Introduction
Rapid Valves (India) Limited is set to launch its Initial Public Offering (IPO) on September 23, 2024. Aiming to raise ₹30.41 crore, the company has established a price band between ₹210 and ₹222 per share. This IPO presents a unique opportunity for investors, as it will remain open for subscription until September 25, 2024, and features exclusively fresh equity shares without an Offer for Sale (OFS), meaning all funds raised will directly benefit the company.
IPO Details
The key points of the Rapid Valves (India) IPO are outlined below:
| Parameter | Details |
|---|---|
| Issue Size | ₹30.41 crore |
| Price Band | ₹210 – ₹222 per share |
| Subscription Dates | September 23 – September 25, 2024 |
| No. of Fresh Shares | 13.7 lakh |
| Retail Quota | 35% |
| QIB Quota | 50% |
| HNI Quota | 15% |
| Allotment Date | September 26, 2024 |
| Listing Date | September 30, 2024 |
Investment Insights
The minimum lot size for this IPO is 600 shares, requiring an investment of at least ₹133,200 for retail investors. Shreni Shares Limited is acting as the book running lead manager, with Link Intime India Private Limited serving as the registrar. Rikhav Securities will be the market maker for this issue.
Use of Funds
Rapid Valves (India) intends to allocate the proceeds from the IPO towards significant capital expenditures such as the acquisition of new machinery and software, renovations of their registered office and existing manufacturing unit, as well as to repay debts and fund general corporate purposes. This strategic allocation of funds aims to enhance operational efficiency and expand the company’s market footprint.
Company Overview and Financials
Founded in 2002, Rapid Valves (India) Limited, commonly known as “Rapid,” specializes in engineering and manufacturing a diverse range of valve solutions. Their product line includes ball, gate, globe, butterfly, check, double block, strainer, and marine valves, catering to various industrial needs. With manufacturing facilities located in Thane, Maharashtra, the company has shown substantial growth in recent years, recording a revenue increase from ₹16.43 crore in 2023 to ₹36.60 crore in 2024. Additionally, their profit saw a notable rise from ₹0.46 crore in 2023 to ₹4.13 crore in 2024, reflecting robust operational performance and effective management strategies.
Conclusion
The upcoming IPO of Rapid Valves (India) presents an exciting opportunity for investors looking to be part of a growing enterprise in the engineering sector. With a strong product portfolio, promising financial growth, and a clear strategy for utilizing the funds raised, Rapid Valves is well-positioned for future success. Investors are encouraged to consider this opportunity as they assess their investment strategies.
