BSE SME: Rex Sealing and Packing Industries hits the roof on debut

Shares of Rex Sealing and Packing Industries hit an upper circuit of 5% at Rs 143.85 at 10:37 IST on the BSE, a premium of 6.56% compared with the issue price of Rs 135.

The scrip was listed at Rs 137, representing a premium of 1.48% compared with the initial public offer (IPO) price.

So far, the scrip hit a low of Rs 136. Over 88,000 shares of the company have changed hands in the counter till now.

The IPO of Rex Sealing and Packing Industries received bids for 15,00,000 shares as against 5,66,000 shares. The issue was subscribed 2.65 times.

The non institutional investors category put in bids for 5,66,000 shares. The retail individual investors (RIIs) category bought 9,34,000 shares.

The issue opened for bidding on Friday and it closed on 4 January 2023. The issue price is fixed at Rs 135 per share. The minimum order quantity is 1,000 shares.

The issue comprised of a fresh issue of 3,00,000 equity shares and an offer for sale of 2,99,000 equity shares. Of the total issue size of 5,99,000 equity shares, 33,000 equity shares have been reserved for the market maker and the net issue to public is 5,66,000 equity shares. The promoter and promoter group shareholding will dilute to 73.02% post IPO from 99.99% pre-IPO.

The company intends to utilize the net proceeds from the issue for general corporate purposes.

Rex Sealing and Packing Industries is a manufacturer and exporter of Sealing, packing and Insulation products including jointing sheets, fabric expansion joints, gland packing & ropes, high temperature resistant textiles etc. It has a dedicated in house research & development laboratory, which undertakes rigorous testing and quality management. The company caters to both, the domestic as well as international markets, limited to Gulf and Middle East countries.

The company recorded total income of Rs 5.71 crore and net profit of Rs 0.37 crore for the quarter ended on 30 June 2022.

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