Rikhav Securities IPO Day 3: 300x Subscription, GMP Soars Close To 100%; Check Allotment Date

The initial public offering of Rikhav Securities Ltd. that opened for subscription on Wednesday will close for bidding on Friday, Jan. 17.

The SME issue booked over 36 times on Thursday and over 8 times on Wednesday, led by demand from retail investors. On its final day, the IPO has been booked over 300 times already.

The book-built offer worth Rs 88.82 crore consists of both fresh issuance and offer-for-sale components.

Here's all you need to know about Rikhav Securities SME IPO as bidding on Day 3 comes to an end.

The Rs 88.82-crore Rikhav Securities IPO combines a fresh issue of 83.28 lakh shares aggregating to Rs 71.62 crore and an offer for sale of 20 lakh shares worth Rs 17.20 crore.

Rikhav Securities IPO price band is set at Rs 82 to Rs 86 per share.

Retail investors have to apply for at least 1,600 shares in one lot of the Rikhav Securities IPO. This takes the minimum investment amount to Rs 1,37,600 for a single lot application.

As per the company's RHP document, of the 1,03,28,000 shares offered:

• 19,55,200 (18.93%) is reserved for Qualified Institutions

• 14,80,000 (14.33%) is reserved for Non-Institutional Buyers

• 34,48,000 (33.38%) is reserved for Retail Investors

• 29,20,000 (28.27%) is reserved for Anchor investors.

The company has appointed Link Intime India Pvt. as the registrar for the issue, while Smart Horizon Capital Advisors Pvt. will act as the book-running lead manager. Shreni Shares Ltd. is the market maker for Rikhav Securities IPO.

The company hopes to raise nearly Rs 90 crore from the primary markets.

The IPO has been subscribed 304.18 times as of 4:29 p.m. on Friday, as per the market tracking site Chittorgarh.

• Qualified Institutions: 170.76 times

• Non-Institutional Buyers: 616.23 times

• Retail Investors: 245.9 times

Subscription status will be updated at regular intervals.

Rikhav Securities IPO GMP today is Rs 85 as of 2:57 p.m. on Jan. 17. According to IPO tracking site Investorgain.com, this indicates that Rikhav Securities share price was trading at a premium of Rs 85 in the grey market.

Considering the IPO price band's upper end and the grey market's current premium, the estimated listing price of Rikhav Securities shares is Rs 171 per share, which is 98.84% higher than the IPO price of Rs 86.

The GMP was Rs 70 when the issue opened for subscription. The current GMP trends indicate a favorable listing when the IPO lists on BSE SME next week.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

The IPO was subscribed 36.12 times on Thursday

• Qualified Institutions: 0.87 times

• Non-Institutional Buyers: 28.42 times

• Retail Investors: 59.41 times

Rikhav Securities will finalise the share allotment of the IPO on Monday, Jan. 20. Successful bidders will receive their shares in Demat account on Jan. 21, while non-allottees will have their refunds processed on the same day.

The shares of Rikhav Securities are likely to get listed on the BSE SME on Jan. 22.

SEBI-registered financial services company Rikhav Securities Ltd. offers brokerage, investing, and banking services. Its services also include equity broking, cash delivery, intra-day trading, futures, and options.

The company holds memberships with the BSE, NSE and MCX, helping clients participate in IPOs. It offers depository services for demat accounts.

Rikhav Securities will use the funds from the fresh issue of its IPO to support incremental working capital needs, as well as the capex required for buying IT software, computers and laptops. A portion of the proceeds will also be used for general corporate purposes.

Rikhav Securities Ltd. clocked a revenue of Rs 96.15 crore and a net profit of Rs 50.37 crore during the period ended Sept. 30, 2024. Its FY24 revenue surged 104.2% to Rs 111.34 crore from Rs 54.52 crore in FY23. The net profit also surged 123.25% year-on-year to Rs 42.64 crore from Rs 19.1 crore in FY23.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.