Rex Pipes and Cables SME
SME₹6.24 Cr issue
+2.69%
Listing gain over issue price
Issue size
₹6.24 Cr
1 lot at cut-off
₹1,04,000
Lot size
4,000shares
Open
28 Jul 2021
Close
02 Aug 2021
Allotment
05 Aug 2021
Listing
10 Aug 2021
Listing performance
Issue price
₹26
Listed at
₹26.70
Listing-day close
₹26.80
Latest price
—
Listing gain
+2.69%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Jul 2021 – 02 Aug 2021
- Listing date
- 10 Aug 2021
- Face value
- ₹10 per share
- Issue price
- ₹26 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹6.24 Cr
- Market cap at offer price
- ₹22.36 Cr
- Promoter holding
- 84.65% → 61.03% pre-issue → post-issue
- ISIN
- INE00D001018
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Navigant Corporate Advisors Ltd.
- Registered office
- F-69A, RIICO Industrial Area, Rajasthan
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,20,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹26
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,04,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,08,000 |
| S-HNI (max) | 9 | 36,000 | ₹9,36,000 |
| B-HNI (min) | 10 | 40,000 | ₹10,40,000 |
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.
Valuation and performance
Valuation at offer price
₹26 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹22.36 Cr |
About Rex Pipes and Cables SME
Rex Pipes and Cables Industries Limited, originally incorporated as Kaler Electricals Private Limited in 2002, is engaged in manufacturing and trading of uPVC pipes, HDPE pipes, PVC insulated electrical wires, cables, and fittings under the brand name 'REX'. The company also manufactures bus bodies under the brand 'Rex Coaches'. Operating from multiple manufacturing facilities in Rajasthan, the company serves agriculture, power, construction, and engineering sectors. The company has established itself as a quality manufacturer through continuous technology upgrading and modernization of manufacturing facilities.
Company Analysis
from RHPRex Pipes and Cables Industries manufactures and trades PVC pipes, HDPE pipes, electrical cables, and bus bodies across agriculture, power, construction, and engineering sectors.
Rex Pipes and Cables Industries Limited, originally incorporated as Kaler Electricals Private Limited in 2002, is engaged in manufacturing and trading of uPVC pipes, HDPE pipes, PVC insulated electrical wires, cables, and fittings under the brand name 'REX'. The company also manufactures bus bodies under the brand 'Rex Coaches'. Operating from multiple manufacturing facilities in Rajasthan, the company serves agriculture, power, construction, and engineering sectors. The company has established itself as a quality manufacturer through continuous technology upgrading and modernization of manufacturing facilities.
Plastic pipes and fittingsElectrical cables and wiresBus manufacturing and fabricationInfrastructure and construction materials
Objects of the Issue
- To part finance the requirement of Incremental Working Capital ₹450.00 Lacs p.21
- To meet General corporate purposes ₹144.00 Lacs p.21
- To meet the expenses of the Issue ₹30.00 Lacs p.21
- To part finance the requirement of Incremental Working Capital ₹450.00 lacs p.84
- To meet General corporate purposes ₹144.00 lacs p.84
- To meet the expenses of the Issue ₹30.00 lacs p.84
- General corporate purposes To be determined post-issue p.209
Issue Structure
- Total Issue
- ₹624.00 Lacs
- Fresh Issue
- 24,00,000 Equity Shares of face value of Rs. 10 each for cash at a price of Rs. 26/- per Equity Share
- Price Band
- ₹26/- per Equity Share (including a share premium of Rs. 16/-)
- Face Value
- Rs. 10 each
Business Model
The company earns revenue through manufacturing and trading of plastic pipes (uPVC and HDPE), electrical cables and wires, and bus bodies. Products are sold through a dealer and distributor network across various sectors including agriculture (irrigation), power distribution, construction (flexible house wires), and engineering (screened cables).
Business Segments
Manufacturing of insulated winding wire, 3 core flat cables and PVC & HDPE pipes for irrigation and agricultural applications.
Manufacturing of cables and low voltage power up to 1.1 KV in PVC categories meeting domestic and global standards.
Manufacturing of Flexible House wires sold through dealer and distributor network.
Manufacturing and supply of screened cables to semi-government sectors and government projects through distributors and dealers.
