Rappid Valves (India) Limited has launched its SME (Small and Medium-sized Enterprises) initial public offering (IPO) today, September 23, 2024. The IPO will be open for subscription until September 25, 2024, with the company aiming to raise ₹30.41 crore through this offering. The price band is set between ₹210 and ₹222 per share.
The Rappid Valves IPO has received a good response, being subscribed 0.67 times on the first day of bidding, with bids for 6.09 lakh equity shares against 9.10 lakh shares available. The retail investor segment has shown strong interest, being fully subscribed in just over an hour after opening, with a subscription rate of 1.17 times. However, the non-institutional investors (NII) category has been subscribed only 0.38 times so far, while the Qualified Institutional Buyers (QIBs) have not yet placed any bids.
The Rappid Valves IPO includes a fresh issue of 13.7 lakh shares, and there is no offer-for-sale component. The company plans to use the money raised from the IPO for various purposes, including purchasing new plant and machinery, renovating its registered office and manufacturing unit, repaying or prepaying some borrowings, supporting growth initiatives through acquisitions, and covering general corporate expenses. Retail investors must apply for a minimum lot size of 600 shares, which costs ₹1,33,600, while high net-worth individuals (HNIs) need to apply for at least two lots, or 1,200 shares, totaling ₹2,66,400.
Key dates for the IPO include the opening date on September 23, 2024, and closing date on September 25, 2024. The allotment date is expected to be September 26, 2024, with refunds for non-allottees and credit of shares to Demat accounts on September 27, 2024. The shares are set to list on the NSE SME platform on September 30, 2024.
Founded in 2002, Rappid Valves specializes in manufacturing a wide range of valve solutions, including ball, gate, globe, butterfly, check, double block, filter, and marine valves. These valves are made from both ferrous and non-ferrous materials, catering to various industrial needs, with sizes ranging from 15mm to 600mm.
The gray market premium (GMP) for the Rappid Valves IPO is currently ₹0 per share, indicating an expected listing price of ₹222, which matches the issue price. The GMP has remained unchanged since September 16, suggesting steady expectations for the stock’s performance.
Investors interested in applying for the Rappid Valves IPO can do so through their demat accounts with a registered broker. The application process involves submitting a bid for the desired number of shares within the price band.
The Rappid Valves IPO presents a chance for investors to be part of a growing company in the industrial sector. As always, it’s important for investors to consider their financial goals and risk tolerance before investing. Consulting with a financial advisor is recommended for personalized guidance.
