Rappid Valves (India) IPO: SME Public Issue Fully Subscribed On Day 1, GMP Muted; Check Key Dates & More

Rappid Valves (India) Limited has officially opened its SME initial public offering (IPO) for subscription, running from September 23 to September 25, 2024. The company is looking to raise Rs 30.41 crore through this offering, with a price band set between Rs 210 and Rs 222 per share.

As of 1:20 pm on the first day of bidding, the IPO has garnered decent interest, being subscribed fully subscribed by 1.26 times. The company has received bids for 11.50 lakh equity shares against the 9.10 lakh shares available. Notably, the retail investor segment was fully subscribed within just over an hour of opening, with a subscription rate of 2.13 times. In contrast, the non-institutional investor (NII) category has seen 97% subscription, while the Qualified Institutional Buyers (QIBs) have yet to place any bids.

The Rappid Valves IPO consists solely of a fresh issue of 13.7 lakh shares, with no offer-for-sale component. The net proceeds from this IPO are earmarked for multiple purposes, including, capital expenditure, renovation projects, debt management, and inorganic growth initiatives.

Investors interested in this IPO should note that retail investors are required to apply for a minimum lot size of 600 shares, which translates to an investment of Rs 1,33,600. High net-worth individuals (HNIs) must apply for at least two lots, or 1,200 shares, amounting to Rs 2,66,400.

The allotment for shares is expected to be finalized on September 26, 2024. For those not allotted shares, refunds will be initiated, and shares will be credited to the Demat accounts of successful allottees on September 27. The listing on the NSE SME platform is anticipated to occur on September 30, 2024.

Shreni Shares Limited is serving as the book-running lead manager for the IPO, while Link Intime India Private Ltd has been appointed as the registrar. Rikhav Securities is designated as the market maker for this IPO.

Founded in 2002, Rappid Valves (India) Limited is a specialist in manufacturing a broad spectrum of valve solutions. The company produces various types of valves, including ball, gate, globe, butterfly, check, double block, filter, and marine valves. These products are crafted from both ferrous and non-ferrous materials and cater to a variety of industrial needs, with sizes ranging from 15mm to 600mm.

Rappid Valves operates a fully equipped manufacturing facility, featuring advanced machinery such as CNC machines, VMCs, test benches, and EOT cranes. Financially, the company has shown growth; its revenue surged by 123%, while profit after tax (PAT) skyrocketed by 807% between the fiscal years ending March 31, 2023, and March 31, 2024.

As for the IPO's performance in the grey market, the grey market premium (GMP) today stands at Rs 0 per share, indicating an expected listing price of Rs 222-equivalent to its upper issue price. The GMP has remained stable since September 16, suggesting steady market confidence in the offering.