Ramdevbaba Solvent Limited operates in the production, distribution, marketing, and sales of Physically Refined Rice Bran Oil, known as Rice Bran Oil. This company supplies the oil to large FMCG enterprises including Mother Dairy Fruit & Vegetable Private Limited, Marico Limited, and Empire Spices and Foods Ltd.
Additionally, it markets and retails Rice Bran Oil under its brand names "Tulsi" and "Sehat" via thirty-eight distributors. These distributors then sell to retailers throughout Maharashtra. Rice Bran Oil is extracted from the hard outer brown layer of rice known as bran.
Noted for its high smoke point of 232°C and mild taste, it is suitable for high-temperature cooking methods such as stir-frying and deep-frying. The oil has a balanced content of Polyunsaturated Fats (PUFA) and Monounsaturated Fats (MUFA), typically in a near-equal ratio, and is a good source of Vitamin E, an antioxidant.
The company also produces De-oiled Rice Bran (DORB), a by-product from Rice Bran Oil extraction. This by-product is marketed as cattle, poultry, and fish feed in several Indian states including Maharashtra, Goa, Gujarat, Madhya Pradesh, Andhra Pradesh, Telangana, Karnataka, Kerala, and Tamil Nadu. Other by-products like fatty acids, lecithin, gums, spent earth, and wax are sold on the open market.
Industry Outlook
- The Indian food processing market is expected to expand significantly, reaching US$ 547.3 trillion by 2028 with a robust annual growth rate of 9.5% from 2023-2028.
- Oilseed production in India for 2021-22 was approximately 376.97 lakh metric tons, with edible oil production estimated at 115.71 lakh metric tons from primary and secondary sources.
Ramdevbaba Solvent Ltd IPO Details
Ramdevbaba Solvent Ltd IPO Dates
Ramdevbaba Solvent IPO is open from April 15, 2024, to April 18, 2024. The IPO will be listed on NSE Emerge.
Ramdevbaba Solvent Ltd IPO Price Band
Ramdevbaba Solvent is a book-built issue. The price band is set at ₹80 to ₹85 per share.
Ramdevbaba Solvent Ltd IPO Lot Size
The lot size for Ramdevbaba Solvent Limited’s IPO is 1,600 shares with a minimum investment of ₹1,36,000.
Ramdevbaba Solvent Ltd IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Establish a new manufacturing facility in Chandrapur, Maharashtra with an investment of ₹1,881.40 lakh to expand operations.
- Repay existing debts partially or fully, allocating ₹841.96 lakh to improve financial health.
- Allocate ₹1,200.00 lakh to enhance the working capital, supporting day-to-day operational needs.
- Reserve funds for general corporate purposes.
Peer Details
The following are the listed peers of Ramdevbaba Solvent:
- BCL Industries Ltd
- Gokul Refoils & Solvent Ltd
- Gujarat Ambuja Exports Ltd
- Kriti Nutrients Ltd
- Shri Venkatesh Refineries Ltd
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Contact Details of Ramdevbaba Solvent Ltd
Registered office: Bhaiya Building, Anaj Bazar, Itwari, Nagpur 440 002, Maharashtra, India
Phone: +91 0712-7968 189
E-mail: cs@rbsl.co.in
IPO Financials
| Particulars | 9-Month period Ending on December 31, 2023 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Revenue from Operations (in ₹ lakh) | 46,359.01 | 69,775.26 | 58,287.73 |
| Profit After Tax (PAT) (in ₹ lakh) | 828.90 | 1300.15 | 659.15 |
| Cash & Cash Equivalents (in ₹ lakh) | 22.41 | 35.64 | 20.08 |
| Net Worth (in ₹ lakh) | 6,857.15 | 4,783.25 | 3,483.10 |
| Debt to Equity Ratio(x) | 1.46 | 2.07 | 1.86 |
| Return on Equity (%) | 1.79% | 1.86% | 1.13% |
| Return on Net Worth (RoCE) (%) | 14.24% | 31.46% | 20.90% |
| Earning Per Share (EPS)-in absolute ₹ | 5.60 | 9.45 | 4.79 |
Know before investing
Strengths
3Strategic location near Nagpur, Maharashtra, facilitates the distribution of Rice Bran Oil and DORB across central and southern India, enhancing supply chain efficiency and market reach.
Proximity to rice mills in Vidarbha, a major rice-producing area, ensures a steady and cost-effective supply of rice bran, optimizing production costs and improving competitive pricing.
Integrated operations with seamless production processes at the facility enable economies of scale, improving time and cost efficiency, quality control, and ultimately boosting profit margins.
Risks
3Non-compliance with loan covenants and debt servicing obligations could harm Ramdevbaba Solvent Limited's business, destabilizing financials and lowering credit ratings, with secured borrowings at ₹8,621.12 lakhs.
Product demand vulnerability in Maharashtra, Andhra Pradesh, and Uttar Pradesh, with over 50% revenue dependency, could be adversely impacted by external economic and competitive pressures.
Dependence on specific suppliers in Maharashtra, Madhya Pradesh, Chhattisgarh, and Gujarat for raw materials poses risks of supply disruptions, potentially hindering production and affecting customer relations.
