Rexpro Enterprises IPO: Dates, Price, GMP & Key Insights

Rexpro Enterprises IPO-Complete Overview

Rexpro Enterprises IPO under the SME IPO category is a fixed price issue of Rs.53.65 Cr (37,00,000 Shares) by Rexpro Enterprises India Limited established in March 2012. The company is a manufacturer of furniture mostly located in Vashi, a town in Maharashtra. The firm started as a manufacturer of furniture and fixtures to retailers and acquired customers trickling down the retail sector, like fashion, lifestyle, electronics, grocery, beauty, telecom, etc.

The firm manufactures furniture for hospitals, government offices, and, of late, the home segment and has three units of manufacture based in Vashi, Maharastra. 

Among the clients of the company are, One RX India Private Limited (Samsung), Lenskart, Hindustan Unilever, Shoppers Stop Limited, Godrej & Boyce Mfg. Co. Limited, Marks & Spencer Reliance India Pvt Limited.

 

Rexpro Enterprises Limited IPO Overview

This Rexpro Enterprises IPO date is 22 January, and its ‘initial public offering’ will end on 24 January 2025.    

This Rs.53.65 crore new SME IPO comprises a combination of a fresh issue of 32.50 lac Shares (Rs.47.13 Cr) and an offer for sale (OFS) of 4.50 lac Shares (Rs.6.53 Cr).

This upcoming IPO date is on 22 Jan 2025. The Rexpro Enterprises IPO Price is Rs.145 for each Share. 

The expected IPO listing date is 29 Jan 2025, and the listing at NSE and SME.

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

Company Financial

(Amount in Lac)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

 

Segment-wise Revenue Breakdown 

(Amount in lac)

 

Geography-wise Revenue Breakdown

(Source: RHP)

 

The Objective of The Issue

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

• Financing of the company's working capital needs for the purchase of equipment and factory renovations.

• Seeking inorganic development.

 

Peers of Rexpro Enterprises Ltd.

 

Note:-The basic EPS of the peers is for the financial year ended on 31 Mar 2024.

 

Evaluation

The Rexpro Enterprises Limited IPO share price is Rs.145 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.5.69 from the last year, the resulting P/E ratio is 25.5x.

Considering the weighted EPS of Rs.3.22 for the last three years, the P/E ratio is 45.03x.

IPO's Strengths

• Feasible means of production or manufacture of customized products.

• Efficient quality control and business conduct practices.

• Multi-manufacturing facilities that can accommodate multiple-use papers.

• Long-standing close corporate relations with key clients.

• Very experienced team and management. 

 

IPO’s Weaknesses

• Delays in Project Completion: Slippage in 10 out of 17 ongoing projects poses risks of increased costs, penalties, and reputation damage.

• Dependence on Government Clients: A large proportion (83.98%) of revenue is from the Government of Karnataka, making the company vulnerable to policy changes or contract alterations​.

• Legal and Regulatory Risks: Promoters face lawsuits that could extend investigations and harm the company’s reputation and operations​.

• Reliance on Third-Party Contractors: Dependency on external contractors increases risks of delays, quality issues, and potential financial instability of these contractors​.

 

Rexpro Enterprises IPO GMP Today

Rexpro Enterprises IPO GMP has not started yet as of 17 January 2025.

IPO Timetable (Tentative)

The IPO opening date is January 22, with allotment on January 27, refund initiation on January 28, and listing on January 29, 2025.

Rexpro Enterprises IPO Details 

The Rexpro Enterprises IPO with a Face Value of Rs.10 per share offers a total issue size of 37,00,000 Shares (Rs.53.65 Cr).

Rexpro Enterprises IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.1,45,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.2,90,000.

 

IPO Reservation (% of Net Issue)

Promoters And Management of Rexpro Enterprises India Ltd.

• Minesh Anilbhai Chovatia

• Premal Niranjan Shah

• Ragesh Deepak Bhatia

• Ravishankar Sriramamurthi Malla.
  
  

IPO Lead Managers

Horizon Management Private Limited.

Dividend Policy

The company has not declared a dividend.

Conclusion

Rexpro Enterprises IPO presents an opportunity for investors, thanks to a strong customer base and a diverse manufacturing base. However, while the company has solid financial growth and strategies planned, issues such as project delays and an over-reliance on government contracts always remain a risk for the company in all of its plans. Investors should notice the positives and risks before any decision. 

 

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