Rappid Valves (India) is coming up with an IPO with a fresh issue of 13,69,800 shares worth INR 30.41 crores. The company aims to purchase new plant and machinery and software, renovate the office premises, repayment of borrowings, inorganic growth initiatives and for general corporate purposes.
Rappid Valves (India) IPO – Important Dates
| Rappid Valves (India) IPO Date | September 23, 2024 to September 25, 2024 |
| Rappid Valves (India) IPO Listing Date | September 30, 2024 |
| Rappid Valves (India) IPO Price | INR 210-222 per share |
| Rappid Valves IPO Lot Size | 600 Shares |
| Rappid Valves (India) IPO Total Issue Size | INR 30.41 crores |
| Rappid Valves IPO Basis of Allotment | September 26, 2024 |
| Rappid Valves (India) IPO Initiation of Refunds | September 27, 2024 |
| Rappid Valves (India) IPO Credit of Shares to Demat | September 27, 2024 |
| Rappid Valves (India) IPO Issue Type | Book Built Issue IPO |
| Rappid Valves (India) IPO Listing At | NSE SME |
Rappid Valves (India) Limited IPO – Company Profile
Rappid Valves (India) Limited recognized by its brand name “Rapid” also known as “Rappid Valves”, being an Engineering Company, is primarily engaged in the manufacturing of Valve solutions.
The 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 which are manufactured using ferrous and non-ferrous materials, sizes ranging from 15mm to 600mm catering to diverse requirement.
The company, since its incorporation and currently, has been promoted by Mr. Gaurav Vijay Dalal. The promoter, Mr. Gaurav Vijay Dalal, has 22 years of overall work experience in this industry. He manages and controls the overall affairs of the business operations, leveraging his considerable experience in the industry.
Rappid Valves India Ltd IPO Fundamental Analysis
Rappid Valves India shows strong financial improvement, with controlled expenses, rising profitability, and efficient capital usage. The positive growth trajectory and healthier balance sheet may make this IPO an attractive investment opportunity. However, the earlier high debt-equity ratio and fluctuating equity should be considered.
- Revenue: A steady rise, from ₹1,214.11 lakhs (2022) to ₹3,651.25 lakhs (2024), indicates strong business growth.
- Equity: Notably improved from a negative position of ₹(24.64) lakhs (2022) to ₹1,221.98 lakhs (2024), reflecting the company’s recovery and capital accumulation.
- Expenses: Increased with revenue, but controlled, showcasing an ability to manage costs effectively.
- Profit After Tax: Grew from ₹28.98 lakhs (2022) to ₹413.27 lakhs (2024), signaling healthy profitability.
- Return on Net Worth (RoNW): Strong turnaround from negative (-117.61%) to 33.82%, showing effective capital utilization.
- Diluted EPS: Grew impressively from ₹1.30 (2023) to ₹11.74 (2024), indicating robust earnings growth per share.
- Debt-Equity Ratio: Decreased significantly from 39.67 (2022) to 0.90 (2024), reflecting improved leverage management.
- Current Ratio: Strengthened from 0.80 to 1.48, indicating better liquidity
Rappid Valves (India) Limited IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 1,214.11 | 1,639.91 | 3,651.25 |
| Equity (₹ in lakhs) | (24.64) | 312.21 | 1,221.98 |
| Expenses (₹ in lakhs) | 1,186.25 | 1,580.64 | 3,107.04 |
| Profit and Loss After Tax (₹ in lakhs) | 28.98 | 45.56 | 413.27 |
| Diluted EPS only (₹) | 5.27 | 1.30 | 11.74 |
| Return on Net Worth (%) | (117.61) | 14.59 | 33.82 |
| NAV per Equity Share (₹) | (4.48) | 8.92 | 34.72 |
| Total Assets (in lakhs) | 1,217.60 | 1,656.75 | 2,994.41 |
| Total Liabilities (in lakhs) | 1,242.24 | 1,344.54 | 1,772.43 |
| Debt Equity Ratio | 39.67 | 3.18 | 0.90 |
| Current Ratio (in times) | 0.80 | 1.04 | 1.48 |
| Inventory Turnover Ratio | 2.06 | 2.04 | 2.87 |
Rappid Valves India IPO Peer Comparison
Rappid Valves offers moderate profitability with a strong RoNW at 14.59% but lacks a P/E ratio for valuation comparison. Atam Valves shows solid returns with a lower P/E of 20.36, while Hawa Engineers has a high P/E of 114.40 and moderate returns.
| Company | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| Rappid Valves (India) Limited | 10 | – | 1.30 | 14.59 | 8.92 |
| Atam Valves Ltd | 10 | 20.36 | 7.67 | 30.68 | 25.01 |
| Hawa Engineers Limited | 10 | 114.40 | 2.43 | 23.19 | 10.47 |
Rappid Valves India Ltd IPO Objective
The main objective of Rappid Valves IPO is to invest INR 6.73 crores in plant and machinery, INR 38 lakhs for office renovations, and INR 10.50 crores for repaying borrowings, while pursuing acquisitions and addressing general corporate purposes.
