramdevbaba Solvent Ltd’s IPO, suggesting a favorable outlook for potential investors. |
| Company Contact Info: |
|---|
| Ramdevbaba Solvent Ltd Bhaiya Building, Anaj Bazar, Itwari, Nagpur 440 002, Maharashtra, India. Telephone: +91 0712-7968189 E-mail: investor.relation@rbsl.co.in Website: www.ramdevbabasol.com |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Office No. S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra, India. Telephone: +91 22 6263 8200 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| CHOICE CAPITAL ADVISORS PRIVATE LIMITED Sunil Patodia Tower, Plot No. 156-158, J.B. Nagar, Andheri (East), Mumbai, 400 099, Maharashtra, India. Tel: +91 22 6707 9999 / 7919 E-mail: rbsl.ipo@choiceindia.com Website: www.choiceindia.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
