Rexpro Enterprises Ipo Day 1 Nse Sme Issue Booked Nearly 2 Times On High Retail Demand; Check Offer Size, Price Band And More

Rexpro Enterprises IPO Day 1: NSE SME issue booked nearly 2 times on high retail demand; check offer size, price band and more

Rexpro Enterprises IPO Day 1: Strong Demand, Nearly 2 Times Booked on High Retail Interest

The initial public offering (IPO) of Rexpro Enterprises Ltd, a diversified product manufacturing company, witnessed strong demand on its opening day, January 22, 2025. The NSE SME issue was fully subscribed within hours, driven largely by robust retail participation. The IPO aims to raise ₹53.65 crore through a combination of fresh share issuance and an Offer for Sale (OFS).

IPO Performance on Day 1

By 3:20 pm on the first day, Rexpro Enterprises’ IPO was subscribed 1.89 times, according to data from NSE. Investors bid for 66.53 lakh shares, significantly exceeding the 35.14 lakh shares on offer.

  • Retail investors showed the most enthusiasm, oversubscribing their quota 3.28 times, bidding for 57.69 lakh shares against the allocated 17.57 lakh shares.
  • Non-Institutional Investors (NIIs), on the other hand, subscribed to only 50% of their portion, bidding for 8.84 lakh shares out of the 17.57 lakh shares allocated.

The IPO received approximately 6,100 applications, with a total bidding value of ₹96.46 crore. This indicates strong investor confidence, particularly among retail participants.


Rexpro Enterprises IPO: Key Details for Investors

  • Price Band: The IPO price has been fixed at ₹145 per share.
  • Offer Size: The issue comprises:
    • Fresh issuance of 32.5 lakh shares worth ₹47.13 crore.
    • An Offer for Sale (OFS) of 4.5 lakh shares, aggregating ₹6.53 crore.
  • Lot Size:
    • Retail investors can bid for a minimum of 1 lot (1,000 shares), requiring an investment of ₹1,45,000.
    • High Networth Individuals (HNIs) need to apply for at least 2 lots (2,000 shares), amounting to ₹2,90,000.
  • Lead Manager: Horizon Management Private Ltd is the book-running lead manager.
  • Registrar: Cameo Corporate Services Ltd is handling the IPO allotment and refund process.

IPO Timeline

  1. Subscription Period: January 22 to January 24, 2025.
  2. Allotment Finalization: Expected on Monday, January 27, 2025.
  3. Refunds Initiation: Scheduled for Tuesday, January 28, 2025.
  4. Demat Credit of Shares: Also set for January 28, 2025.
  5. Listing Date: Shares are expected to debut on the NSE SME Emerge platform on Wednesday, January 29, 2025.

About Rexpro Enterprises

Rexpro Enterprises is a diversified product manufacturer with a primary focus on furniture and fixtures for retail and institutional clients. Initially established as a one-stop solution for furniture and fixture needs of retailers, the company has since expanded its portfolio.

  • Clientele: Rexpro caters to multiple retail sectors, including fashion, lifestyle, electronics, grocery, beauty, and telecom. It has worked on standalone stores, kiosks, shop-in-shops, and displays for global brands and large Indian retailers.
  • Diversification: The company has also ventured into commercial and institutional furniture, servicing hospitals, offices, and government organizations.

Financial Performance

Rexpro Enterprises has demonstrated significant growth over the past few years:

  • FY24 Revenue: ₹83 crore, up from ₹62.89 crore in FY23.
  • FY24 Profit After Tax (PAT): ₹5.18 crore, a multifold increase from ₹63 lakh in FY23.
  • H1 FY25 Revenue: ₹49.56 crore, with a PAT of ₹4.08 crore.

This growth trajectory highlights the company’s ability to scale operations while maintaining profitability, positioning it as an attractive investment opportunity in the SME sector.


Use of IPO Proceeds

The proceeds from the IPO will be utilized for the following purposes:

  1. Factory Renovation: Upgrading infrastructure to enhance operational efficiency.
  2. Working Capital Requirements: Strengthening the company’s financial base to support expansion and meet day-to-day operational needs.
  3. Organic Growth: Investing in new product development and entering untapped markets.
  4. General Corporate Purposes: Supporting strategic initiatives and improving overall financial health.

Investor Sentiment

The overwhelming response from retail investors underscores the growing confidence in Rexpro Enterprises’ growth story. The company’s consistent financial performance, diversified offerings, and robust client base have made it a standout choice among SME IPOs.

While institutional participation remained subdued on Day 1, retail investors were eager to lock in their bids, reflecting optimism about the company’s future prospects. Analysts suggest that the focus on furniture manufacturing for diverse sectors, coupled with plans to modernize operations, positions Rexpro for long-term success.


Conclusion

The Rexpro Enterprises IPO opened on a strong note, driven by high retail demand and positive investor sentiment. With its diversified product portfolio, growing financials, and plans for expansion, the company is well-positioned to leverage the opportunities in the furniture manufacturing sector.

As the subscription window continues until January 24, investors are advised to evaluate the company’s fundamentals, growth potential, and the SME platform dynamics before making their decisions. With listing scheduled for January 29, all eyes will be on how Rexpro Enterprises performs on its debut and in the coming quarters.

Read more stock news on NiftyNews

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top