Rappid Valves India
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Sep 2024 – 25 Sep 2024
- Listing date
- 30 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹222 per share
- Lot size
- 600 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹30.41 Cr
- Market cap at offer price
- ₹115 Cr
- Promoter holding
- 69.46% → 51.13% pre-issue → post-issue
- ISIN
- INE0MVO01012
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- Genesis Industrial Complex, Plot No.30, Village Kolgaon, Palghar (East), Thane, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 3,89,400 | — | — |
| Market maker | 69,600 | — | — |
Application size
Minimum 600 shares per lot, in multiples, at ₹222
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 600 | ₹1,33,200 |
| S-HNI (min) | 2 | 1,200 | ₹2,66,400 |
| S-HNI (max) | 7 | 4,200 | ₹9,32,400 |
| B-HNI (min) | 8 | 4,800 | ₹10,65,600 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 10.81 | 7.96 |
| P/E (×) | 20.54 | 27.89 |
| Price to book (×) | 24.89 | — |
| Market cap | — | ₹115 Cr |
Key performance indicators
- Return on net worth
- 33.82%
- ROCE
- 29.88%
- Debt / equity
- 0.90
- PAT margin
- 11.32%
- NAV per share
- ₹34.72
- Price to book
- 24.89
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Rappid Valves India
Rappid Valves (India) Limited, originally incorporated as Rapid Valves (India) Private Limited on May 24, 2002, converted to public limited company status in June 2024. The company is engaged in the design, manufacturing and supply of precision valve solutions using ferrous and non-ferrous materials, with product sizes ranging from 15mm to 600mm. The company serves diverse industries including ethanol & breweries, marine allied, shipbuilding & repair, EPC contractors, OEMs, fire safety, chemicals & process, and steel sectors. Revenue grew significantly from ₹1,643.42 lakhs (FY2023) to ₹3,660.06 lakhs (FY2024), with profit after tax of ₹413.27 lakhs in FY2024. The company manufactures valves to international standards and has obtained quality certifications including ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, IBR approval and API607 fire safe design certification.
Company Analysis
from RHPRappid Valves (India) Limited is an engineering company that manufactures a diverse range of industrial valve solutions including ball, gate, globe, butterfly, check, double block, strainer and marine valves for applications across multiple industries.
Rappid Valves (India) Limited, originally incorporated as Rapid Valves (India) Private Limited on May 24, 2002, converted to public limited company status in June 2024. The company is engaged in the design, manufacturing and supply of precision valve solutions using ferrous and non-ferrous materials, with product sizes ranging from 15mm to 600mm. The company serves diverse industries including ethanol & breweries, marine allied, shipbuilding & repair, EPC contractors, OEMs, fire safety, chemicals & process, and steel sectors. Revenue grew significantly from ₹1,643.42 lakhs (FY2023) to ₹3,660.06 lakhs (FY2024), with profit after tax of ₹413.27 lakhs in FY2024. The company manufactures valves to international standards and has obtained quality certifications including ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, IBR approval and API607 fire safe design certification.
Objects of the Issue
- Funding the Capital expenditure for purchase of new Plant and Machineries and Software by our Company ₹673.11 lakhs p.28
- Expenditure for renovation of registered office and existing manufacturing unit ₹38.88 lakhs p.28
- Repayment/prepayment of all or certain of our borrowings availed of by our Company ₹1,050.00 lakhs p.28
- Pursuing inorganic growth initiatives through acquisitions ₹400.00 lakhs p.28
- General Corporate Purpose [●] p.28
- Funding the Capital expenditure for purchase of Plant and Machineries and Software by our Company ₹673.11 lakhs p.100
- Expenditure for renovation of registered office and existing manufacturing unit ₹38.88 lakhs p.100
- Repayment/prepayment of all or certain of our borrowings availed of by our Company ₹1,050.00 lakhs p.100
- Pursuing inorganic growth initiatives through acquisitions ₹400.00 lakhs p.100
- General corporate purposes p.100
- Purchase of Plant and Machineries p.170
- Not stated in this document part
- Not specified in this part of the document
Issue Structure
- Total Issue
- Up to 13,69,800 Equity Shares of ₹10/- each aggregating to ₹[●] Lakhs
- Fresh Issue
- Up to 13,69,800 Equity Shares of ₹10/- each for cash at a price of ₹[●] per Equity share aggregating to ₹[●] Lakhs
- Offer for Sale
- Not Applicable as the entire issue constitutes fresh issue of equity shares
- Price Band
- ₹[●] to ₹[●]
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10/- per Equity Share
Business Model
The company generates revenue through manufacturing and sale of industrial valve solutions across multiple product lines (ball valves, gate valves, globe valves, butterfly valves, check valves, double block valves, strainer valves and marine valves). The top 5 customers accounted for 71.88% of revenue in FY2024. Raw materials (metal castings) represent 96.50% of total expenses, sourced 100% from domestic suppliers in Gujarat and Maharashtra. The company operates on a job-order basis without long-term customer contracts, relying instead on purchase orders. Manufacturing facility is located in Palghar, Thane, Maharashtra.
