Ratnaveer Precision Engineering Limited successfully closed its ₹329.99 crore rights issue, achieving an oversubscription rate of 1.11 times. This strong participation from eligible shareholders and Rights Entitlement holders underscores confidence in the company's strategic direction. The issue involved 12,499,669 fully paid-up equity shares, priced at ₹264 each, offered in a ratio of 7 rights shares for every 40 shares held on the August 26, 2026, record date.
The basis of allotment is set to be finalized on September 10, 2026, with shares expected to be credited to demat accounts and listed on the NSE and BSE by September 15, 2026. MUFG Intime India Private Limited served as the Registrar to the Issue.
A significant portion of the capital raised will fuel Ratnaveer's ambitious Copper Clad Laminate (CCL) project in Vadodara. This venture positions the company at the nexus of India's drive for electronics import substitution and a global surge in CCL prices, with management projecting substantial growth and profitability by FY28.
The Strategic Opportunity in CCL
Copper Clad Laminate is a crucial, high-value component in the manufacturing of Printed Circuit Boards (PCBs). India currently relies heavily on imports to meet its demand. Ratnaveer's entry into domestic CCL production, supported by government initiatives like the ECMS scheme, aims to provide a reliable local supply, thereby reducing import dependency for Indian PCB manufacturers.
The timing for this expansion is particularly opportune. Over the past year, global CCL prices have soared by an estimated 325%, driven by tight supplies of glass-fabric, copper-foil, and resin. In contrast, raw material costs have seen a more modest increase of approximately 30-35% during the same period. This widening margin between selling prices and input costs presents a significant opportunity for new entrants like Ratnaveer, especially as global capacity remains constrained and demand from sectors such as AI infrastructure and electronics manufacturing continues to climb.
Financial Outlook and Growth Projections
Management has outlined clear financial guidance extending to FY28. The established stainless steel business is forecast to generate around ₹750 crore in revenue, with an estimated EBITDA margin of 13% and a PAT margin of 7%. Crucially, the standalone CCL business is projected to achieve approximately ₹350 crore in revenue, but with a significantly richer margin profile: an EBITDA margin of 20% and a PAT margin of 13%.
On a consolidated basis, Ratnaveer aims for a revenue of approximately ₹2,100 crore by FY28, with a blended EBITDA margin of about 13.5% and a PAT margin of around 10.5%. These figures highlight that the CCL segment is expected to deliver nearly double the PAT margin of the legacy stainless steel business, indicating its potential to elevate overall company profitability as its share of the revenue mix expands.
Long-Term Vision
Ratnaveer's ambitions extend beyond FY28, targeting a consolidated revenue of ₹2,500 crore by FY29. The company's longer-term objective is to reach a ₹5,000 crore topline within the next five years, signaling the CCL business as an increasingly vital pillar of its future growth strategy, rather than a mere diversification.
This strategic move into a structurally undersupplied, import-dependent market, coupled with favorable pricing dynamics and a higher-margin product, positions Ratnaveer Precision Engineering for a potentially significant re-rating of its growth trajectory and profitability in the coming years, provided execution aligns with current guidance.