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Rappid Valves India IPO: Things Smart Investors Need to Know

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Incorporated in 2002, Rappid Valves (India) Limited specializes in manufacturing a diverse range of valve solutions. The company’s product portfolio includes ball, gate, globe, butterfly, check, double block, filter, and marine valves, all of which are made from ferrous and non-ferrous materials. The valves are available in sizes ranging from 15mm to 600mm, catering to a wide range of industrial requirements.

Rappid Valves operates a state-of-the-art manufacturing unit equipped with advanced machinery such as CNC machines, VMCs, test benches, EOT cranes, lathes, and drilling machines. This comprehensive setup enables efficient and high-quality production of valves. Additionally, the company holds several certifications, including ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018, underscoring its commitment to quality and environmental management.

Core Business and Market Position:

Rappid Valves India focuses on manufacturing valves that control the flow of fluids in industrial processes. The company has earned certifications and follows stringent quality standards, positioning itself as a reliable supplier in the domestic and international markets. Its diverse product portfolio and adherence to industry standards make it a key player in the valve industry.

Rappid Valves India IPO Details and Objectives

Rappid Valves (India) IPO is a book-built issue aiming to raise ₹30.41 crores through a fresh issue of 13.7 lakh shares. The IPO will open for subscription on September 23, 2024, and close on September 25, 2024. The allotment is expected to be finalized on September 26, 2024, with the listing on NSE SME scheduled for September 30, 2024.

The price band for the Rappid Valves (India) IPO is set at ₹210 to ₹222 per share. The minimum lot size is 600 shares, requiring a minimum investment of ₹133,200 for retail investors. High Net-Worth Individuals (HNIs) need to apply for a minimum of two lots, amounting to ₹266,400.

Shreni Shares Limited is the lead manager for the IPO, with Link Intime India Private Ltd as the registrar. Rikhav Securities will serve as the market maker.

Purpose of the IPO:

  • Capital Expenditure: Purchase of new plant, machinery, and software
  • Renovation: Upgrading the registered office and manufacturing unit
  • Debt Management: Repayment/prepayment of company borrowings
  • Inorganic Growth: Pursuing acquisitions
  • General Corporate Purposes

Expected Funds to be Raised

  • The IPO aims to raise ₹30.41 crores by offering 1,369,800 shares.

Key Dates to Remember

  • IPO Opening Date: Monday, September 23, 2024
  • IPO Closing Date: Wednesday, September 25, 2024
  • Basis of Allotment: Thursday, September 26, 2024
  • Initiation of Refunds: Friday, September 27, 2024
  • Credit of Shares to Demat Accounts: Friday, September 27, 2024
  • Listing Date: Monday, September 30, 2024
  • Cut-off Time for UPI Mandate Confirmation: 5 PM on September 25, 2024

Pricing and Lot Size of Rappid Valves India IPO

  • IPO Date: September 23, 2024, to September 25, 2024
  • Listing Date: September 30, 2024
  • Face Value: ₹10 per share
  • Price Band: ₹210 to ₹222 per share
  • Lot Size: 600 shares
  • Total Issue Size: 1,369,800 shares (aggregating up to ₹30.41 crore)
  • Fresh Issue: 1,369,800 shares (aggregating up to ₹30.41 crore)
  • Issue Type: Book Built Issue IPO
  • Listing At: NSE SME
  • Pre-Issue Shareholding: 3,822,184 shares
  • Post-Issue Shareholding: 5,191,984 shares
  • Market Maker Portion: 69,600 shares 

How to Apply for the Rappid Valves India IPO?

  • Online Application Process:
    • Log in to your Demat account on your broker’s platform
    • Navigate to the IPO section and select "Rappid Valves India IPO"
    • Enter the number of shares you wish to apply for and place your bid
    • Complete the payment via UPI or ASBA
    • Confirm your application and track the allotment status

Financial Health and Performance

  • Key Financial Metrics:
    • Rappid Valves (India) Limited’s revenue increased by 123%, from ₹1,643.42 lakhs in FY 2023 to ₹3,660.06 lakhs in FY 2024.
    • Profit after tax (PAT) surged by 807%, rising from ₹45.56 lakhs in FY 2023 to ₹413.27 lakhs in FY 2024.
    • Assets grew significantly, from ₹1,656.75 lakhs in FY 2023 to ₹2,994.41 lakhs in FY 2024.
  • Recent Performance and Growth Prospects: The company’s net worth improved substantially, increasing from ₹312.21 lakhs in FY 2023 to ₹1,221.98 lakhs in FY 2024. Reserves and surplus showed positive growth, reaching ₹371.98 lakhs in FY 2024, compared to a deficit of ₹-37.79 lakhs in FY 2023. Total borrowing increased slightly from ₹992.65 lakhs in FY 2023 to ₹1,098.30 lakhs in FY 2024.

Investment Risks and Opportunities

Potential Risks of Investing in the IPO:

o   Industry volatility due to fluctuating raw material prices

o   Dependence on industrial demand for valves

o   Competition from both domestic and international players

Opportunities and Growth Potential:

o   Growing demand for valves in sectors like oil & gas, water treatment, and chemical processing

o   Expansion into new markets and regions

o   Investment in automation and technological advancements

Conclusion

The Rappid Valves India IPO offers a compelling opportunity for investors to be part of a growing company in the valve manufacturing industry. With its strong market presence and expansion plans, Rappid Valves India is well-positioned for future growth. However, investors should carefully evaluate the risks and opportunities before making any investment decisions.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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