Rappid Valves (India) Limited is set to launch its Initial Public Offering (IPO) on 23rd September 2024. The engineering company, known for its wide range of valve solutions, is aiming to raise ₹30.41 crore through this public issue. The IPO will remain open for subscription until 25th September, offering investors a limited window to participate.
Price Band and Investment Details
The price band for the Rappid Valves IPO is set between ₹210 and ₹222 per share. Investors interested in subscribing to the issue will need to apply for a minimum lot size of 600 shares. This translates to a minimum investment of ₹1,33,200 for retail investors. Importantly, there will be no Offer for Sale (OFS) in this IPO, meaning all funds raised will go directly to the company.
The allotment of shares to successful bidders is expected to take place on 26th September 2024, and the shares will be listed on the NSE SME platform on 30th September 2024.
Use of Funds from the IPO
Rappid Valves plans to utilize the funds raised from this IPO for several strategic purposes. A significant portion will be allocated for capital expenditure, including the purchase of new machinery, plant equipment, and software. Additionally, the company has earmarked funds for the renovation of its registered office and existing manufacturing facilities. Some proceeds will also be used for debt repayment, acquisitions, and general corporate expenses.
Business Overview of Rappid Valves
Established in 2002, Rappid Valves (India) Limited has carved a niche in the engineering sector with its wide range of valve solutions. Operating under the brand name “Rapid,” the company manufactures a variety of valve products, including ball valves, gate valves, globe valves, butterfly valves, check valves, and marine valves. Its products cater to various industries, adding to its strong reputation in the market.
The company’s manufacturing facilities are located in Thane, Maharashtra, where it produces these specialized valve solutions. Rappid Valves has demonstrated strong growth in recent years, as evidenced by its financial performance.
Financial Performance
Rappid Valves has shown remarkable growth in both revenue and profit over the last year. For the fiscal year 2024, the company posted revenue of ₹36.60 crore, nearly doubling its 2023 revenue of ₹16.43 crore. Furthermore, the company’s profit jumped significantly, reaching ₹4.13 crore in 2024, compared to ₹0.46 crore in 2023.
This financial success is one of the key reasons why the company is looking to expand its operations and improve its infrastructure through the funds raised in this IPO.
Key Players in the IPO Process
Shreni Shares Limited is the book-running lead manager for the Rappid Valves IPO, ensuring smooth handling of the issue. Link Intime India Private Limited is the registrar for the IPO, while Rikhav Securities is the market maker.
The IPO’s retail portion is set at 35%, while 50% is reserved for Qualified Institutional Buyers (QIBs), and 15% for High Net-Worth Individuals (HNIs). This distribution offers various segments of the investor market an opportunity to participate in the growth of Rappid Valves.
With strong financials and a clear strategy for future growth, the Rappid Valves IPO is an exciting opportunity for investors seeking to invest in the industrial manufacturing sector.
