Rexpro Enterprises Limited is preparing to launch its initial public offering (IPO) from January 22 to January 24, 2025, aiming to raise approximately ₹53.65 crores. The IPO will consist of a fresh issue of shares priced at ₹145 each, with a face value of ₹10. Established as a manufacturer of furniture and fixtures, Rexpro Enterprises focuses on meeting diverse market needs with innovative solutions. The funds raised will be utilized for purchasing equipment, renovating the factory, and enhancing working capital requirements.
₹10
₹145
₹117.00
Expert Opinions
Market sentiment for the Rexpro Enterprises IPO is moderately positive, driven by increasing consumer demand for furniture and fixtures, particularly in the residential and commercial sectors. Rexpro Enterprises has established a solid reputation in the manufacturing of high-quality furniture, supported by a diverse product range and a commitment to innovation and customer satisfaction. However, potential risks include fluctuations in raw material prices, which could impact profit margins, as well as competition from both domestic and international players in the furniture market.
Valuation Analysis for The IPO is priced at ₹145 per share, with a projected price-to-earnings (P/E) ratio of 25.49 based on estimated earnings for FY2024. This valuation appears competitive compared to industry peers, reflecting the company’s growth potential. From a long-term investment perspective, Rexpro Enterprises is well-positioned to benefit from the growing demand for quality furniture solutions
Investor Considerations
Investors considering the Rexpro Enterprises IPO should evaluate several key factors. Company performance and fundamentals indicate a solid growth trajectory, with recent financials showcasing an increase in revenue and profitability, reflecting effective operational management. The sector outlook is favorable, as the demand for furniture and fixtures continues to rise, driven by urbanization and changing consumer preferences in both residential and commercial markets.
The IPO valuation presents a return on net worth (RoNW) of approximately 56.24%, suggesting a compelling investment opportunity at the issue price of ₹145 per share. Growth prospects remain strong, with plans for expanding production capabilities and enhancing product offerings to capture market share. However, potential risk factors include fluctuations in raw material costs and competition from established players in the industry. A long-term investment horizon is advisable, as Rexpro Enterprises aims to leverage favorable market trends, positioning itself for sustained growth in the furniture sector.
| Date | GMP | Trend |
|---|---|---|
| 28 Jan 2025 10.52 | ₹10 | --- |
| 27 Jan 2025 10.37 | ₹10 | --- |
| 25 Jan 2025 11.36 | ₹10 | --- |
| 24 Jan 2025 18.59 | ₹10 | Down |
| 23 Jan 2025 11.29 | ₹20 | Down |
| 22 Jan 2025 11.08 | ₹50 | Up |
| 21 Jan 2025 11.00 | ₹00 | --- |
| 20 Jan 2025 11.42 | ₹00 | --- |
| 18 Jan 2025 11.41 | ₹00 | --- |
| 17 Jan 2025 15.29 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Rexpro Enterprises’ listing performance. While the GMP of ₹10 predicted a positive premium of 6.90% over the issue price, the stock actually listed at a significant discount of 19.31%. With a substantial prediction error of 24.52%, the GMP not only failed to predict the magnitude but also completely misread the direction of the listing movement, demonstrating its unreliability as a price predictor in this case.
Rexpro Enterprises IPO Current GMP is ₹10.
Rexpro Enterprises IPO Expected Returns is 6.90%.
Rexpro Enterprises IPO estimated listing price is ₹155.