Rishabh Instruments IPO - Investment Rationale, Issue Details, Financials, Key Concerns: HDFC Securities

HDFC Securities Retail Research's IPO Report

Rishabh Instruments Ltd. launched its initial public offering today. and closes on September 01.

The global energy-efficiency solutions provider has fixed a price band of Rs 418-441 Apiece.

Objects of Issue:

The offer comprises a fresh Issue aggregating up to Rs 750.00 million by Rishab Instruments and an offer for sale of up to 9,428,178 equity shares by the selling shareholders.

The offer for sale:

The object of the offer for sale is to allow the selling shareholders to sell up to 9,428,178 equity shares. Rishab Instruments will not receive any proceeds from the offer for sale. The selling shareholders will be entitled to their respective portion of proceeds of the offer for sale, net of their respective proportion of the offer related expenses and the relevant taxes thereon.

Fresh Issue

The company proposes to utilise the net proceeds towards funding the following objects (collectively, the 'objects'):

• Financing the cost towards expansion of Nashik Manufacturing Facility I and

• General corporate purposes.

In addition, Rishab Instruments expect to achieve the benefit of listing of its equity shares on the stock exchanges.

Business Strategy:

• Enhance product innovation, engineering and design competence while focussing on higher value addition.

• Expanding geographical footprint.

• Continue to pursue strategy for inorganic growth.

• Target new customers and expand existing customer accounts

• Explore opportunities to tap emerging products and services segments

• Promote product localisation.

About the company

Rishabh Instruments is a global energy efficiency solution company focused on electrical automation, metering and measurement, precision engineered products, et al. with diverse applications across industries including power, automotive and industrial sectors.

It supplies a wide range of electrical measurement and process optimization equipment, and are engaged in designing, developing and manufacturing, and sale of devices significantly under its own brand across several sectors.

It provides comprehensive solutions to its customers looking for costeffective ways to measure, control, record, analyse and optimise energy and processes through its array of products. It also provides complete aluminium high pressure die casting solutions for customers requiring close tolerance fabrication (such as automotive compressor manufacturers and automation high precision flow meters’ manufacturers), machining and finishing of precision components.

Rishab Instruments is a global leader in manufacturing and supply of analog panel meters, and it is among the leading global companies in terms of manufacturing and supply of low voltage current transformers.

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