IPOs (Initial Public Offerings) are one of the most popular investment options for retail investors to grow their capital with time. On that note, Rishabh Instruments Limited, a provider of energy solutions, has received a green signal from SEBI to launch its IPO.
As an investor, you must go through this company’s Draft Red Herring Prospectus to analyse whether its IPO is fit for your needs. Here are some important details from the DRHP of Rishabh Instruments Limited to speed up your decision-making process.
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IPO Details
Rishabh Instruments IPO opens on Wednesday, August 30, 2023, and closes on Friday, September 1, 2023. The price band of IPO shares fixed by the company is Rs. 418 to Rs. 441 for each equity share. The table below carries all the essential details about Rishabh Instruments IPO:
| IPO Open Date | August 30, 2023 |
| IPO Close Date | September 1, 2023 |
| Issue Type | Book-built IPO |
| Face Value | Rs. 10 |
| Price Band | Rs. 418 to Rs. 441 per equity share |
| Minimum Lot Size | 34 shares each lot |
| Total Issue Size | 11,128, 858 shares (Rs. 490.78 crore) |
| Fresh Issue | 1,700,680 shares (Rs. 75 crore) |
| Offer for Sale | 94,28,178 shares (around Rs. 415.78 crore) |
| Listed on | BSE and NSE |
About the Company
Rishabh Instruments Limited focuses on manufacturing and delivering electrical automation and measurement solutions and precision engineering products.
This company was founded by Narendra Johrimal Goliya in 1982. With academic expertise in science and technology, Mr. Goliya is the present chairman and promotor of Rishabh Instruments Limited. Their operation has expanded to seven foreign subsidiaries. Three of these are in Poland, one in the USA, one in the UK, one in Cyprus and one in China.
Rishabh Instruments Limited specialises in providing customers with cost-effective instruments to measure, record, analyse and control energy. The company has expertise in bringing to the table aluminium die-casting solutions for tolerance fabrication. They are also one of the leading companies globally in manufacturing and supply of low-voltage current transformers.
Their usage of advanced technology and R&D to manufacture and develop specialised equipment largely contributes to its brand growth among customers. The R&D centres located in India are appreciated and looked up globally. Besides India, Rishabh Instruments Limited also has R&D centres in China and Poland with an overall 93 staff as of October 31, 2022.
Rishabh Instruments Limited hosts a total of 5 manufacturing facilities. 2 of them are in India, 2 in Poland and 1 in China. They also have testing laboratories that test and certify all of the products that these 5 facilities manufacture. Their products have received different certifications like UCKA, CE, and ROHS.
Additional Read: How does an IPO work?
IPO Tentative Timetable
Take a look at the table below for the important dates associated with the Rishabh Instrument Limited IPO:
| IPO Open Date | Wednesday, 30 August 2023 |
| IPO Close Date | Friday, 1 September 2023 |
| Basis of Allotment | Wednesday, 6 September 2023 |
| Initiation of Refunds | Thursday 7 September 2023 |
| Credit of Shares to Demat accounts | Friday, 8 September 2023 |
| Listing Date | Monday, 11 September, 2023 |
| Cut-off time for confirmation of UPI mandate | 1 September 2023, 5 pm |
IPO Lot Sizes
Important details about IPO lot sizes are provided below:
| Applications | Lots | Shares | Amounts |
| Retail (min) | 1 | 34 | Rs. 14,994 |
| Retail (max) | 13 | 442 | Rs. 1,94,922 |
| S-HNI (min) | 14 | 476 | Rs. 2,09,916 |
| S-HNI (max) | 66 | 2244 | Rs. 9,89,604 |
| B-HNI (min) | 67 | 2278 | Rs. 10,04,598 |
Company Financials
Here are the important financial metrics of Rishabh Instruments Limited (all values are in Rs. millions):
| Parameters as of | 31st March 2022 | 31st March 2021 | 31st March 2020 |
| Total Assets | 5,638.92 | 5,119.70 | 4,892.99 |
| Total Liabilities | 2,177.94 | 2,098.45 | 2,039.39 |
| Total Revenue | 4,799.15 | 4,024.92 | 4,093.74 |
| Total Expense | 4,206.94 | 3,567.29 | 3,690.70 |
| Profit after Tax | 496.52 | 359.40 | 315.47 |
| EBITDA | 826.32 | 700.21 | 683.37 |
Strengths
Here are a few noteworthy strengths of Rishabh Instruments Limited which will help your decision-making process:
- NABL-accredited test labs to conduct comprehensive product testing and quality checks before supplying.
- Major focus on R&D to manufacture premium-class equipment
- A well-recognised brand image with the help of its two brands Rishabh and Lumel
- Takes compliance for all its products by testing them for various globally accepted certificates
- Holds an extensive network of sales partners in India and globally
Risks
Besides the above strengths, you must consider the following risk factors that might affect the operations of Rishabh Instruments Limited:
- The business is highly dependent on its manufacturing facilities. Any mishap, slowdown or shutdown in their manufacturing operation can adversely affect its business.
- Most of its customers have short-term relationships with the company. Any change in product quality or pricing might make them shift to a new brand.
- Failure to implement effective strategies for business expansions and customer base growth can adversely affect this company’s cash flow.
Summary
This was a basic overview of Rishabh Instruments Limited and its upcoming IPO. This blog will help you decide whether or not to invest in their upcoming IPO.
Rishabh Instruments Limited is an electrical automation and metering solutions provider. The company aims to raise around Rs. 490.78 crore via a fresh issue of Rs. 75 crore and an OFS of 9.43 million shares.
The company will use its proceeds worth Rs. 59.50 crore from the fresh issue to expand its manufacturing facility in Nashik.
