Rappid Valves SME IPO opens today: Check subscription status, GMP and other details

Rappid Valves (India) opened its SME IPO for subscription on September 23 and will close on September 25. The company aims to raise ₹30.41 crore through the offering and has set a price band in the range of ₹210-222 per share.

Rappid Valves IPO Subscription Status

The IPO has been witnessing decent demand with the issue being subscribed 0.67 times till 11:17 am on Monday, the first day of the bidding. The IPO received bids for 6.09 lakh equity shares against 9.10 lakh shares on offer.

The retail investor segment was completely subscribed in just a little over an hour after opening for subscription and was booked 1.17 times subscription, while the non-institutional investors (NII) category was bid 0.38 times. However, the Qualified Institutional Buyers (QIBS) quota had not seen any bids till now.

About the IPO

Rappid Valves IPO is comprised of only a fresh issue of 13.7 lakh shares with no offer-for-sale component. The company plans to utilize the net proceeds from the issue for various purposes, including funding capital expenditure for purchasing new plant, machinery, and software, renovating its registered office and existing manufacturing unit, and repaying or prepaying certain borrowings. Additionally, the funds will support inorganic growth initiatives through acquisitions and cover general corporate purposes.

Retail investors must apply for a minimum lot size of 600 shares, amounting to an investment of ₹1,33,600. High net-worth individuals (HNIs) must apply for at least two lots, or 1,200 shares, totalling ₹2,66,400.

The allotment for the Rappid Valves IPO is expected to be finalised on Thursday, September 26, 2024. Meanwhile, the initiation of refunds for investors who were not allotted the shares and the credit of shares to the Demat account of the allottees will take place on Friday, September 27. The shares will be listed on the NSE SME platform on Monday, September 30, 2024.

Shreni Shares Limited is the book running lead manager of the Rappid Valves (India) IPO, while Link Intime India Private Ltd is the registrar for the issue. The market maker for Rappid Valves (India) IPO is Rikhav Securities.

About the company

Incorporated in 2002, Rappid Valves (India) Limited specializes in manufacturing a wide range of valve solutions. The company produces various types of valves, including ball, gate, globe, butterfly, check, double block, filter, and marine valves, crafted from both ferrous and non-ferrous materials. These valves cater to diverse needs, with sizes ranging from 15mm to 600mm.

Rappid Valves operates a fully equipped manufacturing unit featuring standard and advanced machinery, including CNC machines, VMCs, test benches, EOT cranes, and various other specialized equipment that ensure a smooth production process. Financially, the company saw significant growth, with revenue increasing by 123 percent and profit after tax (PAT) surging by 807 percent between the fiscal years ending March 31, 2024, and March 31, 2023.

Review

“The company is engaged in the business of manufacturing valve solutions. It posted bumper profits for FY24 i.e. pre-IPO year, that raise eyebrows and concern over its sustainability. It is operating in a highly competitive and fragmented segment. Based on FY24 super earnings, the issue appears relatively fully priced. Small equity post IPO indicates longer gestation period for migration. Well-informed investors may park moderate funds for long term,” Dilip Davda of Chittorgarh.com, said, assigning a ‘may apply’ rating to the issue.

Rappid Valves IPO GMP today

The IPO’s grey market premium (GMP) today is ₹0 per share, which indicates an expected listing price of ₹222, the same as its its issue price. The GMP has been the same since September 16.

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