Rishabh Instruments holds promise in energy efficiency
Rishabh Instruments, a maker of a wide range of electrical measurement instruments and process optimisation equipment, plans to raise ₹491 crore from an initial public offer. It comprises a fresh issue of ₹75 crore that would be used for capacity expansion at its Nashik facility and an offer of sale of ₹415 crore from promoters and investors.
The promoter holding would drop to 70.6% post-IPO from 80.67%.
Long-term investors may consider the IPO owing to earnings visibility in the energy efficiency product segment. The company's ability to develop products in lower lead time, the potential for margin expansion, and likely incremental revenue from electronic manufacturing services are draw cards for the IPO.
Business model: Nasik-based Rishabh, promoted by an IIT alumnus, manufactures a wide range of cost-effective products to measure, record, analyse and optimise energy and processes to improve energy efficiency.
The company manufactures products such as analogue panel meters, transducers, temperature controllers, and power quality recorders. The company is a global leader in the manufacturing and supply of analogue panel meters.
The company's products are used in industrial (FMCG, pharmaceutical, cement, steel, railways), power (generation, transmission and distribution, renewable energy, oil and gas), OEM industries (transformer, motor, cable and special machine manufacturers) and new applications (data centre, laboratories, semiconductors, consumer electronics, and building automation). It has manufacturing units in India, Poland and China and derives 66% of revenue from its overseas operations.
Read more on economictimes.indiatimes.com