Business Segments
SWOT Analysis
- • Established relationships with customers(p.114)
- • Diverse product portfolio(p.114)
- • Strong market presence in marine industry(p.114)
- • Experienced promoter leadership(p.114)
- • Effective marketing capabilities(p.114)
- • Experienced management with industry expertise(p.151)
- • Long-standing customer and supplier relationships(p.151)
- • Strong presence in marine sector with specialized expertise(p.151)
- • Quality certifications and approvals(p.173)
- • Strong revenue and profitability growth(p.153)
- • Improved capacity utilization and automation(p.171)
- • Negative operating cash flows in past years(p.34)
- • High raw material cost dependency(p.35)
- • Extreme customer concentration(p.36)
- • Outstanding litigations against company and promoters(p.29)
- • Heavy geographic concentration of raw material sourcing(p.38)
- • Significant geographic concentration of revenue(p.38)
- • History of regulatory non-compliance and missing corporate records(p.40)
- • Past delays in statutory filings(p.40)
- • High debt-to-equity ratio in prior years(p.47)
- • Unregistered brand name(p.48)
- • Litigations against promoter group members(p.39)
- • High debt burden relative to equity(p.52)
- • Dependence on director and promoter personal guarantees for debt facilities(p.53)
- • Concentrated promoter ownership limiting external shareholder influence(p.52)
- • Unidentified use of general corporate purpose funds(p.52)
- • Vulnerability to customer order cancellations and delays(p.53)
- • Dependence on single promoter(p.153)
- • Limited financial resources for capital investment(p.153)
- • Intellectual property protection risks(p.153)
- • Reliance on conventional manufacturing equipment(p.171)
- • High customer concentration(p.162)
- • Expansion of capital expenditure and manufacturing capacity(p.42)
- • Strategic acquisitions and inorganic growth(p.43)
- • Revenue growth in marine and allied industries(p.37)
- • Debt reduction to improve financial flexibility(p.47)
- • Diversification beyond ethanol and breweries sector(p.37)
- • Expansion of production capacity to meet industry demand(p.102)
- • Strategic acquisition and inorganic growth initiatives(p.110)
- • Enhancement of brand image through office and facility renovation(p.107)
- • Debt reduction and improved financial ratios(p.108)
- • Public listing benefits and market visibility(p.100)
- • Market leadership potential in marine valves(p.153)
- • Geographical expansion through new sales offices(p.152)
- • Sector portfolio diversification(p.153)
- • Technology upgradation and automation(p.171)
- • Growing demand from power and oil & gas sectors(p.145)
- • Expanding valve market in Asia-Pacific region(p.143)
- • Raw material price volatility(p.35)
- • Global valve industry overcapacity(p.42)
- • Customer cyclicality and demand fluctuations(p.38)
- • Intense competition from larger and established players(p.48)
- • Pricing pressure from customers(p.45)
- • Foreign exchange fluctuations(p.46)
- • Supply chain disruptions and transportation risks(p.46)
- • Regulatory and compliance risks(p.40)
- • Power and electricity supply risks(p.51)
- • Slowdown in Indian economic growth affecting demand(p.57)
- • Rising inflation and inability to pass costs to customers(p.60)
- • IT systems and manufacturing automation disruption(p.54)
- • Changing regulatory environment and compliance requirements(p.60)
- • Natural disasters and health crises disrupting operations(p.59)
- • Global financial instability affecting Indian markets(p.58)
- • Foreign investment restrictions limiting investor base(p.61)
- • Fluctuations in metal market prices(p.153)
- • Government policy changes affecting business(p.153)
- • Import competition from foreign manufacturers(p.153)
- • High maintenance and regulatory compliance costs(p.142)
- • Concentration risk in raw material suppliers(p.163)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Gaurav Vijay Dalal | Promoter | 64.55% | 47.52% |
| Mr. Vijay Laldas Dalal | Promoter Group | 4.91% | 3.61% |
| Mr. Gaurav Vijay Dalal | Promoter | 64.55% | 47.52% |
| Mr. Vijay Laldas Dalal | Promoter Group | 4.91% | 3.61% |
| Mr. Gaurav Vijay Dalal | Promoter | — | — |
| Gaurav Vijay Dalal | Promoter | 64.55% | — |
| Mr. Gaurav Dalal | Promoter/Chairman & Managing Director | — | — |
| Mrs. Mansi Gaurav Dalal | Promoter/Non-Executive Director (Resigned w.e.f. 27th June, 2024) | — | — |
| Mr. Vijay Dalal | Promoter/Director (Resigned w.e.f. 17th April, 2024) | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.