Rexpro Enterprises Disappoints Investors: Weak Listing Followed by Lower Circuit
Stock Debut at a 19.31% Discount Leaves IPO Investors in Shock
New Delhi, January 29 : Furniture company Rexpro Enterprises made a disappointing debut on the stock market, leaving its investors in deep shock. The company’s shares were listed at a 19.31% discount on the NSE SME platform, and soon after listing, the stock hit the lower circuit due to heavy selling pressure.
This poor listing performance has led to a massive 23.34% loss for IPO investors on the first trading day itself.
Stock Listing: A Weak Start with Immediate Losses
Under its Initial Public Offering (IPO), Rexpro Enterprises had issued shares at ₹145 per share. However, the stock made its market debut today at just ₹117 per share on the NSE SME platform, significantly lower than the issue price.
Adding to investors’ woes, the stock continued to decline post-listing and soon hit the lower circuit at ₹111.15, triggering heavy losses. This sharp fall resulted in a 23.34% loss for IPO investors on day one itself.
IPO Subscription and Fundraising Details
Rexpro Enterprises had launched its ₹53.65 crore IPO between January 22 and January 24, 2025, which had received a strong response from retail investors, leading to an overall subscription of 17.67 times.
- Retail investors subscribed 27.12 times the reserved quota.
- The IPO included ₹47.13 crore worth of new shares issued by the company.
- An additional 4.50 lakh shares of ₹10 face value were sold under the Offer for Sale (OFS) window.
The company had planned to utilize the IPO proceeds for:
Factory renovation
Equipment procurement
Meeting working capital requirements
General corporate purposes
However, with such a weak listing, investor confidence has been severely impacted.
Rexpro Enterprises: Financial Performance & Market Sentiment
As per the prospectus submitted before the IPO, the company had reported strong financial growth in FY 2023-24:
Net profit surged by 722% YoY to ₹5.18 crore.
Revenue increased by 32% YoY, reaching ₹83.01 crore.
In the first half of FY 2024-25 (April-September 2024), the company has already reported:
₹4.08 crore net profit
₹49.56 crore revenue
Despite these strong financial figures, the market sentiment around the stock remains negative, primarily due to overvaluation concerns and weak investor confidence post-listing.
What Led to the Stock’s Weak Performance?
Several factors contributed to Rexpro Enterprises’ disappointing market debut:
1. Overvaluation Concerns
Many analysts believed that the IPO price of ₹145 per share was steep, considering the company’s scale and sector performance.
2. High Retail Participation but Lack of Institutional Demand
While retail investors oversubscribed the issue, institutional investors remained cautious, leading to lower demand post-listing.
3. Market Sentiment & Profit Booking
A weak market sentiment coupled with profit-booking by early investors resulted in heavy selling pressure immediately after listing.
4. Liquidity Concerns in SME Stocks
Since Rexpro Enterprises is listed on the NSE SME platform, the stock has lower liquidity compared to large-cap companies, making it more vulnerable to volatility.
Investor Reaction & Future Outlook
The unexpectedly weak listing has left IPO investors deeply disappointed, especially those who had anticipated strong listing gains. The stock hitting the lower circuit within hours of debut further signals lack of market confidence.
Analysts believe that Rexpro Enterprises may take time to stabilize, and future movements will depend on the company’s ability to deliver consistent financial performance.
Market experts advise caution, suggesting that investors closely monitor the stock before making additional commitments.
Rexpro Enterprises Disappoints Investors: Weak Listing Followed by Lower Circuit
