Rishabh Instruments IPO Receives Strong Investor Interest, Subscribed 2.46 Times on Day 2

31 Aug 2023 , 06:32 AM

The response from investors to the Rishabh Instruments IPO remains positive, with bids coming in for 1.91 crore equity shares against the offer size of 77.90 lakh shares. This translates to a subscription rate of 2.46 times on August 31, marking the first day of the bidding period.

Significant demand has been observed in both the retail and High Net Worth Individuals (HNIs) categories. Retail investors have displayed keen interest, oversubscribing their allocated quota by 2.79 times, while high net worth individuals have placed bids that exceed 4.65 times the portion designated for them.

Qualified institutional buyers have also indicated their enthusiasm for the IPO, purchasing 22 percent of the shares from the reserved portion, which constitutes 50 percent of the total offer size.

The Nashik-based company has earmarked 15 percent of the public issue shares for high net worth individuals, with the remaining 35 percent allocated for retail investors.

On the initial day of bidding, August 30, the subscription rate reached 73 percent.

Rishabh Instruments intends to raise Rs 490.78 crore through an initial public offering of 1.11 crore equity shares at the upper price band.

The price band for the issue has been set at Rs 418-441 per share.

The IPO consists of a fresh issue of Rs 75 crore, along with an offer-for-sale (OFS) component. The OFS comprises 94.28 lakh shares being offered by promoters and investor SACEF Holdings II, accounting for Rs 415.78 crore. SACEF Holdings, a subsidiary of the South Asia Clean Energy Fund (an India-focused clean energy private equity fund), plans to exit the company by divesting its entire shareholding of 19.33 percent through the OFS.