Rishabh Instruments IPO

Rishabh Instruments IPO

The company is coming up with an IPO aggregating approximately INR 469-490 crores, consisting of a fresh issue of equity shares and an offer for sale. The fresh issue is for INR 75 crores, and the existing shareholders plan to sell 94,28,178 shares. 

Rishabh Instruments IPO – Important Details

Rishabh Instruments IPO Date 30th August 2023 to 1st September 2023
Rishabh Instruments IPO Listing Date 11th September 2023
Rishabh Instruments IPO Price INR 418 to 441 per share
Rishabh Instruments IPO Lot Size 34 shares
Rishabh Instruments IPO Total Issue Size Approx INR 490 crores
Rishabh Instruments IPO Basis of Allotment 6th September 2023
Rishabh Instruments IPO Initiation of Refunds 7th September 2023
Rishabh Instruments IPO Credit of Shares to Demat 8th September 2023
Rishabh Instruments IPO Issue Type Book Built Issue IPO
Rishabh Instruments IPO Listing At BSE, NSE

Rishabh Instruments Limited IPO – Company Profile

Rishabh Instruments is a global energy efficiency solution company focused on electrical automation, metering, measurement, precision-engineered products, etc, with diverse applications across industries, including power, automotive, and industrial sectors.

The company is a vertically integrated player involved in designing, developing, manufacturing, and supplying (a) electrical automation devices, (b) metering, control, and protection devices, portable test and measuring instruments; and (d) solar string inverters. In addition, we manufacture and supply aluminum high-pressure die casting through their Subsidiary, Lumel Alucast.

In 2023, the company received approval for financial incentives under the Maharashtra Electronics Policy, 2016, and Package Scheme of Incentive Policy, 2019. The company received an award for digitization and innovation in the year 2020.

Rishabh Instruments IPO – Fundamental Analysis

Revenue Growth: 

Rishabh Instruments has shown consistent revenue growth over the past three years, increasing from ₹3,899.56 million in 2021 to ₹5,695.40 million in 2023. This indicates a positive trend in their top-line performance.

Profitability: 

The company’s profitability, as measured by profit after tax, has also been upward, with a significant increase from ₹359.40 million in 2021 to ₹496.87 million in 2023. This indicates improving profitability.

Return on Net Worth (RoNW): 

RoNW, a measure of how effectively the company utilizes its equity, has shown fluctuations. It stood at 11.61% in 2021, increased to 13.82% in 2022, but decreased slightly to 11.67% in 2023.

Earnings Per Share (EPS): 

Diluted EPS has consistently increased from ₹9.32 in 2021 to ₹12.76 in 2023, reflecting improved earnings per share.

Net Asset Value (NAV) per Equity Share: 

NAV per equity share has steadily risen from ₹80.33 in 2021 to ₹109.98 in 2023, indicating an increase in the intrinsic value per share.

Asset and Liability Management: 

Total assets have grown from ₹5,119.70 million in 2021 to ₹6,489.28 million in 2023, indicating an increased asset base. Liabilities have also increased, reflecting a balance between assets and liabilities.

Summary: 

Rishabh Instruments has demonstrated consistent revenue and profit growth over the past three years, which is a positive sign. However, the fluctuation in RoNW and a slight decline in 2023 should be considered. Investors should assess the company’s growth prospects and risk factors before investing in the IPO.

Rishabh Instruments IPO Financial Information

Particular As at 31 March 2021 As at 31 March 2022 As at 31 March 2023
Revenue (₹ in Million) 3,899.56 4,702.50 5,695.40
Equity (₹ in Million) 3,021.25 3,460.98 4,087.48
Expenses (₹ in Million) 5,190.75 4,206.94 3,567.29
Profit and Loss After Tax (₹ in Million) 359.40 496.52 496.87
RoNW (%) 11.61% 13.82% 11.67%
Diluted EPS only (₹) 9.32 12.89 12.76
NAV per Equity Share (₹) 80.33 93.38 109.98
Total Assets (in million) 5,119.70 5,638.92 6,489.28
Total Liabilities (in million) 2,098.45 2,177.94 2,401.80

Rishabh Instruments Ltd IPO Peer Comparison

There are no comparable listed companies in India or globally that engage in a business similar to that of the Company. Accordingly, it is not possible to provide an industry comparison in relation to the company.

