Rishabh Instruments IPO opens on Aug 30, price band set at Rs 418-441 a share

At the higher end of the price range, the company is set to raise approximately Rs 491 crore through the IPO, resulting in a valuation of Rs 1600 crore.

The public issue of Nashik-based Rishabh Instruments has set its price band at Rs 418-441 a share. The company had earlier said its IPO will open on August 30 for subscription and close on September 1. The anchor book will open on August 29. The basis of allotment will be finalised on September 6, while the credit of shares will be on September 8. The stock will be listed on exchanges on September 11.

The company aims to raise around Rs 75 crore from a fresh issue and an offer-for-sale (OFS) of up to 9.43 million shares by its existing shareholders and promoters. At the higher end of the price range, the company is set to raise Rs 491 crore through the IPO, resulting in a valuation of Rs 1,600 crore.

The OFS comprises up to 1.5 million shares by Asha Narendra Goliya, up to 4 lakh shares by Rhishabh Narendra Goliya, up to 5.18 lakh shares by Narendra Rishabh Goliya HUF and up to 7.01 million shares by SACEF Holdings II.

DAM Capital Advisors Ltd, Mirae Asset Capital Markets India and Motilal Oswal Investment Advisors are the lead managers to the issue.

The company is an integrated player 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 manufactures and supplies aluminium high-pressure die-casting through its arm, Lumel Alucast. It has two manufacturing facilities in Nashik and has a total installed capacity of 4.31 million units per annum as of March 2023.

The proceeds from the issue worth Rs 59.50 crore will be used to expand its manufacturing facility to build and strengthen core capabilities and boost manufacturing capacity, according to DRHP.

For FY23, the company's revenue from operations was Rs 569.54 crore against Rs 470.25 crore a year ago. Net profit for the period was Rs 49.69 crore versus Rs 49.65 crore.