Readymix Construction Machinery IPO opens on 6 February - GMP, Dates, Lot Size & Share Price

Services

Equity Investment with CA Abhay

FNO Stocks with CA Abhay

Stock Market Masterclass

Option Trading with CA Abhay

Equity Trading with CA Abhay

Readymix Construction Machinery IPO opens on 6 February - GMP, Dates, Lot Size & Share Price

Team Finance Saathi

03/Feb/2025

What's covered under the Article:

Readymix Construction Machinery IPO opens on February 6, 2025, with a ₹ 121-123 price range and a ₹ 37.66 Crore issue.
Grey Market Premium (GMP) shows no expected listing gain.
Financial performance highlights steady growth and the company's expertise in construction machinery.

Readymix Construction Machinery (RMX), a multidisciplinary manufacturer and supplier of construction equipment, is set to launch its Book Built Issue IPO for an amount of ₹ 37.66 Crores, with a price range of ₹ 121-123 per share. The issue consists entirely of a fresh issue of 30.62 Lakh shares. The IPO subscription period opens from February 6, 2025, to February 10, 2025, with an allotment date of February 11, 2025 and a tentative listing date on February 13, 2025 on the NSE SME.

The market capitalization of Readymix Construction Machinery at the upper IPO price of ₹ 123 per share is expected to be ₹ 134.78 Crores. Retail investors are required to invest a minimum of ₹ 1,23,000 for 1,000 shares, while High-Net-Worth Individuals (HNIs) must invest in 2 lots, totaling ₹ 2,46,000.

Despite steady financial growth, with revenues of ₹ 6,984.48 Lakh in FY 2024 and a Profit After Tax (PAT) of ₹ 928.48 Lakh for FY 2024, the Grey Market Premium (GMP) of ₹ 0 suggests there may be no listing gains. The pre-issue EPS stands at ₹ 11.76, with a post-issue EPS of ₹ 8.47 for FY24. The P/E ratio pre-issue is 10.46x, and post-issue, it's 14.52x, which suggests that the IPO is fully priced compared to its financials.

The objectives of the IPO include repayment of borrowings (₹ 525 Lakhs), meeting working capital requirements (₹ 2,405 Lakhs), and general corporate purposes. While the company has strong leadership with extensive experience in the construction machinery sector, the lack of listing gain potential leads us to recommend that investors approach the Readymix Construction Machinery IPO cautiously for long-term investment rather than short-term listing gains.

The Upcoming IPOs in this week and coming weeks are Chamunda Electricals, Ken Enterprises, Amwill Healthcare, Readymix Construction, Eleganz Interiors.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.

Join our Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Services

Readymix Construction Machinery IPO opens on 6 February - GMP, Dates, Lot Size & Share Price

Related News