IPO listed on 11 Sep'23
Rishabh Instruments Ltd
Minimum Investment
₹ 14,994 / 34 shares
Grey market premium
₹ 83 (19% premium)
Issue price
₹ 441
Listing price
₹ 460
Listing gains
19 (4%)
Listing on
September 11, 2023
Our Verdict:
Neutral
- Despite the impressive growth in the firm's revenue and net earnings, it is crucial to observe other financial metrics such as inconsistency in margins, huge working capital requirements and other concerns discussed in the “Risk Factors” section below.
- From a valuation standpoint too, the IPO appears to be fully priced at a PE multiple of 33.7x on post-issue capital. However, the grey market premium (GMP) for the issue, often used as a gauge for investor sentiment, indicates a premium listing. Therefore, risk-tolerant investors seeking moderate listing gains, may consider subscribing to this issue.
- However, investors who are interested in long-term capital appreciation should review the company's performance over the coming two quarters before making any investment commitments.
About the company
Founded in
6 Oct'82
Managing director
Narendra Goliya
- Rishabh Instruments Ltd is a global energy efficiency solution firm specializing in electrical automation, metering, and precision-engineered products for sectors like power and automotive.
- Their 145+ product lines cater to over 3,000 customers globally. In the past three years, they've supplied their products to 100+ countries through five sales offices and 339 authorized distributors as of May 31, 2023. Exports accounted for 66% of the total revenue in FY23.
STRENGTHS
- Industry Leadership: Rishabh Instruments has the distinction of being the first in India to holistically design, create, and deliver Solar String Inverters. It holds the top position in Electrical Transducers and Split Core Current Transformers. Moreover, it is second in Portable Test & Measurement, and third in the realm of Digital Panel Meters.
- Impressive Financial Performance: Between FY21-23, the company exhibited a remarkable growth with a CAGR of 20% in Revenue, 16% in EBITDA, and 18% in Net Profit.
- Favourable Debt:Equity Trend: The Debt:Equity ratio for the company has shown a declining trend, from 0.31 in FY21, dropping to 0.28 in FY22, and further reducing to 0.26 by FY23.
RISK FACTORS
- Fluctuating Financial Metrics: Rishabh Instruments showcased inconsistency in net profit margins across FY21 (8.93%), FY22 (10.35%), and FY23 (8.57%). A similar trend was seen in Return on Equity: FY21 (12.01%), FY22 (14.58%), and FY23 (12.39%).
- Heavy Reliance on Exports: Given that a significant portion of the company’s revenue is derived from exports, the weakening global macroeconomic scenario could adversely impact its financial performance.
- Unsecured Loans: As of May 31, 2023, its subsidiaries have unsecured loans totalling Rs 170.54 million, which are repayable on demand. Such demands could negatively impact cash flows.
- Significant capital requirement: High capital needs coupled with potential cash flow deficits could hinder debt payments and affect operational outcomes.
Issue details
Issue type
Mainstream
Issue size
₹ 490.78 crore
Fresh Issue
₹ 75 crore
OFS
₹ 415.78 crore
Price range
₹ 418 - 441
Lot size
34 shares
Issue Objective
Net proceeds from the fresh issue will be utilised towards:
- Financing the cost towards expansion of Nashik manufacturing facility; and
- General corporate purposes.
Dates
Bidding open
30 Aug'23
Bidding close
1 Sep'23
Allotment date
6 Sep'23
Refund date
7 Sep'23
Listing
11 Sep'23
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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