Rappid Valves (India) Limited IPO Message Board (Page 3)

Should have gone FF in Pheonix Overseas yesterday than saving for this.
Didn't expect this level of oversubscription.

​@GrayIsTheNewBlack Got super lucky with 1/5 retail in Sahasra. So it worked out by pure chance

That is amazing @rohiitian  🎉
I too got one confirmed lot, hoping for a good listing & post-listing action 🤞
But the crazyness in SMEs in general seems to have taken a break.

I got in Divyadhan & Forge too, any fundamental triggers you see which may result in more than decent listing gains ?
I'm not expecting much from these two to be honest given the current situation.

Retail have better chances of allotment than up to 5 lots of 1 HNI Application.

Fully skipping based current QIB subscription numbers and the risks/negative observations against this company and MM.

i think 2 lot and 3 lot HNI wil not work here

Why not work?

Its a pure lottery based allotment unless.. registrar do some goof up.

Applied 6 appln x 3 lots each.

All refund. 😢

Applied 3 Retails

Hello All Seniors

SEBI Launches Investigation Into More Than 12 Domestic Merchant Banks Over SME IPO Due Diligence.

is it correct ???? if anyone having information regarding this, please share the same.

Keeping distance from SME due to following reasons:
1. SME sentiment is negative due to recent SME failures
2. Strong main board ipo are in the pipeline hence don't want to block funds in under performing SME ipos.

Nothing wrong in keeping distance from sme's.. Nowadays.. !!

Following same strategy. Even avoiding average mainboard IPOs like WCIL, Balajee. SME IPOs are delivering more misses than hits currently. Already, so many SME companies trading at 50% from recent peaks. That too with very thin volumes making exits difficult. I think more than investors, its the Promoters that need a reality check - bringing IPOs at such expensive valuations!

Anchors set is ok, a new name (Smart Horizon) is present. LM is Shreni and MM is Rikhav. Here one has a good repute, Shreni while not so good history for Rikhav (even Rikhav has started improving recently) but since Shreni is 100% underwriting the issue, a reasonable assumption goes to the positive side. Post ipo promoter holding is close to 51%.

Co. is dealing in valves, and a variety of valves like for various industries, especially for Marine Valves. Follows end to end solution in designing and manufacturing the valves. Promoter has experience of oil and gas specialised valve industry and knows what works and which valve sector is more competitive and what does not work. Marine, ship valve industry so far has fewer players than oil and gas. Other industry catered to are Ethanol, Petrochemical, Water treatment etc. Just in July they have received fund infusion from Maharashtra Defense Fund (around 5 cr) in the form of equity dilution. Before this they already had one or two instances of meeting with Secretary of Defense (Delhi). This interaction has enabled Rappid Valve to be the preferred defence supplier visible in defence revenues going close to 40% of total revenues FY24. Current employees are close to 60.

Revenues have gone more than 2x in FY24 but around 7 cr from it is through related party (Vinpra Engineering). Rappid Valves has clarified that there is no longer any relation between Rappid and Vinpra from 2022 when Mr. Gaurav resigned from Vinpra, yet in 2024 still business is going on ?!. This is reflective in trade receivables as well as well as in the pile of inventory. Top 5 customers accrue to 71% revenues FY24.

Current capacity utilisation is close to 85% and the additional machinery from IPO proceeds (6.7 cr ) goes operational by FY26 start. Around 38 lakhs for office renovation from IPO proceeds. There is some timeline gap in some borrowings for disbursement date and sanction date (as huge as 4 yrs delay, which is unusual). Around 10.5 cr from IPO proceeds is used to repay loans that adds nearly 84 lakhs to PAT which boost IPO price 28 P/E to 23 P/E. FY25 growth triggers on forward earnings place it near 18 P/E. Operating Cash flows are largely negative due to inventory and increase in trade receivables.

Peers trade as follows : Atam Valve (30 P/E with minimal QoQ growth), Meson Valves (95 P/E with good growth and marine valve story), Chemtech Industrial Valve (80 P/E turned around from September 23)

Inclusion of frenzy words have kept the valuations steep considering the adjusted revenues for related party and low post ipo promoter holding. Still a type of defence proxy, with inclusion of Maharashtra Fund as equity investor is good for short term. Co. has catered to clients like Mazagon Dock, GRSE etc as per mgmt but no outright mention as such. Medium term to long term depends on the capex addition and how well capacity is utilised as per that.

U hv been providing outstading services to the CG members who hv been immensely getting benefitted.
Thank u

​@MuStrFc You are star! Thanks for great review of the company and helping to entire community!

​@MuStrFc Confident with WOL3D, but fingers crossed for Rapid valves. Your suggestion needed. Other than LM, I donot find anything great with this company. Markets are too frenzy and we have to be careful in choosing ipo. One example is western carrier listed today

51% promoter holding post-issue.
MM Rikhav Securities (Spectrum SME IPO never went positive, still 30% below issue price after 1+ yr of listing, Rikhav has sold on declines)

Second point is a bigger turn off to me.

​@ValueSeeker You are star! Thanks for helping to CG community!

​@JSK✨ bhai, I just try to give back the way I have got from CG. 🙏

Anchor ⚓️ list

Rappid Valves seems to be a well-established (2011) company specialising in the valve manufacturing industry( seems they are very good at it). A 30 crore issue of which 10 crore will most probably go in paying up the borrowings. rest will be used for setting up another plant and some other upgradations/imrovements in the existing infrastructure. Seems one can apply for longterm or even listing gains. I plan to apply. however will wait for more inputs from more experienced members.

1st comment .lagta jai ye ipo lag jayega