Rishabh Instruments IPO Subscribed 31.65 Times On Day 3

Rishabh Instruments Ltd. launched its initial public offering on Aug. 30.

The IPO was subscribed 73% on the first day and 2.46 times on its second day. The bids were led by non-institutional investors, who subscribed 4.65 times; followed by retail investors, who subscribed 2.79 times; and institutional investors, who subscribed 0.22 times or 22%.

The energy-efficiency solutions provider plans to raise Rs 490.8 crore via a fresh issue and an offer for sale. The fresh issue will consist of 17 lakh equity shares aggregating Rs 75 crore and the OFS includes 94,28,178 shares aggregating Rs 415.8 crore. The price band is fixed in the range of Rs 418–441 per share.

Out of the total IPO size, 50% is reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 35% is to be allotted to retail individual investors. The business has set aside up to 20,000 equity shares under the IPO for subscription by eligible employees.

Rishabh Instruments has raised Rs 147.2 crore from anchor investors ahead of its IPO on Aug. 30.

The company allotted nearly 33.4 lakh shares at Rs 441 apiece to a total of 16 anchor investors. The investors include HDFC Mutual Fund, Nippon Life, Sundaram Mutual Fund, Bandhan Mutual Fund, Aditya Birla Sun Life Insurance, Quant Mutual Fund, Tata Multicap Fund, Ashoka India Equity Investment Trust and 3P India Equity Fund.

• Issue opens: Aug. 30.

• Issue closes: Sept. 1.

• Fresh issue size: Rs 75 crore.

• OFS size: Rs 415.8 crore.

• Face value: Rs 10 apiece.

• Fixed price band: Rs 418–441 per share.

• Minimum lot size: 34 shares.

• Listing: NSE, BSE.

Headquartered in Nashik, Maharashtra, Rishabh Instruments is a worldwide supplier of energy-efficiency solutions. The company focuses on electrical automation, metering and measurement, precision-engineered items, and high-pressure die castings made from aluminium through its subsidiary, Lumel Alucast. These products find diverse applications across the power, automotive, and industrial domains.

The corporation primarily follows a business-to-business model, which is purchase order-based for all segments except portable test and measuring instruments, which are also sold on a merchant basis.

The funds that will be raised will be employed for the following purposes:

• Financing the Rs 59.5-crore cost of the expansion of the Nashik manufacturing facility.

• General corporate purposes.

The IPO has been subscribed 31.65 times as of 7 p.m. on Friday.

• Institutional investors: 72.54 times.

• Non-institutional investors: 31.29 times.

• Retail investors: 8.44 times.