Rishabh Instruments IPO kicks off for subscription. Should you bid?
Ahead of the IPO opening, the company raised Rs 147 crore from anchor investors, where marquee funds, including HDFC MF, Nippon MF, Quant MF and Tata MF among others participated.
Analysts advised investors to subscribe to the issue for the long term as the company is backed by strong manufacturing capabilities, diverse product portfolio and solid financials.
«Rishabh Instruments stands as a global leader in manufacturing and supplier of analog panel meters and low voltage current transformers. We recommend a 'Subscribe' to the issue from the view of listing gains as well as for the long term,» said Hensex Securities.
The Rs 491 crore IPO comprises a fresh equity issue of Rs 75 crore and an offer for sale (OFS) of up to 94.28 lakh shares, which comes to about Rs 416 crore.
The issue is priced in the range of Rs 418-441, where investors can bid for a minimum of 34 shares in one lot and in multiples thereafter.
About 50% of the offer is set aside for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors.
Rishabh Instruments is a global energy efficiency solution company focused on electrical automation, metering and measurement, precision-engineered products etc., with diverse applications across industries including power, automotive and industrial sectors.
The company is a global leader in the manufacturing and supply of analog panel meters, and they are among the leading global companies in terms of manufacturing and supply of low voltage current transformers.
«At the upper price band, the company is valuing at P/E of 34.3x FY23 earnings with a market cap of Rs 1674 crore post issue of equity shares and return on net worth of 11.67%.
