Rexpro Enterprises Share Price Lists at ₹117, Down 19% on NSE SME Debut

Market Performance

Rexpro Enterprises's listing on the NSE SME platform on January 29 was disappointing. It opened at ₹117 per share—19% below its issue price of ₹145. Shortly after listing, the stock hit the 5% lower circuit at ₹111.15, reflecting weak investor sentiment.

Market sources suggest that the stock's listing fell short of grey market expectations, with the grey market premium (GMP) being ₹10 prior to the listing.

IPO Details and Subscription

Rexpro Enterprises' SME IPO was valued at ₹53.65 crore and included a combination of a fresh issue and an offer for sale (OFS). The IPO opened on January 22 and closed on January 24. The overall subscription of the IPO was nearly 18 times. The retail portion was oversubscribed 27 times, highlighting strong demand despite the weak listing.

The company aims to use the IPO proceeds for equipment purchases, factory renovations, working capital requirements, inorganic growth, and general corporate purposes.

Company Overview

Rexpro Enterprises, headquartered in Vasai, Maharashtra, specialises in manufacturing furniture and fixtures for various retail segments, including fashion, lifestyle, electronics, grocery, beauty, and telecom. It has also diversified into commercial and institutional furniture for offices, hospitals, government entities, and the home furniture segment.

The company's client portfolio includes major brands such as Shoppers Stop, Samsung (One RX India Private Limited), Hindustan Unilever, Lenskart, Marks & Spencer, Reliance India Private Limited, and Godrej & Boyce Mfg. Co. Limited.

According to its Red Herring Prospectus (RHP), Rexpro Enterprises has experienced strong financial growth over the past two years:

• Revenue CAGR: 53%
• Operating EBITDA CAGR: 149%
• PAT CAGR: 197%

Summary

Despite strong financial performance and robust IPO subscription, Rexpro Enterprises had a weak stock market debut, listing at a significant discount. Investor sentiment remains cautious as the stock hit the lower circuit immediately after listing. The company's future performance will hinge on its ability to successfully execute growth plans and strengthen market confidence.