Rexpro Enterprises Limited, an established manufacturer of furniture and fixtures, is set to launch its IPO, offering 32.50 lakh fresh shares worth ₹47.13 Crores. The IPO opens on January 22, 2025, and closes on January 24, 2025, with a price band of ₹145 per equity share. At this price, the company's market capitalization is expected to reach ₹162.49 Crores. The subscription details and market dynamics show strong interest from retail and institutional investors, especially those involved in the infrastructure sector.

Company Overview
Rexpro Enterprises, headquartered in Vashi, Maharashtra, has earned a reputation for in-house manufacturing of products like racks, cabinets, trolleys, sound barriers, and high-precision double doors for metro stations. Serving prominent clients such as Shoppers Stop, Hindustan Unilever, and Godrej & Boyce, the company caters to industries spanning retail, commercial, industrial, infrastructure, and warehousing.

With over 10 years of expertise, the management team, led by Premal Niranjan Shah, aims to further the company’s footprint in the manufacturing sector.

IPO Details
The Rexpro Enterprises IPO consists of two components: a Fresh Issue of 32.50 lakh shares valued at ₹47.13 Crores and an Offer for Sale of 4.50 lakh shares amounting to ₹6.53 Crores. The lot size for this IPO is set at 1,000 shares, requiring a minimum investment of ₹1,45,000 for retail investors. High-Net-Worth Individuals (HNIs) must invest ₹2,90,000 for two lots.

Financial Performance
Rexpro has exhibited steady growth in revenues, with revenues for the period ending September 30, 2024, amounting to ₹4,956.47 Lakh, reflecting an upward trend over the past few years. The EBITDA and Profit after Tax (PAT) for FY24 also indicate improving financial stability. The company's EPS for FY24 stands at ₹5.69 (pre-issue), and ₹4.63 (post-issue), which suggests favorable valuations when compared to industry peers.

Grey Market Premium (GMP) and Expected Listing Gains
As of January 22, 2025, the GMP for the Rexpro Enterprises IPO stands at ₹21, indicating a 14.48% premium over the issue price of ₹145. This suggests strong investor confidence, with expected listing gains of up to 14.48% based on current market trends. However, since GMP is influenced by market sentiment and unorganized trading, it cannot guarantee the final listing price.

Subscription Status and Allotment
As of 5:00 PM on January 22, 2025, the IPO has been subscribed 2.62 times, indicating robust demand. Investors can check the IPO allotment status from January 27, 2025, on the registrar's website by entering their application number, PAN, or DP Client ID.

Objectives of the IPO
The funds raised from the IPO will be utilized for several key initiatives:

1. ₹2,500 Lakh will be used for purchasing new equipment and renovating the manufacturing facility.
2. ₹1,000 Lakh will support working capital requirements.
3. ₹352 Lakh will be allocated to inorganic growth opportunities.
4. ₹584 Lakh will fund general corporate purposes, enhancing the company’s overall operations.

Investment Outlook
With a fairly priced IPO and an attractive GMP, Rexpro Enterprises presents an opportunity for investors looking for exposure to the furniture manufacturing and infrastructure sectors. Despite being a relatively small issue, the company’s strong client base and diverse product offerings suggest good long-term growth potential.

Recommendation: For investors with a risk appetite, particularly those seeking listing gains, the Rexpro Enterprises IPO could be a worthwhile consideration. The company’s promising financials and growth strategies make it a potential addition to your portfolio.

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