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Key IPO Information
Rappid Valves’ IPO is set to open between September 23 and 25. The company has set a cut-off price of ₹222 per share, and the lot size is 600 shares, meaning a minimum investment of ₹33,200 is required. The company aims to raise ₹30.41 crore, and its total valuation has been pegged at ₹115 crore.
Rappid Valves IPO Information :
| IPO Details | Information |
|---|---|
| IPO Date | September 23, 2024 to September 25, 2024 |
| Listing Date | Monday, 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 Cr) |
| Fresh Issue | 1,369,800 shares (aggregating up to ₹30.41 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Shareholding Pre-Issue | 3,822,184 shares |
| Shareholding Post-Issue | 5,191,984 shares |
| Market Maker Portion | 69,600 shares |
| Market Maker | Rikhav Securities |
Rappid Valves IPO Timeline
| Event | Date |
|---|---|
| IPO Open Date | Monday, September 23, 2024 |
| IPO Close Date | Wednesday, September 25, 2024 |
| Basis of Allotment | Thursday, September 26, 2024 |
| Initiation of Refunds | Friday, September 27, 2024 |
| Credit of Shares to Demat | Friday, September 27, 2024 |
| Listing Date | Monday, September 30, 2024 |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on September 25, 2024 |
Promoters and Shareholding
The promoters of the company, who are its founders, initially held 69% shareholding, but after the IPO, it will decrease to 51%. While this may seem like a slight negative for a small company, the promoters will still maintain a significant control over the company, ensuring stability in leadership.
Rappid Valves (India) IPO Application Information
| Category | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 600 | ₹133,200 |
| Retail (Max) | 1 | 600 | ₹133,200 |
| HNI (Min) | 2 | 1,200 | ₹266,400 |
Why is the Company Raising Money?
Rappid Valves aims to use the funds raised through the IPO to purchase new plants and machinery to upgrade its production capacity and improve product quality. Additionally, the company may acquire other businesses in the future to expand its market presence.
Financial Performance
In terms of financial performance, Rappid Valves has doubled its revenue compared to the previous financial year. Its net profit has increased by 78 times, showing impressive growth. The company’s balance sheet looks stable with an investment of ₹30 crore, but there have been some cash flow challenges due to high inventory levels.
Industry and Customer Base
Rappid Valves primarily operates in the B2B (business-to-business) model. Most of its sales come from sectors such as ethanol, liquor, marine industry, shipbuilding, and fire safety. The company is working on expanding its customer base, but a large portion of its revenue currently comes from its top 10 customers.
Promoters’ Contribution
The company’s promoter, Gaurav Vijay Dalal, will continue to hold control of the company post-IPO with a 47% stake. However, one point of concern is the related party transactions, where sales have been made to other companies owned by the promoters.
Rappid Valves IPO Valuation
The company’s PE ratio (Price-to-Earnings Ratio) is estimated to be around 29, which is competitive compared to other companies in the same industry, like Atma Valves, whose PE ratio stands at 30. This indicates that the Rappid Valves IPO is fairly priced, offering a potential opportunity for investment. The company’s PB ratio (Price-to-Book Ratio) is around 2.9, which also compares favorably to industry standards.
Is it Worth Investing?
Considering the company’s growth trajectory, rising profits, and future plans, the Rappid Valves IPO looks attractive for long-term investors. If the company continues on its current growth path, its share price could potentially rise by ₹50-60 or more. However, it is essential to consult with a financial advisor before making any investment decisions.
Conclusion
The Rappid Valves IPO could be a good investment opportunity for those looking to invest for the long term. The company’s growth rate, PE ratio, and PB ratio suggest a balanced investment option. Nevertheless, always conduct your research and consult your financial advisor before making any decisions.
Do you think investing in Rappid Valves’ IPO is a good choice? Let us know your opinion in the comments below.
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