The initial public offering (IPO) of Rishabh Instruments Limited, an energy efficiency solutions company, opens for subscription today. The company raised around Rs 147 crore from anchor investors on 29 August. It had allotted 33,38,656 shares to anchor investors at a price of Rs 441 per share, the company informed stock exchanges.
"The IPO committee of the company at its meeting held on Tuesday, August 29, 2023 and the selling shareholders, in consultation with book running lead managers to the offer, have finalised allocation of 33,38,656 equity shares to anchor investors at anchor investor allocation price of Rs 441 equity share (including share premium of ₹431 per equity share)," the company said in an exchange filing.
Advertisement
Here are important details to know before you subscribe to the IPO:
Key Dates
The IPO opens for subscription today, 30 August. The book-built issue will close on Friday, 1 September. The allotment of shares will be finalised on Wednesday, 6 September. The company will start refunds on Thursday, 7 September. The shares will be credited to the respective demat accounts of allottees on 8 September. Rishabh Instruments shares are likely to be listed on the BSE and NSE on Monday, 11 September.
Issue Size
The Nashik-based company aims to raise Rs 490.78 crore from the public issue of 1.11 crore equity shares, at the upper price band. The IPO comprises a fresh issue of equity shares worth Rs 75 crore and an offer-for-sale (OFS) of up to 94.28 lakh equity shares.
Advertisement
Promoters Asha Narendra Goliya, Rishabh Narendra Goliya, and Narendra Rishabh Goliya (HUF) will offload 24.17 shares through OFS. Investor SACEF Holdings II will be selling its entire 19.33 per cent stake through OFS.
Lot Size
Retail investors can apply for a minimum of 34 equity shares and in multiples thereafter. Investors can make a minimum investment of Rs 14,994 for one lot. The maximum application size would be Rs 1,94,922 for 442 shares, or 13 lots.
High-net-worth individuals (HNIs) with an investment threshold between Rs 2 lakh to Rs 10 lakh can buy a minimum of 476 shares for Rs 2,09,916 and a maximum of 2,244 shares for Rs 9,89,604.
Grey Market Premium (GMP)
According to topsharebrokers.com, Rishabh Instruments IPO is commanding a premium of Rs 83 per share on Wednesday. Considering the upper end of the price band and current GMP, the company is expected to list at Rs 524 per share, which is an 18.82 per cent premium to the issue price.
Objectives of Issue
The net proceeds from the IPO will be used to finance the cost of expansion of Nashik Manufacturing Facility I and general corporate purposes, as stated in its Red Herring Prospectus (RHP).
Founded in 1982, Rishabh Instruments is an energy efficiency solutions company involved in the business of designing, developing, manufacturing, and supplying electrical automation devices, metering, control, and protection devices, portable tests and measuring instruments, and solar string inverters.
Advertisement
The company has five manufacturing units: two in India, two in Poland, and one in China.
For FY23, the company reported solid topline growth, with revenue from operations increasing 21.1 per cent year-on-year to Rs 569.5 crore. However, profit stood almost flat at Rs 49.69 crore compared to Rs 49.65 crore in the previous financial year, impacted by a weak operating margin due to high input costs and employee expenses.
