Rexpro Enterprises Ltd IPO

The IPO opens on 22 Jan 2025 & closes on 24 Jan 2025.

Rexpro Enterprises Limited was originally incorporated as 'Rexpro Enterprises Private Limited' on March 12, 2012, with the Registrar of Companies, Mumbai. Subsequently, the Company was converted into Public Limited Company and a fresh Certificate of Incorporation dated August 9, 2024 was issued by Registrar of Companies, Mumbai. Rexpro Enterprises are a growing diversified product manufacturing company based out of Vasai, Maharashtra. The Company started as a one stop solution to meet the furniture and fixture requirements for retailers and acquired clients across multiple retail segments such as fashion, lifestyle, electronics, grocery, beauty, telecom etc. It has made complete standalone stores, shop in shops, kiosks and displays for leading global brands and several of large Indian retailers. Further, given the multimaterial manufacturing capability for customised products, they diversified into commercial and institutional furniture for offices, hospitals, government offices etc., and also the growing home segment. Further, they have developed industrial products like racks, cabinets and trolleys. The Company is engaged in the business of manufacturing furniture and industrial warehouse racks. It cater to some large companies and brands such as Shoppers Stop Limited, One RX India Private Limited (Samsung), Hindustan Unilever, Lenskart, Marks & Spencer Reliance India Private Limited, and Godrej & Boyce Mfg. Co. Limited. The Company entered into the business in manufacturing of retail fixtures along with Point of Sale Material (POSM) and onboards Blue Chip Clients in 2013. It gradually expanded the business by venturing into manufacturing furniture for commercial and residential in 2015 and further made expansion in products to industrial areas in 2017. In 2021, the Company started manufacturing unit II in Vasai for wood work to improve multi-material capability. It entered into infrastructure sector with Noise barriers for highways and flyovers in Mumbai in 2022. The subsidiary, Progulf warehousing was set up in manufacturing products for the growing warehousing sector in 2022. The Company launched screen doors for Metro in India for primary Metro contractors in 2023. The Company launched the IPO of 37,00,000 equity shares of Rs 10 each, by raising Rs 53.65 Crore, comprising a fresh issue of 32,50,000 equity shares aggregating to Rs 47.13 Crore and the offer for sale of 4,50,000 equity shares aggregating to Rs 6.52 Crore in January, 2025.

Rexpro Enterprises Ltd IPO will close on 24 Jan 2025.

<ul><li>Growing diversified products manufacturing company of furniture and fixture catering to retail such as standalone stores, shop in shops, kiosks and displays for leading global brands and several of large Indian retailers; Further, also have focused upon manufacturing products for commercial, industrial sectors etc.</li><li>Cater to clients' requirements across the entire country, ensuring timely deliveries and superior service.</li><li>Have clients across multiple retail segments such as fashion, lifestyle, electronics, grocery, beauty, telecom etc.</li><li>Possess advanced facilities and a talented pool of resources, enabling us to undertake diverse industrial fabrication projects.</li><li>Capability of customized production at mass level.</li><li>Complete warehousing solution to provide good growth.</li><li>Manufacturing capability for sound barriers used in infrastructure sector and double door used in metro station.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Minesh Anilbhai Chovatia</td> <td>1193500</td> <td>15</td> <td>1081000</td> <td>9.65</td> </tr> <tr> <td>2</td> <td>Premal Niraman Shah</td> <td>2254010</td> <td>28.33</td> <td>2141510</td> <td>19.11</td> </tr> <tr> <td>3</td> <td>Ragesh Deepak Bhatia</td> <td>2254320</td> <td>28.33</td> <td>2141820</td> <td>19.11</td> </tr> <tr> <td>4</td> <td>Ravishankar Sriramamurthi Mall</td> <td>2253700</td> <td>28.33</td> <td>2141200</td> <td>19.11</td> </tr> </tbody> </table>

