Rishabh Instruments IPO: Rishabh Instruments shares listed at 4.3% premium over IPO price on NSE and BSE amid a positive domestic market. The share debuted at Rs 460 on the BSE, as compared to the issue price of Rs 411. Rishabh Instruments shares’ grey market premium gained 13% on Tuesday, commanding a premium of Rs 61 over upper end of the IPO price, implying a listing price of Rs 502 per share.
Rishabh Instruments IPO subscription data
Rishabh Instruments IPO opened for subscription on 30 August and the issue was fully subscribed 31.65 times on the last day of subscription, helped by overwhelming participation from institutional investors. The Qualified Institutional Buyers (QIBs) category was subscribed 72.54 times, the portion for non-institutional investors received 31.29 times subscription and Retail Individual Investors (RIIs) quota got oversubscribed by 32.01 times. The employee portion was bid for 8.44 times.
“At the upper price band, the company is valued at 33.7x FY23 PE multiple and 3.5x FY23 P/BV on post-issue capital. The company doesn’t have any listed peers in India. Taking into consideration weak cash flows and low return ratios, the valuations are slightly stretched. However, being a unique business, the business may command a scarcity premium and long-term investors are recommended to subscribe to the issue. Listing gains are likely to remain tepid. We recommend subscribing with a long term horizon to the issue,” said SBI Securities.
About Rishabh Instruments
Rishabh Instruments is engaged in the business of manufacturing, design, and development of Test and Measuring Instruments and Industrial Control Products. The company provides cost-effective solutions to measure, control, record, analyze, and optimize energy and processes through an array of products. It also provides complete aluminum high-pressure die-casting solutions for customers requiring close tolerance fabrication (such as automotive compressor manufacturers and automation high precision flow meters manufacturers), machining, and finishing of precision components.