Rappid Valves (India) has opened its SME IPO for subscription starting September 23, which will run until September 25. The company aims to raise ₹30.41 crore, with shares priced between ₹210 and ₹222 each.
Subscription Status
As of 11:17 am on the first day of bidding, the IPO has been subscribed 0.67 times, with bids for 6.09 lakh shares against 9.10 lakh shares available. The retail segment was fully subscribed in just over an hour, with a subscription rate of 1.17 times. Non-institutional investors (NIIs) have bid 0.38 times, while qualified institutional buyers (QIBs) had not placed any bids yet.
About the IPO
The Rappid Valves IPO consists of a fresh issue of 13.7 lakh shares, with no offer-for-sale component. The funds raised will be used for various purposes, including buying new equipment, renovating the office and manufacturing unit, repaying loans, and supporting growth through acquisitions.
Retail investors need to apply for a minimum of 600 shares, costing ₹1,33,600, while high net-worth individuals (HNIs) must apply for at least two lots, totaling ₹2,66,400.
The allotment for the IPO is expected to be finalized on September 26, 2024. Refunds for unallotted shares and the credit of shares to successful applicants will occur on September 27, and shares will list on the NSE SME platform on September 30.
Shreni Shares Limited is the lead manager for the IPO, while Link Intime India Private Ltd serves as the registrar, and Rikhav Securities is the market maker.
About the Company
Founded in 2002, Rappid Valves specializes in producing various types of valves, including ball, gate, and butterfly valves, made from ferrous and non-ferrous materials. The company has a well-equipped manufacturing facility with advanced machinery, ensuring efficient production. Financially, Rappid Valves has shown significant growth, with revenue up 123% and profit after tax increasing by 807% from FY23 to FY24.
Review
Dilip Davda from Chittorgarh.com noted that while the company has shown impressive profits, there are concerns about sustainability in a competitive market. He gave the IPO a ‘may apply’ rating, suggesting that investors should consider moderate investments for the long term.
GMP Status
The grey market premium (GMP) for the IPO today is ₹0 per share, indicating an expected listing price of ₹222, matching its issue price. The GMP has remained steady since September 16.
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