Rexpro Enterprises is a diversified product manufacturing company based in Vashi, Maharashtra. Established as a private limited company in 2012, it transitioned to a public limited company in 2024. The company is renowned for its in-house manufacturing capabilities, catering to sectors such as retail, commercial, industrial, and infrastructure. Key products include racks, cabinets, trolleys, sound barriers, and double doors for metro stations.

Rexpro has earned the trust of major clients, including Shoppers Stop Limited, Samsung, Hindustan Unilever, Marks & Spencer Reliance India Private Limited, Lenskart, and Godrej & Boyce Mfg. Co. Ltd.

IPO Details
Rexpro Enterprises is offering a fixed-price issue amounting to ₹ 53.65 Crores. This consists of a fresh issue of 32.50 lakh shares worth ₹ 47.13 Crores and an offer for sale (OFS) of 4.50 lakh shares totaling ₹ 6.53 Crores. The price band is set at ₹ 145 per share, and the lot size is 1,000 shares. The subscription period is from January 22, 2025, to January 24, 2025. The allotment date is January 27, 2025, and the listing date on the NSE SME is tentatively set for January 29, 2025.

Grey Market Premium (GMP)
As of January 20, 2025, the Grey Market Premium (GMP) for the Rexpro Enterprises IPO is ₹ 21, suggesting a potential 14.48% gain at listing. While GMP reflects market sentiment, it is based on unregulated trading and does not guarantee future listing performance.

IPO Subscription Status
The IPO has seen substantial demand, with the live subscription status showing that the IPO was subscribed 16.88 times as of 7:00 PM on January 24, 2025. This indicates strong investor interest and bodes well for a successful listing.

Financial Performance and Metrics
Rexpro Enterprises has demonstrated solid growth in recent years, with the revenues for the year ending September 30, 2024, reaching ₹ 4,956.47 lakh, compared to ₹ 8,301.10 lakh in FY 2024. The company has achieved steady profitability, as shown by its EBITDA and Profit After Tax (PAT) figures, which reflect strong operational efficiencies.

• Pre-issue EPS stands at ₹ 5.69, with a post-issue EPS of ₹ 4.63 for FY24.
• P/E ratio (pre-issue) is 25.48x, and post-issue P/E ratio stands at 31.35x, which is lower than the industry P/E ratio of 40x.
• ROCE for FY24 is 62.21%, while ROE stands at 56.24%, suggesting high capital efficiency and profitability.

Utilization of IPO Proceeds
The funds raised from the IPO will be allocated to the following purposes:

1. ₹ 25 Crores for purchase of equipment and renovation of the factory.
2. ₹ 10 Crores for working capital needs.
3. ₹ 3.52 Crores to pursue inorganic growth opportunities.
4. ₹ 5.84 Crores for general corporate purposes.

Why Invest in the Rexpro Enterprises IPO?
Rexpro Enterprises presents an attractive investment opportunity in the manufacturing sector, specifically in the furniture and fixtures market. The company’s solid financials, steady growth, and strategic use of IPO proceeds make it a potential high-growth player. Furthermore, the positive Grey Market Premium and strong subscription numbers are indicative of investor confidence in the company’s future prospects.

Given its fairly priced IPO, steady growth metrics, and diverse client base, Rexpro Enterprises appears to be a promising investment for those seeking both short-term gains and long-term growth in a high-demand manufacturing sector.

Conclusion

With a strong GMP and positive subscription status, the Rexpro Enterprises IPO is a good investment opportunity, especially for risk-tolerant investors. The company’s proven track record, solid financials, and growth prospects in the furniture and infrastructure sectors suggest that it could offer both listing gains and long-term value.

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