Rishabh Instruments Limited IPO has two components – a “Fresh Issue” of equity shares aggregating up to Rs. 75 crores. The second part is an “Offer for Sale” of equity shares aggregating up to Rs. 415.78 crores of face value of Rs. 10 each.
Combined the total IPO Issue size is Rs. 490.78 crores. The IPO opened on 30th August 2023 for subscription and closes on 1st September 2023.
You can apply using ASBA (net banking) or using the UPI method in Rishabh Instruments IPO. Here you can find both the IPO bidding process in detail.
In the article, you will find all the relevant details that will help you make informed investment decisions in Rishabh Instruments Limited IPO.
Rishabh Instruments Limited IPO Details
| Particulars | Details |
| IPO Opening date | 30th August 2023 |
| IPO Closing date | 1st September 2023 |
| IPO Price | Rs. 418 to Rs. 441 |
| Lot size | 34 shares |
| Issue size | Rs. 490.78 Cr |
| No. of fresh shares | 1,700,680 shares aggregating to Rs. 75 crores |
| Offer for Sale | 9,428,178 shares aggregating to Rs. 415.78 crores |
| Listing on | BSE and NSE |
You can check here the other upcoming IPOs in 2023.
Rishabh Instruments Limited IPO Timetable
| Particulars | Details |
| IPO Opening date | 30th August 2023 |
| IPO Closing date | 01st September 2023 |
| Basis of Allotment date | 06th September 2023 |
| Credit of Share | 08th September 2023 |
| Listing date | 11th September 2023 |
Rishabh Instruments Limited GMP
In the past 4-5 days GMP data collected from various sources like reputed financial websites, news channels, stockbrokers and IPO blogs is under.
Grey Market Price (GMP) provides you with a reasonable indication of price upon listing. You should take precautions because GMP is not an official price and only an indicative value.
| Date | GMP |
| 30th August 2023 | Rs. 83 |
| 29th August 2023 | Rs. 75 |
| 28th August 2023 | Rs. 30 |
Rishabh Instruments Limited Issue Size
Total Issue Size = Rs. 490.78 crores.
Of which the Fresh Shares are for an aggregate amount of upto Rs. 75 Crs. The OFS portion of IPO is for an aggregate amount of Rs. 415.78 crores.
Rishabh Instruments Limited Overview
The company is a global energy efficiency solution provider. It was founded in 1982 by Narendra Joharimal Goliya.
Rishabh Instruments is focused on electrical automation, metering and measurement, precision-engineered products, solar string inverters and aluminum high-pressure die casting.
The company is a global leader in the manufacturing and supply of analog panel meters and is among the leading global companies in terms of manufacturing and supply of low-voltage current transformers.
Rishabh Instruments has a product portfolio of over 145 product lines and 0.13 million stock-keeping units as of May 31, 2023.
The products have diverse applications across industries including power, automotive and industrial sectors.
Rishabh manufactures products in-house from its five manufacturing facilities – two in India, two in Poland and one in China.
Rishabh Instruments supplies a wide range of electrical measurement and process optimization equipment and is engaged in designing, developing and manufacturing, and sale of devices significantly under our own brand across several sectors
Industry Overview
The global electrical automation market was valued at USD 147.5 billion in 2022 and is expected to grow at a CAGR of 7.8% to reach USD 215.1 billion by 2027.
Asia-Pacific is the fastest-growing region and is expected to become the largest by 2027. The market push is expected to come from new building automation facilities, greenfield factories, and digitization initiatives in brownfield factories.
The Indian Electrical Automation market was valued at USD 6367.8 million in 2022 and is forecasted to grow at a CAGR of 9% to reach USD 9802.6 million by 2027.
China’s weakening economic projections and ongoing trade wars will create opportunities for India to develop its cutting-edge technologies. By attracting investments from companies looking to diversify their manufacturing and supply chains away from China, India has more room to negotiate favorable trade agreements with other countries and strengthen its global influence.
In India, Automotive and transportation, food and beverage, FMCG, chemicals, and textiles are major end users. Steel, semiconductor, and defense growth is less due to the muted economic situation across the globe.
Building automation and data centers are the emerging end-user segments.
