Ramdevbaba Solvent shares debut with 32% premium on NSE SME platform

The IPO, which was entirely a fresh equity issue of 59.13 lakh shares, received robust response from investors with an overall subscription of over 100 times.

The net proceeds from the public offer will be used for setting up a new manufacturing facility, repayment of debt, funding working capital requirements and other general corporate purposes.

Ramdevbaba Solvent is in the business of manufacturing, distribution, marketing and selling of physically refined rice bran oil. It manufactures and sells rice bran oil to FMCG companies like Mother Dairy Fruit and Vegetable Private, and Empire Spices and Foods.

The company also makes, markets and sells rice bran oil under its own brands "Tulsi" and "Sehat" through 38 distributors who in turn sell to various retailers across Maharashtra.

Rice bran oil is the oil extracted from the hard outer brown layer of rice called ‘bran’. It is well known for its high smoke point of 232C and mild flavour, making it fit for high-temperature cooking methods such as stir-frying and deep-frying. It has an ideal balance of Polyunsaturated Fats (PUFA) and Monounsaturated Fats (MUFA), in almost a 1:1 ratio.

The company also produces De-oiled Rice Bran (DORB), which is a by-product in the extraction of Rice Bran Oil and sells the same as cattle feed, poultry feed and fish feed in states across India.

For the period ended December 2023, the company clocked revenues of Rs 463 crore and net profit of Rs 8.3 crore.

Choice Capital Advisors acted as the lead manager to the issue and Bigshare Services was the registrar.