Rexpro Enterprises Limited, a leading furniture manufacturer, is launching its ₹53.65 crore IPO, comprising a fresh issue worth ₹47.12 crores (32.50 lakh shares) and an offer for sale of ₹6.53 crores (4.50 lakh shares). The subscription window runs from January 22-24, 2025, with the company set to make its debut on the NSE SME platform on January 29, 2025.
The equity shares, carrying a face value of ₹10, are fixed at ₹145 per share with a lot size of 1,000 shares. While retail investors can participate with a minimum investment of ₹145,000 per lot, HNIs need to commit to at least two lots (₹290,000). With the furniture industry showing promising growth potential and the allotment notifications scheduled for January 27, this could be an interesting opportunity for investors looking to diversify their portfolio in the manufacturing sector.
Rexpro Enterprises Limited IPO is a fundraise worth ₹53.65 crores comprising a fresh issue and an offer for sale with 186,000 shares reserved for the market maker Giriraj Stock Broking Private Limited. Retail investors are being offered 50% of the net issue and the remaining are being offered to other investors. The IPO will be available for subscription from January 22, 2025, to January 24, 2025, providing an opportunity for investors looking to gain a stake in the furniture manufacturer.
| Rexpro Enterprises IPO date | January 22, 2025 - January 24, 2025 |
| Fixed price | ₹145 per share |
| Face value | ₹10 per share |
| Lot size | 1000 shares |
| Issue type | Fixed Price IPO |
| Fresh issue size | 32,50,000 shares amounting to ₹47.13 crores |
| Offer for Sale (OFS) | 4,50,000 shares amounting to ₹6.53 crores |
| Total issue size | 37,00,000 shares amounting to ₹53.65 crores |
| Listing at | NSE SME |
| Market maker portion | 186,000 - Giriraj Stock Broking Pvt Ltd |
| Shareholding post-issue | 1,12,06,460 |
| Shareholding pre-issue | 79,56,460 |
The Rexpro Enterprises Limited IPO opens for subscription on January 22, 2025, and closes on January 24, 2025, with allotment scheduled for January 27, 2025.
| IPO open date | January 22, 2025 (Wednesday) |
| IPO close date | January 24, 2025 (Friday) |
| Basis of allotment | January 27, 2025 (Monday) |
| Initiation of refunds | January 28, 2025 (Tuesday) |
| Credit of shares to Demat account | January 28, 2025 (Tuesday) |
| Listing date on BSE / NSE SME | January 29, 2025 (Wednesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on January 24, 2025 (Friday) |
Rexpro Enterprises Limited, established in 2012 in Vashi, Maharashtra, has evolved into a prominent furniture manufacturing company serving diverse retail segments. With three manufacturing facilities in Vashi, the company has built an impressive client portfolio including major brands like Shoppers Stop, Samsung, Hindustan Unilever, Lenskart, Marks & Spencer Reliance, and Godrej & Boyce.
From retail fixtures to office furniture, hospital equipment, and home segments, the company has diversified its product range to cater to both private and government sectors. As of September 2024, Rexpro operates with a robust workforce of 65 permanent employees and 126 contractual workers, with an additional nine employees in its subsidiary, demonstrating its significant operational scale and capacity to serve major clients across multiple segments.
The Company intends to use the net proceeds from the issue for purchasing equipment and renovating its factory, meeting its working capital needs, pursuing inorganic growth opportunities, and covering general corporate expenses.
The Rexpro Enterprises Limited IPO’s key performance indicators, as of March 31, 2024, reflect the company's financial health with a Return on Equity of 56.24%, Return on Capital Employed (ROCE) at 62.21% and a Debt-to-Equity ratio of 0.65. The Return on Net-Worth (RoNW) stands at 56.24%, and the PAT Margin was 6.25%. The company’s market capitalisation is ₹162.49 crore.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 |
| Revenue | 49.56 | 83.01 | 62.89 |
| Assets | 50.54 | 39.95 | 27.87 |
| Net Worth | 13.08 | 9.22 | 4.69 |
| Profit After Tax | 4.08 | 5.18 | 0.63 |
| Reserves & Surplus | 5.12 | 8.96 | 4.43 |
Amount in ₹ crores
The pre-IPO EPS is at ₹5.69 while the post-IPO EPS will be ₹6.89. Similarly, the pre-IPO Price to Earnings ratio is 25.49 and will become 21.04 post-IPO.
Rexpro Enterprises stands out for its diverse and customizable product range, offering tailored furniture solutions for various sectors, including retail, offices, hospitals, and homes. The company’s ability to produce personalized products allows it to cater to a wide range of client needs, enhancing its market appeal. Additionally, Rexpro is committed to high-quality manufacturing processes, adhering to strong ethical business practices, which have fostered trust and satisfaction among clients.
The company also benefits from its versatile manufacturing facilities, with three well-equipped units in Vashi that facilitate efficient production and can accommodate varied client demands. The management team’s experience further strengthens the company’s position, providing a solid foundation for long-term growth and innovation. Moreover, Rexpro has built long-term relationships with key customers, enhancing its market stability and ensuring consistent business opportunities.
Rexpro Enterprises faces challenges from ongoing litigation and claims, which could potentially result in adverse decisions, leading to financial liabilities, penalties, and reputational damage. The company also faces risks related to its dependence on timely delivery and large-scale production. Any delays or failure to maintain consistent quality could affect operational success and client satisfaction.
Additionally, the company’s reliance on suppliers without exclusive arrangements exposes it to supply disruptions, which could impact business continuity and financial stability. Delays in the completion of 10 out of 17 ongoing projects further present risks, including increased costs, penalties, and potential damage to the company’s reputation. Furthermore, Rexpro’s heavy dependence on government contracts, particularly from the Government of Karnataka, exposes the company to risks from policy changes or contract adjustments that could adversely affect revenue streams.
Investing early in Rexpro Enterprises Limited could offer an opportunity to be part of the company’s growth in the furniture manufacturing sector. However, potential investors should thoroughly evaluate various factors, such as the company’s operational history, financial stability, industry trends, and growth strategy, while also considering their own investment goals and risk tolerance. It is advisable to review the offer document and seek professional guidance if necessary to make an informed decision about participating in this IPO.
What is the Rexpro Enterprises Limited IPO?
The Rexpro Enterprises Limited IPO is an NSE SME offering consisting of a fresh issue of 32.50 lakh shares and an offer for sale of 4.50 lakh shares with a face value of ₹10 per share, aiming to raise ₹53.65 crore. The fixed price has been set at ₹145 per share, with a minimum order quantity of 1000 shares. This IPO will be open for subscription from January 22, 2025, to January 24, 2025. Horizon Management Private Limited is the book-running lead manager, Cameo Corporate Services Limited is the registrar while Giriraj Stock Broking Private Limited is the market maker.
When will the Rexpro Enterprises IPO open?
The Rexpro Enterprises Limited IPO will open for subscription on January 22, 2025, and will close on January 24, 2025.
When is the Rexpro Enterprises IPO listing date?
The tentative listing date for the Rexpro Enterprises Limited IPO is Wednesday, January 29, 2025.
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