Rikhav Securities Limited is coming up with an IPO consisting of a fresh issue of 83,28,000 shares worth INR 71.62 crores and an offer to sell 20,00,000 existing shares worth INR 17.20 crores. The company aims to fund working capital, purchase IT assets, and support general corporate purposes. 

Rikhav Securities IPO – Important Dates 

Read more about Rikhav Securities Limited IPO GMP

Rikhav Securities Limited IPO – Company Profile 

Rikhav Securities Limited, established in 1995, offers equity broking, trading, derivatives, commodities, IPO services, demat account management, and mutual fund advisory, ensuring seamless trade settlements as a SEBI-registered stock broker and clearing member. 

With extensive expertise, Rikhav Securities Limited offers market making, proprietary investments, financial product distribution, and wealth solutions, utilizing digital platforms and an expansive Authorized Persons network to serve clients across India efficiently. 

By leveraging advanced technology and diversifying its approach, Rikhav Securities Limited aims to expand its client base, boost trading volumes, enhance liquidity, and optimize operations to drive sustainable growth and strengthen its market presence. 

Rikhav Securities Ltd IPO Fundamental Analysis 

Rikhav Securities Limited’s financial analysis reveals a mixed performance. Revenue has shown strong growth, accompanied by increased equity, profitability, and earnings per share, reflecting improved financial health, more substantial liquidity, and a solid return on net worth. 

• Revenue Trend: The revenue increased from ₹4,946.76 lakhs in March 2023 to ₹10,416.17 lakhs in March 2024. The revenue for the current year’s 6-month period ending September 2024 is INR 9,285.81 lakh. 
• Equity and Liabilities: Equities have shown a consistent increase over the periods, reflecting potential growth and expansion. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹4,264.63 lakh in March 2023 to ₹5,037.32 lakh by September 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹6.38 in March 2023 to ₹16.81 by September 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has increased from 20.12% to 26.73%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 

Rikhav Securities IPO Financial Analysis 

Rikhav Securities Limited IPO Peer Comparison 

Rikhav Securities Limited, Alacrity Securities Limited, Angel One Limited, Share India Securities Limited, and Pune E-Stock Broking Limited show diverse financial metrics with varying earnings, profits, and market performance, highlighting their distinctive positions in the industry. 

Rikhav Securities Ltd IPO Objective 

The main objective of Rikhav Securities Limited is to secure funding for incremental working capital and capital expenditures, including the purchase of IT software, computers, and laptops to support its operational and technological growth. 

1. Funding their incremental working capital requirements: The company intends to utilize INR 46.00 Crores of the net proceeds for working capital requirements in Fiscal 2024-2025 and 2025-2026, with the balance met through working capital facilities and internal accruals. 

2. Funding of capital expenditure requirements of the company towards the purchase of IT Software, Computers and Laptops: The company plans to utilize INR 4.13 Crores from the net proceeds for capital expenditure towards purchasing IT software, computers, and laptops, and upgrading office equipment for better coordination and communication across locations. 

3. General corporate purposes: The company will deploy funds for general corporate purposes, including funding growth opportunities, meeting business expenses, servicing borrowings, brand building, handling exigencies, and other strategic initiatives. 

Rikhav Securities IPO Risks And Challenges 

Rikhav Securities Limited’s risk includes involvement in ongoing civil, criminal, tax, and regulatory proceedings, potential future liabilities, compliance with extensive regulations, conflicts of interest, and past fraudulent transaction issues, which could impact business operations. 

• The company, its directors, promoters, and group companies are involved in various civil, criminal, tax, and regulatory proceedings. Outstanding cases include taxation matters, with potential risks of future liabilities, depending on legal developments. 

• The company operates under extensive regulation by authorities like SEBI, AMFI, and exchanges. It must comply with various laws, regulations, and approvals, facing risks from conflicts of interest and potential legal or regulatory actions. 

• The company faces past regulatory issues, including involvement in fraudulent transactions and penalties. Although efforts are made to avoid such problems, it may still face litigation, which could divert focus and affect business operations. 

Rikhav Securities Ltd IPO – Industry & Market Potential 

The services industry drives over 80% of U.S. economic activity, contributing $13.3 trillion globally in 2020. Consulting, including energy and supply chain services, is a key growth sector, with markets projected to reach $1.17 trillion by 2024 and $24.19 billion by 2028. 

India’s services sector is set for substantial growth, driven by digital technologies, improved ease of doing business, and regulatory reforms. The IT services market is projected to reach $14.3 billion by 2023, with further expansion expected through 2025. 

The country’s digital economy is set to hit $1 trillion by 2025, with the software services industry expected to reach $1 trillion by 2030, driven by continued technological advancements, trade liberalization, and deregulation. 

Rikhav Securities Limited IPO – Type of Offer 

Rikhav Securities Limited plans a fresh issue of 83,28,000 shares, seeking INR 71.62 crores to  fund working capital, purchase IT assets, and support general corporate purposes. Additionally, the company proposes an offer to sell 20,00,000 existing shares worth INR 17.20 crores. 

1. Fresh Issue: The company will issue 83,28,000 new shares to raise capital, aiming to collect INR 71.62 crores. The company intends to utilize the proceeds from the fresh issue to fund working capital, purchase IT assets, and support general corporate purposes.
2. Offer for sale: Rikhav Securities Limited is offering to sell 20,00,000 existing shares worth INR 17.20 crores. 

Rikhav Securities IPO Offer Size 

The offer size of Rikhav Securities Limited is INR 88.82 crores, consisting of a fresh issue of 83,28,000 shares worth INR 71.62 crores and an offer to sell 20,00,000 existing shares worth INR 17.20 crores. The company aims to fund working capital, purchase IT assets, and support general corporate purposes. 

Rikhav Securities Limited IPO Allotment Structure 

Rikhav Securities Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 5,24,800 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 5,24,800 shares, are reserved for market makers. 

How to apply for the Rikhav Securities IPO?

To apply for the Rikhav Securities Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Rikhav Securities Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Rikhav Securities Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Rikhav Securities IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Rikhav Securities Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Rikhav Securities Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Rikhav Securities Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Rikhav Securities Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Rikhav Securities Ltd IPO Offer Registrar

The registrar for the Rikhav Securities Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Link Intime India Private Limited

C-101, 1st Floor, 247 Park, Lal Bahadur

Shastri Marg, Vikhroli (West) Mumbai,

Maharashtra – 400083, India.

Tel: +91 8108114949

Email: [email protected]

Website: www.linkintime.co.in 

Rikhav Securities SME IPO – FAQs