Rexpro Enterprises Limited, a well-established manufacturer specializing in furniture and fixtures, is set to raise ₹53.65 crore through its Initial Public Offering (IPO). The company caters to diverse sectors, including retail, commercial, industrial, infrastructure, and warehousing, with a notable presence in sound barriers and double doors for metro stations.

The IPO opens on January 22, 2025, and closes on January 24, 2025. The share price band is set at ₹145 per equity share, with a market capitalization of ₹162.49 crore at the IPO price. The offering consists of a Fresh Issue of 32.50 lakh shares (worth ₹47.13 crore) and an Offer for Sale of 4.50 lakh shares (worth ₹6.53 crore). The lot size for the IPO is 1,000 shares, requiring a minimum investment of ₹1,45,000 for retail investors, while High-Net-Worth Individuals (HNIs) need to invest in two lots, totaling ₹2,90,000.

Key IPO Dates:

• IPO Subscription Period: January 22-24, 2025
• IPO Allotment Date: January 27, 2025
• Tentative Listing Date: January 29, 2025

The IPO is managed by Horizon Management Private Limited as the book running lead manager, with Cameo Corporate Services Limited as the registrar. The Market Maker for the IPO is Giriraj Stock Broking Private Limited.

Rexpro Enterprises IPO Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Rexpro Enterprises stands at ₹21, suggesting a potential listing gain of 14.48% based on the current price of ₹145 per share. However, trading in the grey market is speculative, and GMP figures should be taken as informational and educational only.

Financial Performance and Valuation

Rexpro Enterprises has shown steady financial growth over the years:

• Revenue from Operations: ₹4,956.47 lakh (Sep 2024), ₹8,301.10 lakh (FY 2024)
• Profit after Tax (PAT): ₹408.27 lakh (Sep 2024), ₹518.34 lakh (FY 2024)
• EBITDA: ₹627.96 lakh (Sep 2024), ₹808.55 lakh (FY 2024)

The Pre-issue EPS stands at ₹5.69, with a Post-issue EPS of ₹4.63 for FY24. The Pre-issue P/E ratio is 25.48x, while the Post-issue P/E ratio is 31.35x, which is lower than the industry average of 40x.

Use of Proceeds

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

1. ₹2,500.00 lakh for purchase of equipment and factory renovation.
2. ₹1,000.00 lakh for funding working capital requirements.
3. ₹352.00 lakh for pursuing inorganic growth.
4. ₹584.00 lakh for general corporate purposes.

Investment Outlook

With steady financial performance and a GMP indicating potential listing gains, the Rexpro Enterprises IPO appears to be a solid opportunity for risky investors seeking listing gains. The company has a strong market presence in key sectors, with established clients such as Shoppers Stop, Samsung (One RX India), Hindustan Unilever, and Marks & Spencer Reliance.

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