Rishabh Instruments IPO subscribed 31.65 times on final day

2 Sep 2023 , 09:56 AM

The Rishabh Instruments IPO has garnered significant attention within the investor community, with an overwhelming response on the final day of bidding, September 1. The offering received bids for 24.65 crore equity shares, a remarkable 31.65 times oversubscription, against the initial issue size of 77.9 lakh shares.

Among the investors, high net worth individuals (HNIs) exhibited considerable enthusiasm, subscribing 31.29 times their allocated portion. Qualified institutional buyers (QIBs) were equally active, bidding a staggering 72.54 times their allotted quota.

Rishabh Instruments, headquartered in Nashik, has structured the allocation with 50% reserved for QIBs, 15% for HNIs (non-institutional investors), and the remaining 35% for retail investors, who have shown strong interest by subscribing 8.44 times the allotted portion thus far.

The IPO had witnessed substantial interest even on the second day of bidding, August 31, when it was oversubscribed by 2.46 times.

This maiden public issue aims to raise Rs 490.78 crore through the issuance of 1.1 crore equity shares, priced at the upper end of the price band, which ranges from Rs 418 to Rs 441 per share. The IPO comprises a fresh issuance of shares worth Rs 75 crore, designated for the expansion of the Nashik manufacturing facility I, and for general corporate purposes.

Additionally, the IPO includes an offer-for-sale (OFS) segment, involving 94.28 lakh shares valued at Rs 415.78 crore at the upper price band. These shares will be divested by the company’s promoters and investor SACEF Holdings II.

The overwhelming response to the Rishabh Instruments IPO reflects the high level of investor confidence and interest in the company’s growth prospects and offerings.