Stock broker Rikhav Securities IPO closed with 285.33 subscription; GMP soars

Rikhav Securities IPO

Brokerage bouse Rikhav Securities' maiden public issue closed with a massive 285.33 subscription on January 17. The offer was opened on January 15.

Investors applied for 211.37 crore equity shares against the offer size of 74.08 lakh shares via 5.83 lakh applications, the subscription data available on the BSE showed.

All investors showed strong interest in the Rikhav Securities IPO with non-institutional investors being at the top with 455.33 bids against their reserved portion. Retail investors picked 251.36 times their allotted quota, while the portion set aside for qualified institutional buyers was subscribed 170.92 times.

The demand also seems to be strong in the grey market, an unofficial market wherein the IPO shares can be bought and sold till the listing, as Rikhav Securities shares traded at around 90 percent premium over the upper price band, according to the market observers.

Click Here To Read All IPO News

The company will finalise the IPO share allotment by January 20, while investors can start trading in its shares on the BSE SME effective January 22.

Rikhav Securities that operates in derivative and commodity segments approached capital markets to raise Rs 88.82 crore via initial share sale which consists of fresh issuance of 83.28 lakh shares worth Rs 71.62 crore and an offer-for-sale of 20 lakh shares worth Rs 17.2 crore by the existing shareholders.

The price band for the offer was Rs 82-86 per share.

The fresh issue funds will be spent mainly for the incremental working capital requirements, and purchase of IT software, computers and laptops.

Smart Horizon Capital Advisors is the merchant banker handling the public issue.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.