Ramdevbaba Solvent Limited (NSE SME)

Apr 15, 2024 - Apr 18, 2024

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Anchor Details

Name of Anchor	No. of Shares	% Portion	Amount (cr)
Minerva Emerging Opportunities Fund	473600	28.19%	4.03
Nakshatra Stressed Asset Fund	240000	14.29%	2.04
Steptrade Revolution Fund	236800	14.10%	2.01
Rajasthan Global Securities Private Limited	236800	14.10%	2.01
Milky Investment & Trading Co	236800	14.10%	2.01
Moneywise Financial Sevices Private Limited	137600	8.19%	1.17
Kingsman Wealth Fund PCC KIF II	118400	7.05%	1.01
Total	1680000	100.00%	14.28

IPO Reservation

Investor Category	Shares Offered	No. of Shares
Retail	33.14%	1960000
NII (HNI)	14.20%	840000
Anchor	28.41%	1680000
QIB	18.94%	1120000
Market Maker	5.30%	313600
Total	100.00%	5913600

Established in 2008, Ramdevbaba Solvent Limited is a key player in the production and distribution of physically refined rice bran oil. With a focus on quality and innovation, the company caters to both FMCG giants like Mother Dairy Fruit & Vegetable Private Limited, Marico Limited, and Empire Spices and Foods Ltd, as well as markets its own brands, "Tulsi" and "Sehat," through an extensive network of thirty-eight (38) distributors across Maharashtra. Alongside rice bran oil, Ramdevbaba Solvent also produces de-oiled rice bran (DORB) and various other by-products, catering to livestock, poultry, fish feed markets, and selling additional by-products like fatty acid, lecithin, gum, spent soil, and wax in the open market. Operating two production facilities located in Mahadula and Bramhapuri near Nagpur, Maharashtra, the company ensures consistent supply and high-quality products, contributing to its prominent position within the edible oil industry.

Key Performance Indicator

Company Financials

Period	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Assets	20,341.24	19,062.61	13,134.86	10,125.05
Revenue	46,569.81	70,433.41	58,525.46	42,717.32
Profit	828.90	1,300.15	659.15	617.06
Net Worth	6,857.15	4,783.25	3,483.10	2,823.95
Reserves	5,235.97	4,324.52	3,024.37	2,365.22
Borrowing	9,998.78	9,922.63	6,485.67	4,474.16
Amount in ₹ Lakhs

Strength Factors

Strategic Location Advantage: The Company’s manufacturing facilities near Nagpur, Maharashtra provide a strategic advantage for supplying and distributing Rice Bran Oil in Maharashtra and DORB (De-Oiled Rice Bran) across various states in India. This proximity to major markets enhances logistical efficiency, reduces transportation costs, and ensures timely delivery to customers. The strategic location strengthens the company's market presence and competitive edge in the region.

Abundant Raw Material Availability: The ease of availability of rice bran in abundance serves as a significant strength for the company. As rice bran is the main raw material for its manufacturing operations, the ready availability ensures uninterrupted production and sale of finished products. This abundant and consistent supply of raw material minimizes operational disruptions, optimizes production capacity utilization, and enhances cost-effectiveness, thereby bolstering the company's competitiveness and profitability.

Integrated Operations and Expertise: The Company’s integrated operations involve the extraction of oil from bran and refining of the extracted oil. This integration streamlines the production process, enabling the company to meet time, cost efficiency, quality, and quantity requirements effectively. By controlling the entire value chain from raw material procurement to finished product delivery, the company can ensure product consistency, quality control, and operational efficiency. Moreover, the expertise gained from managing integrated operations enhances the company's capability to adapt to market dynamics, innovate processes, and maintain competitive advantage in the industry.

Risk Factors

Revenue Dependency on Rice Bran Oil: The company derives a significant portion of its revenues from Rice Bran Oil. Any reduction in demand for this product or disruptions in its production could have adverse effects on the company's business, financial results, and overall financial condition. Factors such as changes in consumer preferences, health trends, or economic conditions could lead to fluctuations in demand for Rice Bran Oil, posing a risk to the company's revenue stability and growth prospects.

Price Volatility of Commodities: The company's products, including Rice Bran Oil, are considered commodities, and their prices are subject to fluctuations. Changes in market conditions, supply and demand dynamics, geopolitical events, or regulatory interventions can lead to significant price volatility, impacting the company's profitability. Fluctuating prices may affect margins, inventory management, and overall financial performance, posing a risk to the company's financial stability and operational efficiency.

Weather-Related Risks: Unfavorable local weather patterns pose a significant risk to the company's business operations and financial condition. Weather-related events such as droughts, floods, or adverse climatic conditions can affect agricultural activities, including the cultivation of rice, which serves as a primary raw material for Rice Bran Oil production. Supply chain disruptions, crop failures, or quality issues resulting from adverse weather conditions may lead to production delays, increased costs, and decreased revenues, thereby impacting the company's profitability and financial resilience.

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