Ratnaveer Precision Engineering Ltd

Management changes

• Appointment: Seema Sanghavi as Whole Time Director for 5 years (20 Aug 2026–19 Aug 2031).
• Remuneration to be fixed subject to AGM approval.
• Relationship: Seema Sanghavi is wife of Vijay Sanghavi.
• Profile: long-time associate; Chief Sales Co-ordinator; sales/marketing expertise.
• Appointment: Bhadresh K Mehta & Co appointed Internal Auditor for FY 2026-27.
• Profile: CA firm; expertise in financial accounting, banking, business planning, legal compliance.
• Appointment: Ashish Bhavsar & Associates appointed Cost Auditor for FY 2026-27.
• Profile: Ahmedabad-based CA firm; diverse services with a young professional team.
• Appointment: Pankaj R Shah & Associates appointed Statutory Auditor for second 5-year term, subject to AGM.
• Profile: Founded 1977; 5 partners, 20 CAs, 100+ professionals.

Rights issue record date

• Record date fixed at 26 August 2026 to determine eligibility for 7 Rights Shares per 40 equity shares.

Rights issue details

• Approved issue of 1,24,99,669 equity shares at Rs 264 per share for cash, aggregating Rs 3,29,99,12,616.
• Record date fixed at 26 August 2026 for eligibility.
• Post-issue outstanding shares would be 8,39,26,350 on full subscription.
• Rights entitlement: 7 new shares for every 40 existing shares.
• ISIN for rights entitlement: INE05CZ20011.
• Terms of payment: Rs 264 per share payable on application.

Ratnaveer Precision Engineering Limited: Trading window closed from 18 August 2026 until 48 hours after the meeting on 20 August 2026

Meeting Details

• Date: 20 August 2026; time and venue not disclosed.

Key Agenda Items

• Fix brief term of Rights Issue: equity shares, issue price, entitlement ratio, and payment terms.
• Fix Record Date to determine shareholders eligible for Rights Issue.
• Any other agenda with the chairman's permission.

Other Notes

Issue Overview

• Type of issue: QIP; securities: equity shares.
• Total issue size and net proceeds reported; no revision or undersubscription.
• Main objectives: funding working capital and general corporate purposes.

Utilisation of Proceeds

• Utilisation largely as disclosed; no new allocations in the quarter.
• Funding working capital: end-quarter utilised 323.40; unutilised 1,176.60.
• Delay due to QIP funds received in Monitoring Account in December 2025; deployment planned for later.
• General corporate purposes: no quarterly utilisation; unutilised 323.11.
• Issue expenses: utilised 31.60; unutilised 0.29.
• Unutilised proceeds parked in fixed deposits; majority encumbered against overdraft except one deposit.
• Total unutilised funds: 1,499.71 million; net proceeds and 0.29 million issue expenses.
• Fixed deposits mature across 2026–2027; deposits will be released from lien in upcoming quarters.
• Market value of fixed deposits at quarter end: 1,556.25.

Governance and Compliance

• No material deviations from offer document reported.
• Delay in deployment due to late QIP fund receipt; no other governance concerns noted.

General Corporate Purpose (GCP)

• Not applicable; no GCP utilization reported.

Issue Overview

• Type and security: Preferential issue; warrants convertible to equity.
• Total size disclosed; net proceeds not disclosed; no revision.
• Main objectives: working capital and general corporate purposes.
• Note: some proceeds still expected from warrant holders.

Utilisation of Proceeds

• Utilisation status: as disclosed, no material deviation from offer document.
• Object-wise status: working capital partly utilized; general corporate purposes partly utilized; remaining unutilised.
• Unutilised funds: held partly in fixed deposits and in monitoring accounts.
• Means of finance unchanged; no major deviations observed.
• Warrants remain exercisable within the specified period.
• Funds were co-mingled with internal funds; end-use verified via certificates.
• GCP utilisation: part allocated to debt repayment; board approval for allocation not stated.

Governance and Compliance

• Approvals: no pending statutory or shareholder approvals indicated.
• Material events: warrants and conversion terms noted; no material adverse events reported.
• Information basis: monitoring relies on issuer-provided certifications with no independent verification.

GCP

• GCP items include debt repayment; total used as stated.
• Board approvals for GCP allocations not explicitly stated.

Resolution details

• Purpose: postal ballot on appointing Kashyap Ashwinbhai Shah as independent director for five years.
• Resolution type: Special resolution.
• Outcome: Approved with 99.98% in favour, 0.02% against.

Director appointment details

• Role: Independent director; term: 5 consecutive years.
• Experience/independence: not provided in the filing.

Governance impact

• Adds an independent director to the board; potential governance strengthening.

Financial highlights

• Revenue from operations ₹314.64 crore; +18.9% YoY, +26.4% QoQ.
• EBITDA ₹35.98 crore; EBITDA margin 11.43%.
• PAT ₹18.24 crore; PAT margin 5.80%; PBT ₹21.88 crore.
• EPS (Basic & Diluted) ₹10.36.

Operational progress and strategic initiatives

• CCL project ~60% complete; commercial production due November 2026.
• Key machinery shipments for CCL project expected soon.
• Star Performer – Large Enterprise Award at EEPC India Export Awards.
• Infomerics upgraded ratings; long-term IVR A- (Stable), short-term IVR A2+.
• Rights issue in-principle approvals up to ₹330 crore.
• Gujarat Electronics Policy in-principle approval for ₹472.34 crore CCL project.
• Domestic CCL supply-demand gap supports import substitution growth.

Financing and outlook

• Rights issue to fund expansion and strategic growth.
• Copper Clad Laminate expected to contribute meaningfully in coming years.
• Management remarks indicate strong momentum and import substitution opportunities in domestic CCL market.

Q1 FY27 financials

• Revenue ₹3,146.35 million; YoY growth 18.9%.
• EBITDA ₹359.75 million; margin 11.43%.
• PAT ₹182.37 million; margin 5.80%.

CCL Copper Clad Laminate project progress

• Gujarat Electronics Policy in-principle approval for ₹472.34 crore CCL project.
• ECMS approval received on 30 March 2026 for ₹338 crore CCL project.
• Line 1 machinery ordered; shipment and installation underway; commissioning targeted November 2026.
• Phase 1 investment ₹338 crore; ~60% completion; five lines planned in phases.

Financing and regulatory approvals

• NSE & BSE in-principle approvals for Rights Issue up to ₹330 crore.
• Infomerics upgrades long-term rating to IVR A- (Stable) and short-term to IVR A2+; facilities ₹388.47 crore.

Governance update

• Vijay R. Sanghavi remains MD and CFO; Seema Vijay Sanghavi joins Board as Executive Director.