Rexpro Enterprises, a furniture manufacturer based in Vasai, Maharashtra, opens its IPO for subscription on January 22, 2025, seeking to raise ₹53.65 crore. The IPO has seen significant demand on its first day, with a healthy grey market premium suggesting a strong debut.
India-based Rexpro Enterprises, a leading furniture manufacturer specializing in retail and commercial furniture, opened its initial public offering (IPO) for subscription on January 22, 2025. The company, which serves a wide range of clients including major brands like Shoppers Stop, Lenskart, and Hindustan Unilever, is looking to raise ₹53.65 crore through the offering. Based in Vasai, Maharashtra, Rexpro Enterprises designs and manufactures furniture and fixtures for various retail segments, including electronics, beauty, lifestyle, and grocery, as well as commercial sectors like offices, hospitals, and government institutions.
The IPO, which runs until January 24, offers shares at a price band of ₹145 each. Rexpro Enterprises is offering a mix of fresh issue and an offer for sale, with a total of 32.5 lakh shares being issued in the fresh issue, raising ₹47.13 crore, and 4.5 lakh shares being offered for sale, worth ₹6.53 crore.
Subscription and Grey Market Performance
As of January 22, 2025, the first day of the IPO subscription, the issue has seen decent demand, with the overall subscription standing at 1.44 times by 1:50 PM. The retail portion has been heavily subscribed, being booked 2.54 times, while the non-institutional buyers portion lagged behind at just 0.35 times.
Investors are also closely watching the grey market performance of Rexpro Enterprises. As of today, the grey market premium (GMP) for the IPO stands at ₹48, indicating a potential listing price of ₹193 on the NSE SME platform, representing a 33% premium over the issue price of ₹145.
Company’s Financials and Growth Prospects
Rexpro Enterprises has shown impressive growth in recent years. The company reported a compound annual growth rate (CAGR) of 53% in revenues over the past two years. Its operating EBITDA grew at a CAGR of 149%, and its profit after tax (PAT) saw a significant 197% CAGR during the same period, indicating strong operational efficiency and growth potential.
The funds raised through the IPO will be used for purchasing new equipment, renovating the company’s factory, fulfilling working capital requirements, and pursuing inorganic growth strategies, along with general corporate expenses.
The Way Forward
Rexpro Enterprises aims to leverage its strong financials and expanding client base to further strengthen its position in the furniture and fixtures market. The company’s robust relationships with leading brands such as One RX India Private Limited (Samsung), Marks & Spencer Reliance India, and Godrej & Boyce Mfg. Co. Limited are expected to contribute to its continued growth trajectory.
With the IPO set to close on January 24, all eyes are now on the company’s future performance in the market and whether it will capitalize on the promising subscription numbers and healthy GMP signals.
