Rex Sealing and Packing Industries SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Dec 2022 – 04 Jan 2023
- Listing date
- 12 Jan 2023
- Face value
- ₹10 per share
- Issue price
- ₹135 per share
- Lot size
- 1,000 shares
- Total issue size
- ₹8.09 Cr
- Market cap at offer price
- ₹29.97 Cr
- Promoter holding
- 99.99% → 73.02% pre-issue → post-issue
- ISIN
- INE0MFT01014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- A-207, 2nd Floor, Plot No.711 A, Byculla Services Industries, D K Road, Ghodapdeo, Byculla (East), 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 | 0 | — | — |
| Market maker | 33,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹135
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 8,000 | ₹10,80,000 |
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.
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 (₹) | 2.85 | — |
| P/E (×) | 47.37 | — |
| Market cap | — | ₹29.97 Cr |
Key performance indicators
- Return on net worth
- 6.63%
- ROCE
- 6.77%
- Debt / equity
- 0.46
- PAT margin
- 3.00%
- EBITDA margin
- 6.88%
- NAV per share
- ₹42.93
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Rex Sealing and Packing Industries SME
Rex Sealing and Packing Industries Limited was incorporated on August 10, 2005, and converted to a public limited company in 2022. The company is an ISO 9001 & 14001 certified manufacturer and exporter of sealing, packing, and insulation products including jointing sheets, fabric expansion joints, gland packing & ropes, and high temperature resistant textiles. All products are manufactured in-house at manufacturing facilities with a dedicated in-house Research & Development Laboratory. The company caters to both domestic and international markets, with operations limited to Gulf and Middle East countries for exports.
Company Analysis
from RHPRex Sealing and Packing Industries Limited manufactures and exports sealing, packing, and insulation products for the industrial gaskets and seals industry.
Rex Sealing and Packing Industries Limited was incorporated on August 10, 2005, and converted to a public limited company in 2022. The company is an ISO 9001 & 14001 certified manufacturer and exporter of sealing, packing, and insulation products including jointing sheets, fabric expansion joints, gland packing & ropes, and high temperature resistant textiles. All products are manufactured in-house at manufacturing facilities with a dedicated in-house Research & Development Laboratory. The company caters to both domestic and international markets, with operations limited to Gulf and Middle East countries for exports.
Objects of the Issue
- Gross Proceeds of the Fresh Issue ₹405.00 Lakhs p.20
- Issue related Expenses ₹39.15 Lakhs p.20
- Net Proceeds of the Fresh Issue ₹365.85 Lakhs p.20
- Funding Working Capital Requirement ₹278.48 lakhs p.60
- General Corporate Purpose ₹87.37 lakhs p.60
- Funding for setting up an additional manufacturing facility p.144
Issue Structure
- Total Issue
- ₹808.65 Lakhs (5,99,000 Equity Shares at ₹135 per share)
- Fresh Issue
- ₹405.00 Lakhs (3,00,000 Equity Shares)
- Offer for Sale
- ₹403.65 Lakhs (2,99,000 Equity Shares)
- Price Band
- ₹135 per Equity Share
- Lot Size
- 1,000 Equity Shares and in multiples of 1,000 thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and sells sealing, packing, and insulation products to customers in both domestic and international markets. Revenue is generated from the sale of these products. As of June 30, 2022, cost of material consumed represented 53.30% of total revenue, indicating a product manufacturing model with significant raw material costs.
