Nashik-based Rishabh Instruments, a prominent manufacturer of test and measuring instruments and industrial control products, has experienced remarkable investor enthusiasm during its recent initial public offering (IPO). The closing day of bidding, September 1, 2023, witnessed an overwhelming response, with bids received for 24.65 crore equity shares, significantly surpassing the issue size of 77.9 lakh shares. This extraordinary level of interest resulted in a remarkable oversubscription rate of 31.65 times.
Notably, high-net-worth individuals (HNIs) displayed notable interest by subscribing 31.29 times the allocation designated for them. Simultaneously, qualified institutional buyers (QIBs) demonstrated strong enthusiasm by bidding at a substantial 72.54 times the allotted quota.
Rishabh Instruments had allocated 50 percent of the offer size to QIBs, 15 percent to HNIs (non-institutional investors), and the remaining 35 percent to retail investors. Retail investors exhibited substantial interest by subscribing 8.44 times the reserved portion by the closing day.
The IPO had already shown robust demand, with a subscription rate of 2.46 times by the conclusion of the second day of bidding on August 31.
Rishabh Instruments aims to raise Rs 490.78 crore through its inaugural public issue, offering 1.1 crore equity shares within a price range of Rs 418-441 per share. The IPO includes a fresh issuance of shares valued at Rs 75 crore, primarily intended for expanding its Nashik manufacturing facility and supporting general corporate purposes.
Additionally, the IPO features an offer-for-sale (OFS) component comprising 94.28 lakh shares, valued at Rs 415.78 crore at the upper price band. These shares will be divested by the company's promoters and investor SACEF Holdings II. This OFS marks a complete exit for SACEF, a subsidiary of the South Asia Clean Energy Fund, which currently holds a 19.33 percent stake in Rishabh Instruments.
Rishabh Instruments, with a presence in India and overseas through five manufacturing facilities, specializes in designing, developing, and manufacturing electrical automation devices, metering, control and protection devices, portable test and measuring instruments, and solar string inverters. The company also engages in aluminum high-pressure die casting through its subsidiary, Lumel Alucast, which it acquired in 2011-2012.
Notably, high-net-worth individuals (HNIs) displayed notable interest by subscribing 31.29 times the allocation designated for them. Simultaneously, qualified institutional buyers (QIBs) demonstrated strong enthusiasm by bidding at a substantial 72.54 times the allotted quota.
Rishabh Instruments had allocated 50 percent of the offer size to QIBs, 15 percent to HNIs (non-institutional investors), and the remaining 35 percent to retail investors. Retail investors exhibited substantial interest by subscribing 8.44 times the reserved portion by the closing day.
The IPO had already shown robust demand, with a subscription rate of 2.46 times by the conclusion of the second day of bidding on August 31.
Rishabh Instruments aims to raise Rs 490.78 crore through its inaugural public issue, offering 1.1 crore equity shares within a price range of Rs 418-441 per share. The IPO includes a fresh issuance of shares valued at Rs 75 crore, primarily intended for expanding its Nashik manufacturing facility and supporting general corporate purposes.
Additionally, the IPO features an offer-for-sale (OFS) component comprising 94.28 lakh shares, valued at Rs 415.78 crore at the upper price band. These shares will be divested by the company's promoters and investor SACEF Holdings II. This OFS marks a complete exit for SACEF, a subsidiary of the South Asia Clean Energy Fund, which currently holds a 19.33 percent stake in Rishabh Instruments.
Rishabh Instruments, with a presence in India and overseas through five manufacturing facilities, specializes in designing, developing, and manufacturing electrical automation devices, metering, control and protection devices, portable test and measuring instruments, and solar string inverters. The company also engages in aluminum high-pressure die casting through its subsidiary, Lumel Alucast, which it acquired in 2011-2012.
