Rishabh Instruments IPO has attracted a lot of interest in the investors' community as the offer has received bids for 24.65 crore equity shares against issue size of 77.9 lakh shares, subscribing 31.65 times on September 1, the final day of bidding.
High networth individuals (HNIs) were aggressive among investors buying 31.29 times the portion set aside for them followed by qualified institutional buyers (QIB), who bid 72.54 times the allotted quota.
The Nashik-based company has reserved 50 percent of the offer size for QIB, 15 percent for HNIs (non-institutional investors) and the remaining 35 percent for retail investors, who have bought 8.44 times the reserved portion so far.
The offer was subscribed 2.46 times till the second day of bidding, August 31.
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The test and measuring instruments and industrial control products maker intends to raise Rs 490.78 crore via maiden public issue of 1.1 crore equity shares, at the upper end of the price band of Rs 418-441 per share.
The offer comprises a fresh issuance of shares worth Rs 75 crore which will be utilised for the expansion of Nashik manufacturing facility I, and general corporate purposes.
The IPO also includes an offer-for-sale (OFS) portion, i.e. 94.28 lakh shares valued at Rs 415.78 crore at the upper price band, which will be received by promoters and investor SACEF Holdings II.
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The offer will give a complete exit for SACEF, the subsidiary of South Asia Clean Energy Fund, an India-focused clean energy private equity fund, which currently holds 19.33 percent shares in the company.
With five manufacturing facilities in India and overseas, Rishabh Instruments is involved in designing, developing, manufacturing and supplying electrical automation devices; metering, control and protection devices; portable test and measuring instruments; and solar string inverters.
In addition, it also manufactures aluminium high-pressure die casting through its subsidiary, Lumel Alucast acquired in 2011-2012.
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