Rappid Valves India shares list at nearly 41% premium on NSE SME; check details

Shares of small and medium enterprise (SME) Rappid Valves (India) Limited made a stellar trading debut on Monday, September 30, with the stock listing at a nearly 41% premium on the NSE Emerge platform.

The Rappid Valves stock opened the session at ₹312, up 40.5% compared to its initial public offering (IPO) price of ₹222 apiece. Within minutes of the opening of the session, the share price rose 5% to hit an intraday high of ₹327.6 apiece.

However, the stock pared some of its gains to trade 0.58% lower at ₹310.2 apiece at 10:21 am.

As the minimum bid quantity to apply for the Rappid Valves IPO was 600 shares, successful bidders who were allotted shares in the primary issue would have been sitting on listing gains of ₹54,000 (₹90 x 600) as soon as trading began in the stock.

Rappid Valves India IPO details

The ₹30.4-crore Rappid Valves India IPO garnered a strong response from investors when it was open for subscription from September 23 to September 25.

The issue was oversubscribed by more than 176 times during the three-day bidding period, with the company receiving bids for 16.03 crore shares compared with 9.1 lakh shares on offer.

Non-institutional investors (NII) led the demand, with the portion reserved for them being oversubscribed by 491.5 times. The retail investors’ category was overbid by more than 109 times, while the qualified institutional buyers’ portion was booked almost 56 times.

The Rappid Valves IPO was a 100% book-built issue made up entirely of a fresh issuance of 13.7 lakh shares. The price band of the IPO was set at ₹210 to ₹222 per share, with the lot size being 600 shares.

Ahead of the IPO's launch, Rappid Valves also raised ₹8.64 crore in its anchor investor round. The board, in its meeting held on September 20, finalised the allocation of 3.89 lakh shares to four anchor investors at a price of ₹222 per share.

The company said that it proposed to use the net proceeds from the issue to fund capital expenditures for the purchase of new plant, machinery, and software, renovation of the registered office and existing manufacturing unit, and repayment/prepayment of all or certain of its borrowings.

A portion of the funds would also be used to pursue inorganic growth initiatives through acquisitions and for general corporate purposes.

Rappid Valves India Limited

Founded in 2002, Rappid Valves India Limited is an engineering company that builds valve solutions across sectors as per Industry standards. Its factory manufactures and exports valves for critical applications in industries such as hydrocarbon/oil and gas (upstream, downstream and midstream) chemical, power, marine, mining and general industry.

The company offers various valves, including ball, gate, globe, butterfly, check, double block, filter, and marine valves.

The company’s revenue increased 123% to ₹36.6 crore in the financial year 2023-24 compared with ₹16.4 crore in the previous financial year 2022-23. Profit after tax (PAT) surged multifold to ₹4.1 crore in FY24 compared with ₹45.56 lakh in FY23.