Rappid Valves (India) IPO: Review, Valuation, Date & GMP

Rappid Valves (India) IPO-Complete Overview

Rappid Valves (India) IPO an SME IPO is a book-built issue of Rs.30.41 crore by Rappid Valves (India) Limited which was founded in 2002. The primary business activity of the company is the production of valve systems.

The company sells a range of valves, such as globe, butterfly, check, double block, filter, ball, gate, and marine valves. These valves are available in diameters ranging from 15mm to 600 mm to accommodate a variety of needs. They are constructed from ferrous and non-ferrous materials.

The company's manufacturing unit is furnished with an extensive array of standard machinery, which facilitates a smooth and efficient manufacturing process. This machinery includes conventional and automated CNC machines, VMCs, test benches, EOT cranes, lathes, milling machines, drilling machines, grinders, saws, testers, lapping machines, welders, compressors, buffing machines, and testing equipment.

Additionally, the company has acquired a number of quality certifications, including ISO 45001:2018, ISO 9001:2015, and ISO 14001:2015.

This new SME IPO is to be launched on 23 September 2024, and its ‘initial public offering’ will end on 25 September 2024

 

Rappid Valves (India) IPO Overview

The Rs.30.41 crore Rappid Valves (India) IPO is an entirely fresh issue of 13.7 lac Shares. 

This SME IPO date is from September 23-September 25, 2024. The expected IPO listing date is on Monday, 30 September 2024, on NSE and SME. Rappid Valves (India) IPO price band is Rs.210 to Rs.222 for each Share.

 

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue was increased by 123% and PAT grew by 807% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Country-wise Export Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

 

Product-wise Revenue Breakdown 

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Financing the company's capital expenditure for the acquisition of new equipment, machinery, and software

• Expense for the current manufacturing facility and registration office renovations;

• Repayment or early repayment of all or a portion of the loans that our company has taken out

• Pursuing plans for inorganic expansion through acquisitions and

• General corporate purposes.

 

Peers of Rappid Valves (India) Ltd.

 

Evaluation

The IPO price is Rs.210 to Rs.222 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.11.74 from the last year, the resulting P/E ratio is 18.91x.

Considering the weighted EPS of Rs.1.20 for the last three years, the P/E ratio is 185x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 71.86x.

 

 

 IPO's Strengths 

• The company is well-established in the industrial and shipbuilding (marine) sectors, and it possesses great technological expertise

• Personnel with an engineering background who are extremely knowledgeable

• A production facility equipped with the necessary technology is needed to manufacture valves

• Willing to adapt to new developments and adjust our business practices to reflect the dynamics of the market 

 

IPO’s Weaknesses

• The industry demands a large capital investment, which could present difficulties for the business if money isn't periodically put into the company

• The business is entirely reliant on a single important promoter

• Disclosure of private designs created for our valves

• Fluctuations in the metal market may threaten the operations and profitability of the corporation. Keeping enough inventory on hand is crucial to handling an unexpected spike in the metals markets

• A change in government policy may have an impact on the company

• The limited supply of marine valves may force competitors to import from other nations, which could have an impact on our company's operations.

 

 

Rappid Valves (India) IPO GMP Today

Its IPO GMP today is Rs.0 as of 21 September 2024. With a price band of Rs.222, the estimated IPO listing price is Rs.222 at the time of writing this information.

IPO Timetable (Tentative)

The Rappid Valves IPO date is from September 23 to September 25, 2024, with allotment on September 26, refund initiation on September 27, and listing on September 30, 2024.

 

Rappid Valves (India) IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on September 23, 2024, close on September 25, 2024, and offer a total issue size of 1,369,800 Shares (Rs.30.41 Cr).

 

Rappid Valves (India) IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (600 Shares) amounting to Rs.1,33,200 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (1200 Shares) amounting to Rs.2,66,400.

 

 

Rappid Valves (India) IPO Reservation (% of Net Issue)

 

 

Promoters And Management of Rappid Valves (India) Ltd.

• Mr. Gaurav Vijay Dalal.

IPO Lead Managers

• Shreni Shares Limited.

 

Dividend Policy

The company has not paid dividends on equity Shares in the last three financial years.

 

Conclusion

Rappid Valves (India) Ltd. has experienced negative cash flow in operating, financing, and investing activities in the last fiscal years. The company's business is to offer 3D printing solutions and associated hardware and products. For the given periods, it showed an increase in both its top and bottom lines. The company is launching an IPO for the general public to achieve its goals. Hope this blog helped you with the information you were seeking.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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