Manufacturing of bus bodies and complete vehicle bodies including city buses, inter-city coaches, school buses, executive buses, and commercial vehicles under the brand 'Rex Coaches'.
Manufacturing of electrical cables including winding wire, single core flexible home wires, and three-core flat cables for agriculture, power, construction, and engineering applications
Manufacturing of high-density polyethylene pipes for potable water supply, irrigation, gas transmission, industrial effluents, sewerage and drainage applications
Manufacturing of uPVC pipes and fittings for plumbing, pressure, agricultural, casing and drainage applications in domestic, commercial and industrial sectors
Manufacturing and fabrication of bus bodies including passenger buses, sleeper buses, school buses, luxury buses, vanity vans, motorhomes, and commercial containers
Retail sales of manufactured products
Manufacturing and sale of PVC pipes, cables, and related products
SWOT Analysis
Strengths
- • Established brand with two decades of market presence in pipes and cables(p.17)
- • Diversified product portfolio across multiple applications and customer segments(p.17)
- • Multiple manufacturing facilities equipped with modern infrastructure(p.17)
- • Established presence across agriculture, power, construction and engineering sectors(p.17)
- • Diversified product portfolio across pipes, cables, and bus manufacturing(p.109)
- • Strategically located manufacturing facilities with focus on quality(p.109)
- • Experienced promoters and well-trained employee base(p.109)
- • Strong brand legacy with 15+ years in pipes and cable segments(p.109)
- • Stringent quality assurance at every manufacturing stage(p.109)
- • Experienced management with deep industry expertise in pipes and cables manufacturing(p.146)
- • Established manufacturing facilities with significant capital investment(p.181)
- • Growing revenue track record with 6.79% year-on-year increase in FY2019(p.194)
- • ISO 9001:2015 Quality Management System certification(p.205)
- • No litigation, defaults or material regulatory issues(p.141)
- • Clean labor relations with non-unionized workforce(p.142)
Weaknesses
- • Several operating facilities are leased rather than owned, creating tenure risk(p.27)
- • History of negative operating cash flows affecting financial condition(p.28)
- • Heavy geographic concentration with 83% of revenue from Rajasthan only(p.28)
- • Significant dependence on small customer base with top 10 customers representing 43.96% of revenues(p.33)
- • Manufacturing plant capacity underutilized with declining utilization rates(p.30)
- • High debt burden with secured and unsecured borrowings of Rs. 2,107.64 lacs as of January 31, 2021(p.32)
- • No long-term contracts with customers or suppliers, creating demand and supply uncertainty(p.29)
- • Promoter group entities continue to control majority shareholding post-IPO at 61.03%(p.39)
- • Heavy dependence on suppliers for right quality raw materials(p.125)
- • Dependent upon growth in industry(p.125)
- • Geographic concentration of revenue in Rajasthan region(p.109)
- • Relatively low capacity utilization in cable and HDPE pipe segments(p.122)
- • Significant dependence on few customers limiting revenue diversification(p.196)
- • High leverage with debt-to-equity ratio of 0.86 for long-term and 0.98 for short-term debt(p.196)
- • Significant dependence on few suppliers for raw materials(p.196)
- • Declining profitability with PAT declining from 3.62% to 2.27% margin(p.191)
- • Reduced operational income with 14.01% decline in FY2020(p.192)
Opportunities
- • Growing Indian infrastructure development and urbanization driving pipes demand(p.20)
- • PVC pipes and fittings showing strong growth with 73% of PVC consumption in India vs. 43% globally(p.20)
- • Rising preference for plastic pipes over traditional GI pipes due to cost and durability advantages(p.20)
- • Government initiatives including plastic parks and water management projects creating market opportunities(p.19)
- • Expected growth in electrical machinery sector with installed power capacity projected to reach 350 GW by 2022(p.19)
