Rexpro Enterprises shares hit 5% lower circuit after listing at 19% discount on NSE SME

Furniture and fixtures manufacturer Rexpro Enterprises made a weak debut on the NSE SME platform, Emerge, on Wednesday with its shares listing a discount of over 19%.

Shares of the company started trading at ₹117 per piece against the issue price of ₹145 apiece, reflecting losses of 19.62% over the issue price.

After a weak debut, the stock fell further by 5% to hit the lower circuit limit of ₹111.15 per share.

More than 2.66 lakh equity shares changed hands on the bourse. The total turnover stood at ₹3.11 crore. The market valuation of the company reached ₹124.56 crore.

At the listing price of ₹117 per share, the value of a single lot of shares bagged by investors in the IPO share allotment stood at ₹1,17,000 (₹117x1,000).

IPO investors would have faced a loss of ₹28,000 per lot as the minimum investment in a single lot was ₹ 1,45,000 (₹145x1,000).

Rexpro Enterprises Ltd is a diversified product manufacturing company. It started as a one-stop solution for furniture and fixture requirements for retailers and now operates across retail segments such as lifestyle, fashion, electronics, beauty, telecom, and grocery, among others.

The company has multi-material manufacturing capability for customised products and has made complete standalone stores, kiosks, shop-in-shops, and displays for global brands and large Indian retailers.

The company also undertakes turnkey projects for end-to-end solutions which include designing, manufacturing and installing all products required and offers such services across India. Its manufacturing is all based out of Vasai, Maharashtra.

Rexpro Enterprises Ltd raised ₹53.65 crore through its initial public offering (IPO) last week. The issue comprising a fresh issue of 32.5 lakh shares and an OFS of 4.5 lakh shares was open for subscription from January 22 to 24 on NSE.

At the close of the bidding on January 24, the furniture maker garnered bids for more than 6.22 crore equity shares compared to 35.14 lakh equity shares on offer. The SME IPO was subscribed 18.23 times.

The retail investors’ portion was booked 27 times. The NIIs segment was booked 8.32 times.

The retail investors submitted bids for over 4.76 crore shares against 17.57 lakh shares on offer. Non-Institutional Investors (NIIs) submitted bids for more than 1.46 crore shares compared to 17.57 lakh shares on offer.

The company has proposed to utilise ₹25 crore of IPO proceeds for purchasing equipment and renovation of its factory.

The company will utilise ₹10 crore for meeting working capital requirements. The company has earmarked ₹3.52 crore for pursuing inorganic growth.

It has stated that it is on the lookout for small companies or start-ups working in the customised furniture and fixture or the infrastructure space for acquisition within India for part or full equity acquisition of such a company. It plans to acquire the company or enter a joint venture through infusion of equity.

Rexpro Enterprises had a profit after tax of ₹4.08 crore for the first six months (April-September) of FY2024-25. Its income was at ₹49.56 crore in the period.

Its profit after tax stood at ₹5.18 crore in FY 2023-24 compared to ₹63 lakh in FY 2022-23. Income was at ₹83 crore in FY 2023-24 compared to ₹62.89 crore in FY 2022-23.