IPO

Rex Sealing and Packing Industries Limited IPO : Objectives, Pros and Cons

Rex Sealing and Packaging initiated its business operations in 2005. The company is a manufacturer and exporter of seal king packing. Its product portfolio includes Expansion Joints, Jointing sheets, Gland packaging and Ropes, Ceramic Fibre Products, High Temperature Resistant Textiles etc.

The initial product of the company was Gland packaging and from there on the advancement was made. Its manufacturing facility is located at Taloja Industrial Area, Raigad. The company also plans to expand further with another manufacturing facility in Anandnagar, MIDC Ambernath. With this expansion the company would enable the capacity to manufacture all types of Asbestos Free Gaskets Sheets for Steel, Automotive and other processes. Rex Sealing and Packing’s customer base include industrial giants from various segments such as Power, Petrochemical, Steel, Pharmaceutical, Chemical, Cement, Gas and other processing industries.

IPO DETAILS

Rex Sealing and Packing Industries Limited IPO is set to launch on 30 Dec., 2022. The subscription timeline extends till 4 Jan, 2023. The size for the IPO is 8.09 Crore Rs.. Shares issued through fresh issues are worth 4.05 Crore Rs. Shares issued through Offer For Sale mode are worth Rs 4.04 Crore Rs. The lot size is 1000 shares and the price is 135 Rs per share. The company is going to get listed at BSE SME. The face value per share is Rs.10 and this is a Fixed Price issue. The registrar for the company is BigShare Services Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	30 Dec., 2022
CLOSING DATE FOR IPO	4 Jan, 2023
ISSUE TYPE	Fixed Price Issue
Face Value per share	10 Rs. per share
IPO price band	135 Rs. per share
LOT SIZE	1000 shares
MINIMUM ORDER QUANTITY	1000 shares
ISSUE SIZE	8.09 Crore Rs.
OFFER FOR SALE	4.05 Crore Rs
FRESH ISSUE	4.04 Crore Rs.
LISTING AT	BSE SME
LISTING DATE	12 Jan, 2023

IMPORTANT DATES

IPO OPENING DATE	30 Dec., 2022
CLOSING DATE FOR IPO	4 Jan, 2023
IPO ALLOTMENT DATE	9 Jan, 2023
REFUNDS	10 Jan, 2023
DEMAT A/C CREDITED ON	11 Jan, 2023
IPO LISTING DATE	12 Jan, 2023

Rex Sealing and Packing Industries Limited IPO begins for subscription from 30 Dec., 2022. The IPO subscription would continue till 4 Jan, 2023. The allotment status for the shareholders who applied would come on 9 Jan, 2023. The refunds for the ones who did not get allotment would be initiated on10 Jan, 2023. The DEMAT accounts of shareholders would be credited on 11 Jan, 2023. The listing of the company would be accompanied on 12 Jan, 2023.

Lead Managers

The lead managers are :

Aryaman Financial Services Limited

The minimum lot size for the company is decided at 1000 shares. This holding accounts to 135000 Rs.. The maximum lot size is decided at 2000 shares (HNI). This amounts to 270000 Rs.. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	1000 shares	135000 Rs.
Maximum	2000 shares	270000 Rs.

OBJECTIVES FOR THE IPO

For General corporate purposes.
The funds can be used for working capital requirements.

COMPANY FINANCIALS

Particularly (in Lakh Rs.)	2021-22	2020-21	2019-20
ASSETS	1443	1317	1358
Revenue	2116	1726	2017
PAT	55	37	113

Rex Sealing and Packing Industries has an asset base of 1443 Lakh Rs in 2022. The same was 1317 Lakh Rs in 2021 and 1358 Lakh Rs in 2020. The company’s revenue has been a bit unstable over the years. It had a revenue base of 2017 Lakh Rs in 2020 which decreased to 1726 Lakh Rs in 2021 and again in 2022 the same increased to 2116 Lakh Rs. This may be the effect of Lockdown. The profits of the company on the other hand have almost decreased by 50%. The profits were 113 Lakh Rs in 2020 which decreased to 37 Lakh Rs in 2021 and 55 Lakh Rs in 2022.

PROS

Rex Sealing and Packing Industries has its own manufacturing facility located at Taloja Industrial Area, Raigad.
The company also plans to expand further with another manufacturing facility in Anandnagar, MIDC Ambernath. With this expansion the company would enable the capacity to manufacture all types of Asbestos Free Gaskets Sheets for Steel, Automotive and other processes.
Rex Sealing and Packing’s customer base include industrial giants from various segments such as Power, Petrochemical, Steel, Pharmaceutical, Chemical, Cement, Gas and other processing industries.

CONS

The company works in a highly competitive segment.

Rex Sealing and Packing Industries Limited IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

Logging into Zerodha console through its website or KITE platform.
Clicking the IPO link present in the Portfolio section.
Click the Rex Sealing and Packing Industries Limited IPO button and press the BID button.
Entering the details asked for like UPI ID, Quantity and price.
Submit the application form for the IPO.
Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.

dhairya@socialcoffee.in