Rappid Valves (India) Limited specializes in manufacturing a wide range of valve solutions. Rappid Valves (India) IPO is set to raise Rs 30.41 crores. The issue is entirely a fresh issue of shares.
IPO opens
September 23, 2024
IPO Closes
September 25, 2024
IPO Size (Rs.)
₹30.41 Cr
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹210 to ₹222 per share
Minimum Lot
600 Shares
Listing At
NSE SME
NII Quota
~50%
Retail Quota
~50%
Lead Manager
Shreni Shares Limited
Registrar
Link Intime
Market maker
Rikhav Securities.
Company is an Engineering Company, primarily engaged in the manufacturing of Valve solutions.
Their 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 across various valve Industries.
As of June 30, 2024, it had 47 employees on its payroll.
Promoter of company is Mr. Gaurav Vijay Dalal
Financials: Rappid Valves (India) Limited
Particulars (Rs. Cr.)
2024
2023
2022
Total Revenue
3,660.06
1,643.42
1,215.24
Profit after Tax
413.27
45.56
28.98
Net worth
1,221.98
312.21
-24.64
Net Asset Value
34.72
8.92
-4.48
Total borrowings
1098.3
992.65
977.57
Post issue Share Capital
519
FV
10.0
IPO price
222.0
EPS Fy23
0.9
PE Fy23
252.9
EPS Fy24
8.0
PE Fy24
27.9
Market cap in Lacs
11,522
Market cap / Sales
3.15
Rappid Valves (India) IPO: Anchors
Rappid Valves (India) IPO: Salient Points
They operate in the Valve Industry for manufacturing different types of Ball Valves, Gate Valves, Globe Valves, Check Valves, Butterfly Valves, etc. which are manufactured using ferrous and non-ferrous materials.
Net proceeds use :
Sr. No.
Particulars
Estimated Amount
1.
Funding the Capital expenditure for purchase of new Plant and Machineries and Software by Company
673.11
2.
Expenditure for renovation of registered office and existing manufacturing unit
38.88
3.
Repayment/prepayment of all or certain of our borrowings availed of by our Company
1,050.00
4.
Pursuing inorganic growth initiatives through acquisitions#; and
400.00
5.
General Corporate Purpose#
[●]
Industries and the revenues generated
Revenue from Operations
For the period ended
Industry / Sector
March 31, 2024
March 31, 2023
March 31, 2022
Rs.In lakhs
%
Rs.In lakhs
In%
Rs.In lakhs
%
Ethanol, Breweries and Industrial Wastewater Treatment
1,098 .8
30.1%
1,380 .6
84.2%
773.9
63.7%
Marine Allied Industry
1,069 .8
29.3%
8.4
0.5%
0.2
0.0%
Shipbuilding & Repair
401.0
11.0%
–
0.0%
38.8
3.2%
EPC Contractors
378.0
10.4%
11.2
0.7%
1.8
0.1%
Original Equipment Manufacturer (OEM)
219.9
6.0%
4.1
0.2%
3.4
0.3%
Fire Safety
125.3
3.4%
1.3
0.1%
–
0.0%
Chemicals & Process
113.0
3.1%
90.2
5.5%
312.7
25.8%
Steel
81.4
2.2%
17.8
1.1%
61.7
5.1%
Others
164.0
4.5%
126.2
7.7%
21.6
1.8%
In last FY, they have gained good traction in marine valves as well as valves for ethanol/ waste water treatment sector. .
Targeting defense. Maharashtra state fund has invested in the company. The company received a funding of Rs 500 lakhs from Maharashtra Defence and Aerospace Venture Fund.
Valves made are designed inhouse.
Expanding their sales offices and team.
Exports are low and may not be on company’s radar at this point.
Management expect steady growth going forward.
Maharashtra Defence and Aerospace fund which onboarded the company in Oct 2023 has resulted in significant orders in the Defence sector. This helped it to purchase many high end machines.
These defence orders are now 55-60% of the orderbook and include clients like GRSE, Mazgaon Dock, L&T Ship Building etc.
PE 2024: 28x.
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RONW %
Rappid Valves (India)
222
36.6
4.13
11.3%
27.9
3.15
14.59%
Atam Valves Ltd
158
52.6
5.83
11.1%
30.5
3.36
30.68%
Chemtech Industrial Valves
269
31.38
4.15
13.2%
79.3
10.7
23.19%
Increasing business for defence and part of the Net Proceeds going towards purchase of certain machineries for expansion at manufacturing facility at Palghar, Maharashtra bode well for the company.
I intend to apply in Rappid Valves (India) IPO subject to availability of funds. company’s attempt to position as a preferred brand in the niche marine industry should results in good prospects with orders from maritime defence industry SME IPOs have been lately under pressure due to flood of issues and poor quality.
Shreni Shares Private Limited is the lead manager with quite a decent record of good listing and performance subsequently. Past issues handled by them include Picture Post Studios,Dhariwalcorp Limited, Prizor Viztech Limited, Effwa Infra & Research Limited , Visaman Global Sales Limited, GSM Foils Limited, Quest Laboratories Limited, Silkflex Polymers (India) Limited, Refractory Shapes Limited,Yash Optics & Lens, Gabriel Pet Straps Limited, DelaPlex Limited, Net Avenue Technologies Limited, Swashthik Plascon Limited, KK Shah Hospitals Limited, Marco Cables & Conductors Limited, Meson Valves India Limited, C P S Shapers Limited, AccelerateBS India Limited, Global Pet Industries Limited, Veefin Solutions Limited, Sancode Technologies Limited, Bright Outdoor Media Limited, Srivasavi Adhesive Tapes Limited, Arihant Academy Limited, PNGS Gargi Fashion Jewellery Limited, DAPS Advertising Limited, Olatech Solutions Limited etc.
Market maker Rikhav Securities also seems to have done a decent job.
GMP as reported on social media is Rs. 52 (23%)
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