Business Segments
SWOT Analysis
- • ISO certified manufacturer with in-house R&D and testing(p.19)
- • Established presence in growing sealing and gaskets market(p.19)
- • Exports to Gulf and Middle East markets(p.19)
- • Established manufacturing capability with in-house R&D and quality certifications(p.76)
- • Diversified product portfolio across multiple end-user industries(p.78)
- • Long-standing customer relationships providing competitive advantage(p.78)
- • Experienced management team with over two decades of industry experience(p.76)
- • Continued operations during COVID-19 by serving essential industries(p.77)
- • Diversified product portfolio across multiple end-user industries(p.145)
- • Quality certifications and robust quality management systems(p.145)
- • Experienced management team with long industry tenure(p.145)
- • Long-term customer relationships and repeat business(p.145)
- • In-house R&D capability for innovation and cost improvements(p.146)
- • Export presence in international markets(p.146)
- • No long-term agreements with suppliers(p.25)
- • High dependence on few major customers(p.25)
- • Significant indebtedness with secured charges on assets(p.29)
- • Underutilized installed manufacturing capacity(p.29)
- • Pending possession of MIDC plot despite capital advance paid(p.29)
- • Fire NOC not obtained for manufacturing unit(p.24)
- • Audit qualifications on raw material and inventory disclosures(p.20)
- • Related party transactions and conflict of interest risks(p.26)
- • Reliance on third-party transportation with no long-term contracts(p.24)
- • Key person dependence on Promoters(p.27)
- • Contingent liabilities pending resolution(p.28)
- • Outstanding tax litigations(p.24)
- • Working capital intensive business requiring substantial liquid funds(p.79)
- • Moderate EBITDA margins showing profitability challenges(p.66)
- • Declining export revenues indicating reduced international market penetration(p.77)
- • Modest installed capacity utilization rates across product lines(p.87)
- • High concentration of revenue among top customers(p.146)
- • Significant reliance on related party loans(p.131)
- • Working capital tied up in inventories and receivables(p.122)
- • Delay in obtaining physical possession of planned expansion land(p.120)
- • Pending indirect tax demands and contingent liabilities(p.136)
- • Growing domestic and global gaskets and seals market(p.19)
- • Advanced materials and critical application demand drivers(p.19)
- • Growth in seals and gasket segments(p.19)
- • Growth in Indian industrial gaskets market expected at 6% CAGR through 2027(p.74)
- • Expansion of manufacturing capacity with new asbestos-free gasket facility(p.76)
- • Growing demand for advanced sealing solutions in automotive and industrial sectors(p.73)
- • Increased industrialization and urbanization driving demand for industrial gaskets in India(p.74)
- • Government push for Make in India benefiting manufacturing sector(p.74)
- • Expansion into new markets via Ambernath manufacturing facility(p.144)
- • Growth in demand across multiple industrial sectors(p.144)
- • Export market expansion to Gulf and Middle East regions(p.145)
- • Regulatory and licensing compliance risks for operations(p.24)
- • Raw material price volatility and cost exposure(p.26)
- • Supply chain disruptions from supplier discontinuation(p.26)
- • Power supply disruptions affecting production(p.28)
- • Labor cost inflation and wage pressure(p.28)
- • Competitor overlap with Promoter Group company(p.27)
- • Currency and FX risks for export revenues(p.19)
- • Industrial accidents and workplace safety risks(p.28)
- • Environmental and pollution compliance costs(p.32)
- • Changes in government tax and regulatory policies(p.34)
- • Macroeconomic headwinds and inflation impact(p.37)
- • COVID-19 and pandemic-related business disruption risks(p.32)
- • Indian economic slowdown and political instability risks(p.35)
- • Global financial market volatility and contagion effects(p.37)
- • Global economic slowdown affecting industrial demand(p.71)
- • Elevated inflation and rising input costs impacting profitability(p.71)
- • Supply chain disruptions and logistical constraints affecting operations(p.73)
- • Intense competition from larger domestic and international manufacturers(p.86)
- • Economic downturn affecting customer demand(p.146)
- • Increased competition from better-capitalized competitors(p.146)
- • Dependence on customer production and inventory levels(p.146)
- • Regulatory compliance and licensing requirements(p.146)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Naresh Nayak | Promoter | 25.00% | 17.16% |
| Niranjan Nayak | Promoter | 25.00% | 17.12% |
| Manjunath Nayak | Promoter | 24.99% | 17.12% |
| Naresh Nayak | Promoter | 25% | 17.12% |
| Niranjan Nayak | Promoter | 25% | 17.16% |
| Manjunath Nayak | Promoter | 24.99% | 17.12% |
| Meeta Nayak | Promoter Group | 25% | 21.62% |
| Manjunath Nayak | Promoter | 25.00% | — |
| Niranjan Nayak | Promoter | 25.00% | — |
| Naresh Nayak | Promoter | 25.00% | — |
| Meeta Nayak | Promoter Group | 25.00% | — |
| Naresh Nayak | Promoter/Selling Shareholder | — | — |
| Niranjan Nayak | Promoter/Selling Shareholder | — | — |
| Manjunath Nayak | Promoter/Selling Shareholder | — | — |
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.