Ravita Engineering Services concluded its IPO with a 6.68 times subscription, driven by institutional interest. The company raised Rs 116.05 crore through a fresh issue to fund machinery and working capital. Shares will debut on the NSE Emerge platform on October 22.
The initial public offering (IPO) of Ravita Engineering Services has closed for bidding with a total subscription of 6.68 times. Investors submitted bids for approximately 4.95 crore equity shares against an offer size of 74.13 lakh shares. The public issue, which aims to raise Rs 116.05 crore through a fresh issue of 1.03 crore shares, saw varying levels of interest across different investor categories.
Qualified Institutional Buyers showed the strongest interest, oversubscribing their portion 13.19 times. This segment is often monitored by investors as it can indicate confidence from larger financial institutions. Meanwhile, Non-Institutional Investors subscribed 7.77 times, and retail investors participated with a subscription rate of 3.5 times.
Ravita Engineering Services specializes in HVAC and industrial cooling, offering solutions such as industrial compressors, central air-conditioning, and post-installation maintenance. The company plans to use Rs 70 crore of the proceeds to support its long-term working capital requirements. An additional Rs 25.5 crore is set aside for the purchase of heavy machinery, which the company intends to use to support expansion into larger electromechanical projects. The remaining funds are allocated for general corporate purposes.
As this is an SME IPO debuting on the NSE Emerge platform, investors should be aware of the inherent risks associated with such listings. These include potentially lower trading liquidity compared to larger, mainboard-listed companies. Additionally, while the unofficial grey market has indicated a modest premium of around 2%, this data is volatile and often does not provide a reliable prediction of the stock's actual performance on the listing day.
Investors who have applied for the IPO should track the share allotment process, which is expected to be finalized by October 19. The company's stock is scheduled to list on the National Stock Exchange (NSE) Emerge platform on October 22. The issuance was managed by Vivro Financial Services, with key backing from promoters Vibhoar Agrawal, Rachita Agrawal, and Starwings Realtors.