Invest in Rappid Valves (India) IPO Today! Price Band ₹210 to ₹222 Per Share

Incorporated in 2002, Rappid Valves (India) Limited primarily engages in the manufacturing of valve solutions. The company offers various valves, including ball, gate, globe, butterfly, check, double block, filter, and marine valves. These valves are made using ferrous and non-ferrous materials and come in sizes ranging from 15mm to 600mm to meet diverse requirements. The company's manufacturing unit is equipped with a comprehensive range of standard machinery, supporting a seamless manufacturing process. Rappid Valves has obtained various quality certifications, such as ISO 9001:2015, 14001:2015, and ISO 45001:2018. As of June 30, 2024, the company had employed 47 personnel at its Manufacturing Plant and Registered Office.

The Objectives of the Issue

Rappid Valves (India) Limited intends to utilise the Net Proceeds from the Issue towards the following objectives:

• Funding the Capital expenditure for the purchase of new Plant and machinery and Software by the Company
• Expenditure for the renovation of the registered office and existing manufacturing unit
• Repayment/prepayment of all or certain of our borrowings availed of by our Company
• Pursuing inorganic growth initiatives through acquisitions
• General corporate purposes

Highlights of Rappid Valves (India) IPO

Rappid Valves (India) IPO is set to launch with a book-built issue of ₹30.41 crores. The issue is entirely fresh. Here are the key details of the IPO:

• The IPO opens for subscription on 23rd September 2024 and closes on 25th September 2024.
• The allotment is expected to be finalised on 26th September 2024.
• Refunds will be initiated on 27th September 2024.
• Credit of shares to Demat accounts is also expected on 27th September 2024.
• The company will tentatively list on NSE SME on 30th September 2024.
• The price band is set at ₹210 to ₹222 per share.
• The fresh issue comprises 13.7 lakh shares, aggregating to ₹30.41 crores.
• The minimum lot size for the application is 600 shares.
• Retail investors need to invest a minimum of ₹133,200.
• The minimum investment for HNI is 2 lots (1,200 shares), amounting to ₹266,400.
• Shreni Shares Limited is the book running lead manager for the IPO.
• Link Intime India Private Ltd serves as the registrar.
• Rikhav Securities is the market maker for the IPO.

Rappid Valves (India) IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 25th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Rappid Valves (India) IPO Issue Details/Capital History

The Rappid Valves (India) IPO is scheduled from 23rd September to 25th September 2024, with a price band of ₹210 to ₹222 per share and a face value of ₹10. The total issue size is 13,69,800 shares, raising up to ₹30.41 crores through a fresh issue. The IPO will be listed on NSE SME. The pre-issue shareholding is 38,22,184 shares.

Rappid Valves (India) IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 600 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Rappid Valves (India) Ltd

Strengths:

• Experienced and dedicated key management personnel
• Focus on innovative and new products
• Solid knowledge base of Marine Industries
• Upgradation and expansion of manufacturing capabilities
• Technologically advanced manufacturing facility
• Significantly expert personnel with an engineering background

Weaknesses:

• Limited geographical presence
• Dependency on specific industries for revenue

Opportunities:

• Expanding geographical reach by establishing sales offices in new locations
• Growing demand for valve solutions in various industries
• Potential for international market expansion

Threats:

• Intense competition in the valve manufacturing sector
• Fluctuations in raw material prices
• Economic slowdowns affecting industrial growth

Financial Highlights: Rappid Valves (India) Ltd

Below are the financial results for the Fiscal years FY24, FY23, and FY22:

These numbers demonstrate a steady growth in the company’s financials over the past three years, reflecting strong management and operational efficiency.

Rappid Valves (India) Limited has shown significant growth in recent years. The company's revenue increased by 123% and profit after tax (PAT) rose by 807% between the financial year ending with 31st March 2024 and 31st March 2023.

Assets have shown strong growth, increasing from ₹1,217.6 lakhs in FY22 to ₹2,994.41 lakhs in FY24, representing a growth of about 146% over two years.

Revenue has seen substantial growth, rising from ₹1,215.24 lakhs in FY22 to ₹3,660.06 lakhs in FY24, marking an impressive increase of 201% over two years.

The company's profitability has improved significantly. Profit After Tax increased from ₹28.98 lakhs in FY22 to ₹413.27 lakhs in FY24, representing a substantial growth of 1,326% over two years.

Net Worth has shown a remarkable turnaround, increasing from a negative ₹24.64 lakhs in FY22 to a positive ₹1,221.98 lakhs in FY24, indicating a significant improvement in the company's financial position.

Total Borrowings have increased moderately from ₹977.57 lakhs in FY22 to ₹1,098.3 lakhs in FY24, which represents an increase of about 12.3% over two years. This relatively small increase in borrowings, coupled with the significant growth in revenue and profitability, suggests improved financial efficiency.

The company's financial performance shows a trend of strong revenue growth and dramatically improving profitability. The turnaround in Net Worth from negative to positive is particularly noteworthy. Investors should consider these positive trends along with the company's growth strategy and the evolving valve manufacturing market when evaluating the IPO.