Essential Information about the Rishabh Instruments IPO

30 Aug 2023 , 07:28 AM

The initial public offer of Rishabh Instruments will be opening for subscription on August 30 and will conclude on September 1. 

Headquartered in Nashik, Maharashtra, Rishabh Instruments Limited is an international supplier of energy efficiency solutions. The company specializes in areas such as electrical automation, metering and measurement, precision engineered products, as well as aluminum high-pressure die castings. Its diverse range of offerings finds applications across various industries including power, automotive, and the industrial sector.

Important details of Rishabh Instruments IPO:

• Issue Size: The company want to raise Rs 490 crore from the maiden public offer. This includes fresh issue of equity shares worth Rs 75 crore and an offer for sale of 9,428,178 shares by promoters and shareholders.
• Price Band: Rishabh Instruments has fixed price band at Rs 418-441 per share for its initial public offering.
• Lot size: Investors who want to apply for the IPO can bid for 34 shares and its multiples in a lot.
• Minimum investment: Retail investors are required to make a minimum investment of Rs 14,994 per lot, which consists of 34 shares. On the other hand, the maximum investment permitted for retail investors is Rs 194,922, which corresponds to 442 shares (equivalent to 13 lots), as they are allowed to invest up to Rs 2 lakh in the IPO.
• The IPO offer is divided into three categories: 50% of the offer is reserved for qualified institutional buyers (QIBs), 15% is allocated to high-net-worth individuals (HNIs), and the remaining 35% is reserved for retail investors.
• Anchor book: The anchor investment for the IPO will take place on August 29.
• IPO objectives: The company will use net proceeds from the IPO towards expansion of Nashik Manufacturing Facility I and for other general corporate purposes.
• Basis of allotment: The company will finalise the allotment of shares on September 6.
• Listing date: The shares of Rishabh Instruments Limited are expected to list on BSE and NSE on September 11.

The book-running lead managers (BRLM) for the offer are DAM Capital Advisors, Motilal Oswal Investment Advisors, and Mirae Asset Capital Markets (India) Pvt Limited. Taking on the role of registrar is KFin Technologies.

As per the details outlined in the Red Herring Prospectus (RHP), Rishabh Instruments observed a 21.11% growth in revenue from operations, climbing from Rs 470.25 crore in Fiscal 2022 to Rs 569.54 crore in Fiscal 2023. This increase was predominantly influenced by higher earnings from the sale of both goods and services. In terms of profit, there was a marginal rise to Rs 49.69 crore in Fiscal 2023, in comparison to Rs 49.65 crore in Fiscal 2022.