<ul><li>The Company and Promoter of the company are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before the court and regulatory authority. Any adverse decision may make it liable to liabilities/ penalties and may adversely affect its reputation, business, and financial status.</li><li>The company success depends on its ability to manufacture, market and deliver the company products of high quality on schedule and on a large scale, which may expose it to new and increased challenges and risks.</li><li>The company depends on unorganized and third parties for the supply of raw materials and does not have firm commitments for supply or exclusive arrangements with any of its suppliers. Loss of suppliers may have an adverse effect on the company business, results of operations and financial condition.</li><li>Dependency on the State of Maharashtra for Procurement of Raw Materials.</li><li>Pricing pressure from its customers may adversely affect the company gross margin and profitability. Inability to increase its prices may have a material adverse effect on the company results of operations and financial condition.</li><li>Its Registered Office, factories and warehouses from where the company operates are not owned by the Company. Any adverse impact on the title /ownership rights of the owner, from who's premises the company operate its registered office, manufacturing units, warehouses or breach of the terms / non-renewal of the rent agreements, may cause disruption in its corporate affairs and business and impede the company effective operations and thus adversely affect its profitability. </li><li>The company has not entered into any long-term contracts with any of its customers and typically operate on the basis of purchase orders, which could adversely impact its revenues and profitability.</li><li>The company is dependent on various kinds of Suppliers for the supply of raw materials, services and finished goods.</li><li>A significant portion of its revenues are derived from a specific regional area and any adverse developments in this region could have an adverse effect on the company business, cash flows, results of operations and financial condition. </li><li>The Company's failures to maintain the quality standards of the products could adversely impact its business, results of operations and financial condition.</li><li>The company has in past entered into related party transactions and its may continue to do so in the future.</li><li>Its business is dependent on the company manufacturing activities and its subject to all risks associated with manufacturing processes. Any disruptions caused in its manufacturing activities could materially and adversely affect the company business, financial condition, cash flows and results of operations.</li><li>If any industrial accident, loss of human life or environmental damage were to occur the company could be subject to significant penalties, other actionable claims and, in some instances, criminal prosecution.</li><li>Its products are subject to changing technology, design and customer requirements. The company inability to upgrade its manufacturing technology, match customer requirements, upgrade to new designs etc may affect its business and operations. </li><li>The Company failures to maintain the quality standards of the products could adversely impact its business, results of operations and financial condition.</li><li>The company faces competition in its business from domestic competitors from both organised and unorganised players. Such competition would have an adverse impact on its business and financial performance.</li><li>The company industry is labour intensive and its business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by the company employees or those of its suppliers.</li><li>The company operations may be adversely affected in case of industrial accidents at its production facilities. </li><li>The company requires a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Some of these approvals are required to be transferred in the name of "Rexpro Enterprises Limited" from "Rexpro Enterprises Private Limited" pursuant to conversion and name change of the company and any failure or delay in obtaining such approvals or renewal of the same in a timely manner may adversely affect its operations.</li><li>The Company has not placed orders for plant and machinery required by it for which funds are being raised through this Issue. Any delay in placing the orders or supply of these equipment's may result in time and cost overruns and may affect its profitability.</li><li>Risk of Recall on Unsecured Loans taken by the Issuer and its Subsidiaries.</li><li>Risk of delays in the implementation of the project for which funds are being raised.</li><li>Sustained negative cash flow could adversely impact its business, financial condition and results of operations. </li><li>The Company is dependent on third party transportation providers for the supply of raw materials and delivery of its goods and any disruption in their operations or a decrease in the quality of their services could affect the Company's reputation and results of operations. </li><li>Its business depends largely on availability of various materials and any shortage or interruption in the supply or decrease in quality could adversely affect its business or results of operations.</li><li>Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance. </li><li>Its success depends largely upon the services of the company Directors, Promoters, other Key Managerial Personnel and Senior Management Personnel and its ability to attract and retain them. Demand for Key Managerial Personnel in the industry is intense and its inability to attract and retain Key Managerial Personnel may affect the operations of the Company. </li><li>The company is subject to risks associated with expansion into new geographical regions.</li><li>The company propose to utilize a portion of the Net Proceeds to undertake acquisitions for which targets have not been identified. Its inability to complete such transactions may adversely affect its competitiveness and growth prospects and the company proposed deployment of the Net Proceeds with respect to unidentified acquisitions are based on management estimates and the same have not been independently appraised by a bank or a financial institution.</li><li>The company has issued Equity Shares at a price below the proposed issue price during the past 1 years prior to the date of filing the RHP and the average cost of acquisition of Equity Shares by its Promoters is lower than the Issue Price.</li><li>The Company has availed insurance cover for Furniture and Fixtures, Plant and Machinery, Raw Material etc., however, it may be inadequate to protect us fully from all losses and damages which in turn would adversely affect our financial condition and results of operations.</li><li>Its may not be successful in implementing the company business strategies.</li><li>Changes in technology may impact its business by making the company products or services less competitive or obsolete or require it to incur additional capital expenditures.</li><li>In addition to normal remuneration or benefits and reimbursement of expenses, some of its Directors and key managerial personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company. </li><li>Its Promoters, together with the company Promoter Group, will continue to retain majority shareholding in the Company after the proposed Initial Public Issue, which will allow them to exercise significant control over it. The company cannot assure you that its Promoters and Promoter Group members will always act in the best interests of the Company. </li><li>Its ability to pay dividends in the future will depends upon the company future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.</li><li>The objects of the Issue include funding working capital requirements of the Company, which is based on certain assumptions and estimates.</li><li>Significant security breaches in its computer systems and network infrastructure, fraud, systems failures and calamities would adversely impact its business.</li><li>The company is subject to the risk of failures of, or a material weakness in, its internal control systems.</li><li>There have been certain instances of non- compliances in respect of Tax / ROC / Employee benefit related filing or payments.</li><li>Customers may cancel their purchase orders of its products despite their deposit payment, thus harming the company business, prospects, financial condition and results of operations.</li><li>Risk relating to unregistered Leave and License agreement.</li><li>The company has contingent liabilities and capital commitments. Its financial condition could be adversely affected if any of these contingent liabilities or capital commitments materialize.</li><li>Its may need to seek additional financing in the future to support the company growth strategies. Any failures to raise additional financing could have an adverse effect on its business, results of operations, financial condition and cash flows.</li><li>Its funding requirements and the proposed deployment of Net Proceeds are based on management estimates and the company has not entered into any definitive arrangements to utilize certain portions of the Net Proceeds of the Offer.</li><li>Breaches in data security, failure of information security systems and privacy concerns could adversely impact its financial condition, subject it to penalties, damage the company reputation and brand, and harm its business, prospects, results of operations and cash flows.</li><li>In addition to normal remuneration, other benefits, and reimbursement of expenses of its Directors (including the company Promoter) and Key Management Personnel are interested in the Company to the extent of their shareholding and dividend entitlement in the Company. </li><li>Employee misconduct, errors or fraud could expose it to business risks or losses that could adversely affect its business prospects, results of operations and financial condition.</li><li>The requirements of being a public listed company may strain its resources and impose additional requirements. </li><li>The company business is substantially affected by prevailing economic, political and other prevailing conditions in India. </li></ul>

