On September 23, Rappid Valves (India) launched its SME initial public offering (IPO), which is scheduled to conclude on September 25. With this offering, the company hopes to raise Rs 30.41 crore, with a price range of Rs 210 to Rs 222 per share.
Subscription across categories
As of Monday, the first day of the bidding, at 2.30 pm, the issue had been subscribed 1.32 times, indicating a respectable level of demand for the IPO. Out of the 13.69 lakh shares on offer, bids for 13.04 lakh equity shares were received for the IPO.
Within an hour of the subscription opening, the retail investor segment was fully subscribed and had 1.17 bookings, whereas the non-institutional investors (NII) category had 0.38 bids. But as of right now, there have been no bids received for the Qualified Institutional Buyers (QIBs) quota.
IPO structure
With no offer for sale, the Rappid Valves IPO consists solely of a new 13.7 lakh share issuance.
#RappidValvesIPO is NOW OPEN! ️ Rappid Valves (India) is offering a ₹30.41 Cr IPO, available from 23rd Sept 2024 to 25th Sept 2024. Here’s the full breakdown:
— VENES (@VENESUC) September 23, 2024
IPO Size: ₹30.41 Cr (Fresh Issue)
Price Band: ₹210-₹222 per share
⚙️ Minimum Investment: ₹1,33,200 for…
Minimum bid
Retailers are required to apply for a minimum lot size of 600 shares, which equates to a Rs 1,33,600 investment. High net worth individuals (HNIs) are required to submit an application for a minimum of two lots, or 1,200 shares, with a combined value of Rs 2,66,400.
Listing timetable
On September 26, 2024, the allocation for the Rappid Valves IPO is anticipated to be completed. Concurrently, on Friday, September 27, shares will be credited to the designated allottees' Demat accounts, and refunds for investors who were not given shares will begin. On September 30, 2024, a Monday, the shares will be listed on the NSE SME platform.
Utilisation of IPO proceeds
The net proceeds from the issue will be put to use by the company for a number of things, such as financing capital expenditures for new machinery, software, and plant purchases, remodelling its registered office and current manufacturing facility, and paying down or prepaying some debt.
GMP (Grey market premium)
The grey market premium (GMP) for the IPO is currently Rs 0 per share, meaning that the issue price and expected listing price will be the same at Rs 222. Since September 16, there has been no change in the GMP.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in IPOs involves risks and potential volatility. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred by readers.