Rishabh Instruments IPO: Rishabh Instrument IPO opened for public subscription on Wednesday, August 30, and will close on Friday, September 1. The company collected Rs 147.23 Crore from the Anchor investors ahead of the public issue. The price band for its public issue at Rs 418-441 per equity share of face value Rs 10 each.
The IPO comprises a fresh issue of 1,700,680 shares up to Rs 75 Crore and an offer for sale (OFS) of 9,428,178 shares up to Rs 415.78 Crore. The shares are likely to get credited on September 8 and listed on the stock exchanges on September 11, according to reports.
Rishabh Instruments is a global energy efficiency solution company focused on electrical automation, metering, and measurement, precision engineered products with diverse applications across industries including power, automotive, and industrial sectors. The company supplies electrical measurement and process optimization equipment and is engaged in designing, developing manufacturing, and sale of devices under its brand across several sectors.
Should you apply for the Rishabh Instrument IPO?
Mehta Equities: Subscribe with Risk
“By looking at the financials historically, Rishabh has delivered a healthy growth in revenue from operation of 20%/21% in FY2022/23 and a subdued bottom-line of 0.07% in FY 2023. On Valuation parse at an upper price band of ₹ 441/- and based on annualized earnings and fully diluted post-IPO paid-up capital, the issue is asking for a Market Cap of ₹ 1674 Cr with P/E of 33.69x on consolidated basis, which seems the issue is fully priced-in looking at growth and expected outlook. Given the company’s export oriented business which is almost 66% of revenue and its strong brand in niche products segment demand, we are inclined to recommend risk-taking investors to “Subscribe with Risk” to the IPO,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Anand Rathi: Subscribe
“At the upper price band, the company is valuing at P/E of 34.3x FY23 earnings with a market cap of ₹16,740 million post issue of equity shares and return on net worth of 11.67%. We believe that issue is fairly priced,” said brokerage firm Anand Rathi.
(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)