Readymix Construction Machinery Limited (RMX), established in Pune in 2008, is a prominent player in the construction machinery sector. The company manufactures and supplies a diverse range of machinery and equipment tailored to meet the evolving needs of the construction industry. As a book-built issue, Readymix Construction Machinery IPO is offering a total issue size of ₹37.66 crores, comprising 30.62 lakh fresh shares. The subscription period begins on February 6, 2025, and ends on February 10, 2025, with the listing scheduled for February 13, 2025.

Key Details of Readymix Construction Machinery IPO

The IPO price is set between ₹121 and ₹123 per equity share, with a total market capitalization of ₹134.78 crores at the upper price band. The lot size is 1,000 shares, and retail investors must invest a minimum of ₹1,23,000 for one lot. For high-net-worth individuals (HNIs), the minimum investment is ₹2,46,000 for two lots. The subscription period will offer investors an opportunity to apply for shares and participate in this public offering.

Grey Market Premium (GMP) of Readymix Construction Machinery IPO

As of February 7, 2025, the Grey Market Premium for Readymix Construction Machinery IPO stands at ₹0, indicating no speculative demand in the grey market. The GMP reflects that there is no major difference between the IPO price and the expected listing price, which implies that investors should not expect significant listing gains. The Grey Market Premium serves as an informational tool but should not be relied upon for making investment decisions.

IPO Subscription Status and Anchor Investors

The live subscription status as of February 7, 2025, shows that the IPO has been subscribed 1.36 times on the second day of the subscription period. Investors can track the subscription status on the NSE website in real-time to stay updated. Furthermore, Readymix Construction Machinery IPO raised ₹10.71 crores from Anchor Investors, who acquired 8,71,000 equity shares at ₹123 per share.

Objectives of Readymix Construction Machinery IPO

The company plans to utilize the net proceeds from the IPO for the following key purposes:

1. Repayment and/or pre-payment of borrowings - ₹5.25 crores.
2. Working capital requirements - ₹24.05 crores.
3. General corporate purposes - The remainder for business expansion and operational needs.

Financial Performance and IPO Valuation

Readymix Construction Machinery has demonstrated steady growth in its financials. The revenue from operations for the period ending December 31, 2024, was ₹3,550.02 lakh, a substantial increase from previous years. The company’s EBITDA was ₹311.74 lakh, with a Profit after Tax (PAT) of ₹104.41 lakh. The pre-issue EPS stands at ₹11.76, and the post-issue EPS is ₹8.47. The pre-issue P/E ratio is 10.46x, while the post-issue P/E ratio increases to 14.52x, which indicates a fully priced IPO in terms of its earnings.

Investment Recommendation for Readymix Construction Machinery IPO

Based on the company’s financial performance, IPO pricing, and grey market premium (which is ₹0), investors should approach this IPO cautiously. Given the low speculative interest and the fully priced valuation, it is recommended to avoid this IPO for listing gains. While the company has solid fundamentals, the P/E ratios and GMP suggest that the investment may not yield high short-term returns.

How to Check Readymix Construction Machinery IPO Allotment Status

The IPO allotment will be finalized by February 11, 2025, and can be checked on the registrar’s website. Investors can follow these steps to check the allotment status:

• Visit the IPO allotment status page.
• Select Readymix Construction Machinery IPO from the dropdown list.
• Enter the application number, PAN, or DP Client ID.
• Submit the details to view the allotment status.

The Upcoming IPOs in this week and coming weeks are PS Raj Steels, Chandan Healthcare, Ajax Engineering, Voler Car, Maxvolt Energy, Hexaware Technologies.

The Current active IPO are Eleganz Interiors, Readymix Construction, Solarium Green, Ken Enterprises, Amwill Healthcare.

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.