The SME IPO of Rappid Valves has opened for subscription today and will close on September 25. The company aims to raise Rs 30 crore through the SME IPO and list the shares on NSE SME platform. Here are 10 key things investors need to know about the public offer before subscribing to the issue.
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1) Rappid Valves IPO size
The IPO is entirely a fresh equity issue of 13.69 lakh shares and through the issue, the company plans to raise Rs 30 crore.
2) Rappid Valves IPO price band
The company is offering its shares at Rs 210-222 apiece, and investors can bid for 600 shares in 1 lot.
3) Rappid Valves GMP
In the unlisted market, the company’s shares had no GMP ahead of issue opening.
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4) About Rappid Valves
The company is an engineering player, primarily engaged in the manufacturing of valve solutions. Its extensive product portfolio encompasses a vast range of valves which includes Ball valves, Gate Valves, Globe Valves, Butterfly Valves, Check Valves, Double Block valves, Strainer Valves and Marine Valves.
5) Industry overview
The valves market size is estimated at $79.90 billion in 2024, and is expected to reach $108.20 billion by 2029, growing at a CAGR of 6.25% during the forecast period (2024-2029).
Valves control the flow and pressure within a system or process. It forms an essential piping system component that conveys liquids, gases, vapors, slurries, etc. Hence, the growing investment in infrastructure development and the automation of industries are driving the growth of the studied market.
6) Rappid Valves financial performance
For the year ended March 2024, the company clocked total revenues of Rs 36.6 crore and net profit of Rs 4.13 crore.
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7) Objects of the offer
The net proceeds from the public offer will be used for funding capital expenditure for purchase of new plant and machineries and software, repayment of debt, pursuing inorganic growth through acquisitions and other general corporate purposes.
8) Lead managers and Registrar
Sherni Shares is acting as the lead manager to the issue and Link Intime India is the registrar.
9) Issue structure
About 50% of the offer is reserved for QIB investors, 35% for retail investors, and the rest 15% for non-institutional investors.
10) Important dates
The IPO opened on September 23 and will close on September 25. The final allotment will likely be made on September 26. The company’s shares will likely get listed on September 30..
