Rappid Valves India Limited made a strong stock market debut on September 20, listing at ₹312 on the NSE SME platform, which is over a 40% premium against its issue price of ₹222 per share. This listing, however, is slightly lower than the grey market expectations, where shares were trading at a 45% premium before the listing.
The IPO received significant attention, with the offer being subscribed 176 times over three days. Non-institutional investors showed immense interest, buying 491 times their allotted quota, while retail investors subscribed 109 times, and qualified institutional buyers subscribed 56 times of their portion.
Company Background & Offer Details
Incorporated in 2002, Rappid Valves India specializes in manufacturing various valve solutions, including ball, gate, globe, butterfly, check, double block, filter, and marine valves. The products cater to diverse requirements, with sizes ranging from 15mm to 600mm, and are made using ferrous and non-ferrous materials.
Utilization of Funds
The funds raised from the IPO will be used for multiple purposes:
- Capital expenditure to acquire a new plant, machinery, and software.
- Renovation of the company’s registered office and existing manufacturing unit.
- Repayment or prepayment of certain borrowings.
- Supporting inorganic growth through acquisitions.
- Covering general corporate expenses.
Rappid Valves India’s strong listing is another example of the significant investor interest in SME IPOs, showcasing the potential of emerging companies on the NSE SME platform