Rishabh Instruments IPO Objective

Rishabh Instruments Limited’s IPO intends to raise capital for expanding its manufacturing facility with INR 6.28 crores and allocate the remaining funds to general corporate purposes and strategic initiatives.

  1. Expansion of manufacturing facility: The company has two manufacturing units in Nashik-Nashik Manufacturing Facility I and Nashik Manufacturing Facility II. The company aims to expand the existing capacity at Facility I. The company aims to utilize INR 6.28 crores to expand the existing facility.
  2. General corporate purpose: The company plans to deploy the balance funds towards the general corporate purpose, which is not limited to meeting expenses incurred in the ordinary course of business such as strategic initiatives, including the advancement of information technology, meeting future branch and business expansion, etc.

Rishabh Instruments Limited IPO Risks And Challenges

Rishabh Instruments IPO faces semiconductor shortage risks and international trade challenges, with 65% of revenue from exports and semiconductor supply chain vulnerabilities potentially impacting operations and financial performance.

  • Shortage of semiconductors: The semiconductor industry is subject to periodic shortages due to increased demand, supply chain disruptions, and capacity constraints. The global semiconductor supply chain is complex and interconnected. Disruptions at any stage due to natural disasters, geopolitical tensions, or trade restrictions can significantly impact the availability and delivery of semiconductors.
  • Risk of international trade: Although no single country accounts for more than 20% of global sales, a significant portion of the revenue is generated from the sale of exports. As of 31st March 2023, almost 65% of the revenue was from export sales. To the extent that it cannot manage the global operations and risks effectively, the company’s financial condition, results of operations, and prospects may be adversely affected.

Rishabh Instruments IPO – Industry & Market Potential

Digitalization is another growth driver for India’s economy. Greater adoption of 5G services, increasing internet and smartphone penetration, availability of digital infrastructure facilities, and growing digital literacy is improving the scope of the country’s digital economy and leading to the growth of emerging sectors such as FinTech, EduTech, AgriTech, and MedTech. 

Digitalization will also accelerate the growth of India’s cashless economy, which will help streamline financial services through better efficiency and productivity.

The Indian automotive industry will join forces on sustainability initiatives. Automakers are creating separate electric vehicle (EV) business units to be prepared for higher demand. India will increase charging infrastructure and introduce more safety regulations and standards. Frost & Sullivan estimates that electric 4-wheeler sales will increase at a CAGR of 75.5% from 2019 to 2025, and electric 2-wheeler sales at a CAGR of 87.3% in the same period.

Rishabh Instruments IPO – Type of Offer

The Rishabh Instruments IPO comprises a fresh issue to raise INR 75 Crore for facility expansion and an offer for sale (OFS) of 94,28,178 shares, totaling approximately INR 490 Crore.

  •     Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 75 Crore. This fund will be used to expand the existing manufacturing facility.
  •     Offer For Sale (OFS): Existing shareholders will sell 94,28,178 shares. 

 Therefore, the total money expected to be raised through this IPO is INR 490 cores approximately.

Rishabh Instruments IPO Offer Size

The company is coming up with an IPO aggregating approximately INR 469-490 crores consisting of both fresh issue of equity shares as well as an offer for sale. The fresh issue is for INR 75 crores, and the existing shareholders are planning to sell 94,28,178 shares. 

Rishabh Instruments Ltd Ipo Allotment Structure

The IPO allotment structure for Rishabh Instruments Ltd allocates 50% of shares to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 35% to Retail Individual Investors (RIIs).

  •  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.

How to apply for a Rishabh Instruments Ltd Ipo?

To apply for the Rishabh Instruments Ltd IPO through Alice Blue, you would typically follow these steps:

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

  1. Check for IPO Details: Once your account is active, you can check for the Rishabh Instruments Ltd 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 Rishabh Instruments Ltd IPO at Alice Blue in just a few clicks!

Check Allotment Status: Post 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 to Check Rishabh Instruments Limited IPO Allotment Status on Alice Blue?

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

 Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

  1. 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.
  2. 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.
  3. Select the Rishabh Instruments Ltd 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 Rishabh Instruments Ltdl IPO.
  4. 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, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

 Apart from Alice Blue, there are other ways to check the allotment status of the Rishabh Instruments Ltd IPO:

  • Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Rishabh Instruments Ltd IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
  • NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.

 Please note that the allotment status will only be availabl