Last day to subscribe Rishabh Instruments IPO

1 Sep 2023 , 01:00 AM

The Rishabh Instruments IPO has continued to receive a favorable response from investors, with bids placed for 4.97 crore equity shares, surpassing the offering size of 77.90 lakh shares. This results in a subscription rate of 6.39 times the initial offering on the final day of bidding, which is September 1. If you are interested in subscribing to the IPO, you can click here.

On the third day of trading, there has been strong demand in both the retail and HNIs (High Net Worth Individuals) categories. Retail investors have oversubscribed their allotted quota by 5.17 times, while high net worth individuals have bid 13.57 times the portion allocated to them.

Qualified institutional buyers have also shown keen interest in the IPO, purchasing 3.54 times the shares allocated to them, which represents 50% of the total offering size.

The Nashik-based company has reserved 15% of the public issue shares for high net worth individuals and the remaining 35% for retail investors.

At the upper price band, the company is valued at a Price-to-Earnings (P/E) ratio of 34.3x FY23 earnings, with a market capitalization of Rs 16,740 million following the issuance of equity shares. The company also boasts a return on net worth of 11.67%.

The company’s revenue has exhibited a consistent growth rate of 20% over a two-year Compound Annual Growth Rate (CAGR), while its EBITDA performance has grown by 11% over the same period. It’s worth noting that this IPO is available at a P/EPS (Price-to-Earnings per Share) ratio of 34.35x, making it challenging to compare to any listed peers. Additionally, the EBITDA margins have declined from 17% in FY2021 to 15% in FY2023, indicating some variability in margin performance.