The Issue type of Rexpro Enterprises Ltd is Fixed Price - SME.

The minimum application for shares of Rexpro Enterprises Ltd is 1000.

The total shares issue of Rexpro Enterprises Ltd is 3700000.

Initial public issue of up to 37,00,000 equity shares of face value of Rs. 10/- each of Rexpro Enterprises Limited for cash at a price of Rs. 145/- per equity share (Including a Premium of Rs. 135/- per Equity Share) ("Offer Price") aggregating up to Rs. 53.65 crores comprising of fresh offer of up to 32,50,000 equity shares aggregating to Rs. 47.12 crores ("Fresh Offer") and an offer for sale of up to 1,12,500 equity shares each by Minesh Anilbhai Chovatia, Premal Niranjan Shah, Ragesh Deepak Bhatia and Ravishankar Sriramamurthi Malla i.e 4,50,000 equity shares ("Selling Shareholders") aggregating to Rs. 6.52 crores ("Offer for Sale") ("The Offer") and up to 1,86,000 equity shares aggregating to Rs. 2.70 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The offer less the market maker reservation portion i.e. offer of up to 35,14,000 equity shares of face value of Rs. 10/- each at an offer price of Rs. 145/- per equity share aggregating to Rs. 50.95 crores ("Net Offer"). The issue and the net issue will constitute 33.02 % and 31.36 % of the post-issue paid-up equity share capital of the company. The face value of the equity shares is Rs. 10/- each and the issue price is 14.50 times of the face value.