- To purchase plant and machinery and software: The strategy to expand the business requires us to invest in additional plant and machinery, and to increase production capacity to meet client demand by reducing lead times and fulfilling industry requirements. The company plans to invest INR 6.73 crores for this purpose.
- Renovation of registered office and existing manufacturing unit: The company intends to utilise an estimated amount of INR 38 lakhs from the net proceeds to renovate existing registered office and factory unit located at Genesis Industrial Complex,Thane.
- Repayment of borrowings: The company plans to utilise INR 10.50 crores for repayment of the borrowings of the company.
- Pursuing inorganic growth initiatives through acquisitions: The company intends to pursue opportunities to undertake acquisitions (i) that allow the company to enhance the scale and market position; (ii) that allow the company to enhance the product portfolio including product category adjacencies by unlocking potential synergy benefits.
- General Corporate Purposes: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, enhancing business development and marketing capabilities, and addressing unforeseen exigencies.
Rappid Valves (India) IPO Risks And Challenges
Rappid Valves faces risks from historical negative cash flows, which could hinder growth. Supply chain disruptions or price fluctuations in raw materials may impact product pricing. Additionally, reliance on the top five customers for 72% of revenue poses significant risk if any of them reduce orders or cease business.
- The Company had negative cash flows in the past years. Sustained negative cash flow could impact the growth and business.
- Any delays, interruptions or reduction in the supply of raw materials to manufacture the products and any abrupt fluctuations in the prices of the raw materials may adversely affect the pricing of the product.
- The top 5 customers contribute 72% of the company’s revenue. The loss of, or a significant reduction in, the revenues the company receives from one or more of these customers may adversely affect the business.
Rappid Valves India Ltd IPO – Industry & Market Potential
The Valves Market size is estimated at USD 79.90 billion in 2024, and is expected to reach USD 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. Rising investments in pipeline infrastructure in the oil and gas sector are expected to boost the installation of industrial valves.
India is one of the fastest-growing countries in manufacturing sectors and machinery, creating a significant demand for industrial valves. The Indian government provides benefits to companies setting up manufacturing units. It has also outlined various policies to boost the manufacturing sector.
Rappid Valves (India) IPO – Type of Offer
Rappid Valves (India) is launching an IPO featuring a fresh issue of 13,69,800 shares valued at INR 30.41 crores. The funds will be used to acquire new plant and machinery, software, renovate office facilities, repay borrowings, pursue inorganic growth initiatives, and cover general corporate expenses.
Rappid Valves Limited IPO Offer Size
The offer size for Rappid Valves (India) is a fresh issue of 13,69,800 shares valued at INR 30.41 crores. The company plans to use the proceeds for acquiring new plant and machinery, software, renovating office premises, repaying borrowings, pursuing inorganic growth initiatives, and general corporate purposes.
Rappid Valves (India) IPO Allotment Structure
Rappid Valves (India)’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII), in accordance with SEBI regulations. Additionally, 69,600 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 69,600 shares, are reserved for market makers.
How to apply for the Rappid Valves (India) Limited IPO?
To apply for the Rappid Valves (India) IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Rappid Valves (India) IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Rappid Valves (India) IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Rappid Valves IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Rappid Valves (India) IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Rappid Valves (India) IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Rappid Valves (India) IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Rappid Valves (India) IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Rappid Valves India Ltd IPO Offer Registrar
The registrar for the Rappid Valves (India) IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1 st Floor, 247 Park,
Lal Bahadur Shastri Marg, Vikhroli (West),
Mumbai-400083
Email: [email protected]
Website: www.linkintime.co.in
Rappid Valves (India) SME IPO – FAQs
1. What is the allotment date of the Rappid Valves (India) IPO?
The allotment date of the Rappid Valves (India) IPO is September 26, 2024.
2. What is the price band of the Rappid Valves (India) IPO?
The price band for the Rappid Valves IPO is INR 210-222 per share.
3. What is the size of the Rappid Valves (India) IPO?
The offer size for Rappid Valves (India) is a fresh issue of 13,69,800 shares valued at INR 30.41 crores. The company plans to use the proceeds for acquiring new plant and machinery, software, renovating office premises, repaying borrowings, pursuing inorganic growth initiatives, and general corporate purposes.
4. What is the listing date of the Rappid Valves (India) IPO?
The listing date of Rappid Valves (India)’s IPO is September 30, 2024.