Rishabh Instruments Limited Subscription Data
Subscription data shows the number of times the IPO is subscribed overall and also under each category. The day-wise subscription data is below.
| Date | QIB | NII | Retail | Total |
| Day – 1 30th August 2023 | 0.01 | 1.25 | 0.96 | 0.75 |
| Day – 2 31st August 2023 | 0.22 | 4.65 | 2.79 | 2.46 |
| Day – 3 01st September 2023 | 72.54 | 31.29 | 8.44 | 31.65 |
Rishabh Instruments Limited Promoter Details
Narendra Joharimal Goliya is the promoter of the company. He holds 16,262,098 equity shares, which constitute 44.85% of the issued, subscribed and paid-up equity share capital of the company.
The promoters hold 12,987,902 representing 35.82% of the share capital. The promoters and promoter group collectively hold 29,250,000 Equity Shares, equal to 80.67% of the pre-issue shares issued.
Rishabh Instruments Limited Financials
Key financials of Rishabh Instruments Limited Ltd for the last 3 completed financial years is under. These include the fiscal years FY23, FY22 and FY21.
| Details | FY- 2023 | FY- 2022 | FY- 2021 |
| Total Assets | Rs. 648.92 cr | Rs. 563.89 cr | Rs. 511.97 cr |
| Total Income | Rs. 579.78 cr | Rs. 479.91 cr | Rs. 402.49 cr |
| Profit After Tax | Rs. 49.68 cr | Rs. 49.65 cr | Rs. 35.94 cr |
| Net Worth | Rs. 408.74 cr | Rs. 346.09 cr | Rs. 302.12 cr |
| Other Equity (including retained earnings) | Rs. 360.96 cr | Rs. 315.04 cr | Rs. 273.81 cr |
| Total Borrowing | Rs. 102.85 cr | Rs. 96.56 cr | Rs. 91.95 cr |
The total income of Rishabh Instruments Limited has grown in the last three years from Rs. 402 cr to Rs. 579 cr. The PAT has also grown marginally from Rs. 35.94 cr to Rs. 49.68 cr during the same period.
The net worth grew from Rs. 302 cr in FY 2021 to Rs. 408 cr in 2023. In the past three years, Rishabh Instruments Limited’s long-term borrowings has increased marginally from Rs. 91.95 cr to 102.85 cr.
Rishabh Instruments Limited Peer Comparison
There are no comparable listed companies in India or globally that engage in a business similar to that of Rishab Instruments Limited.
Accordingly, the data regarding peer comparison is not possible to provide in relation to the Company.
Rishabh Instruments Limited Objects of the Issue
Rishabh Instruments Limited proposes to utilize the Net Proceeds from the Issue for –
1. Financing the expansion of Nashik Manufacturing Facility
The financing will happen stage-wise – Rs. 44 cr in FY 2024 and the rest IPO amount (net, i.e. after deducting issue expenses) will be deployed in FY 2025.
The money is intended to be used for
- Building & Civil Work
- Plant & equipment
- Utilities
2. For General corporate purposes,
The rest amount will be spent on general corporate purposes subject to such utilization not exceeding 25% of the Net Proceeds, in compliance with the SEBI ICDR Regulations.
Should You Invest in Rishabh Instruments Limited IPO?
Rishab Instruments is a global leader in the manufacturing and supply of analog panel meters. It has five manufacturing facilities – two in India, two in Poland and one in China
Key risks to consider are –
- Rs. 415 Cr of OFS is higher than the fresh issue size of 75 Cr. The company will not receive any proceeds from the Offer for Sale
- ~60% of units manufactured in Poland
- No long-term contracts with customers
- 2 immediate relatives of the Promoter (part of the Promoter Group) have not provided consent
Rishab Instruments has the ability to drive technology and innovation through advanced research and development capabilities.
It is a Global engineering solution provider operating in large addressable markets and well positioned to benefit from mega industrialization trends. Vertically integrated operations, backed by strong manufacturing capabilities.
The company has a diversified product portfolio and a wide customer base.
Rishab Instruments has a track record of successful integration of acquired businesses or entities across geographies.
On the financial side, the total income of Rishabh Instruments Limited has grown in the last three years from Rs. 402 cr to Rs. 579 cr. The PAT has also grown marginally from Rs. 35.94 cr to Rs. 49.68 cr during the same period.
The net worth grew from Rs. 302 cr in FY 2021 to Rs. 408 cr in 2023. In the past three years, Rishabh Instruments Limited’s long-term borrowings has increased marginally from Rs. 91.95 cr to 102.85 cr.