- • Geographic expansion opportunity to diversify beyond concentrated Rajasthan market(p.28)
- • IPO proceeds to fund working capital and general corporate purposes for business expansion(p.21)
- • Expansion into unexplored rural markets(p.125)
- • Growing demand for plastic pipes driven by infrastructure and agriculture(p.105)
- • Capital raising through listing for expansion and new business ventures(p.125)
- • Government initiatives supporting plastic pipe usage in infrastructure(p.105)
- • Increasing geographic expansion to new domestic markets(p.123)
- • Expansion through capacity utilization and new market penetration(p.196)
- • Industry growth in pipes and cables sector in India(p.196)
- • Access to capital markets through IPO for growth financing(p.223)
- • Potential for backward integration given supplier concentration risk(p.196)
Threats
- • High fragmentation and intense competition in pipes and cables industry(p.38)
- • Exposure to raw material price fluctuations without long-term supply agreements(p.32)
- • Dependence on unreliable power and water supply for manufacturing operations(p.32)
- • Potential regulatory bans on plastic products could eliminate core business(p.31)
- • COVID-19 pandemic creating ongoing operational and economic uncertainties(p.42)
- • Economic slowdown in India could significantly impact demand for products(p.41)
- • Foreign currency exchange rate fluctuations affecting imported raw materials costs(p.33)
- • Transportation disruptions and increased freight costs affecting supply chain(p.32)
- • Industrial hazards and workplace accidents could disrupt manufacturing operations(p.30)
- • Susceptibility to changes in government policies affecting financials(p.125)
- • Fluctuations in raw material prices(p.125)
- • No entry barriers attracting new competitors to the industry(p.125)
- • Intense competitive pressure from existing and new players(p.125)
- • Global economic slowdown impacting business(p.125)
- • Rising labor wages(p.125)
- • Intense competition from organized and unorganized manufacturers(p.196)
- • Exposure to raw material price volatility affecting margins(p.195)
- • Vulnerability to general economic slowdown and commodity price volatility(p.195)
- • Inability to pass on cost increases to customers(p.195)
- • Regulatory changes and compliance requirements(p.189)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Sharwan Kumar Kaler | Promoter | 29.72% | 21.42% |
| Mrs. Sohani Devi | Promoter | 13.59% | 9.80% |
| Mr. Bajrang Lal Kaler | Promoter Group | 11.12% | 8.01% |
| M/s Sharwan Kumar Kaler HUF | Promoter Group | 11.69% | 8.43% |
| Mr. Raghunath Singh Kaler | Promoter Group | 8.33% | 6.00% |
| Mrs. Dhanni Devi Kaler | Promoter Group | 7.59% | 5.47% |
| Mrs. Kohil Devi | Promoter Group | 2.62% | 1.89% |
| Mr. Sharwan Kumar Kaler | Promoter | 29.72% | 21.42% |
| Mrs. Sohani Devi | Promoter | 13.59% | 9.80% |
| Mr. Bajrang Lal Kaler | Promoter Group | 11.12% | 8.01% |
| M/s Sharwan Kumar Kaler HUF | Promoter Group | 11.69% | 8.43% |
| Mr. Raghunath Singh Kaler | Promoter Group | 8.33% | 6.00% |
| Mrs. Dhanni Devi Kaler | Promoter Group | 7.59% | 5.47% |
| Mrs. Kohil Devi | Promoter Group | 2.62% | 1.89% |
| Mr. Sharwan Kumar Kaler | Promoter | 29.72% | — |
| Mrs. Sohani Devi | Promoter | 13.59% | — |
Leadership
Mr. Sharwan Kumar Kaler · Managing Director
Mrs. Sohani Devi · Whole Time Director
Mr. Rajendra Kaler · Whole Time Director
Mr. Jitendra Kumar Kaler · Non Executive And Non Independent Director
Mr. Subhash Meel · Non Executive And Independent Director
Mr. Anil Kumar · Non Executive And Independent Director
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.
Rex Pipes and Cables SME IPO FAQs
What is the lot size of Rex Pipes and Cables SME IPO?
The minimum lot size of Rex Pipes and Cables SME IPO is 4,000 shares. One lot costs ₹1,04,000 at the cut-off price.
When does Rex Pipes and Cables SME IPO open and close?
Rex Pipes and Cables SME IPO opened for subscription on 28 Jul 2021 and closed on 02 Aug 2021.
What is the listing date of Rex Pipes and Cables SME IPO?
Rex Pipes and Cables SME IPO listed on 10 Aug 2021.