Rishabh Instruments Ltd. will launch its initial public offering on Aug. 30.
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.
Issue Details
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.
Shareholding Pattern
The pre-IPO shareholding stands at 3,62,60,678 and will change to 3,79,61,358 after the IPO.
SACEF Holdings II, one of the investors in the company, will sell up to 60,00,000 shares. Promoter Asha Narendra Goliya will sell up to 25,00,000 shares, and Narendra Rishabh Goliya will offload 5,17,500 equity shares. Moreover, 4,00,000 equity shares held by Rishabh Narendra Goliya will also be sold.
Business
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 company maintains an extensive network of 175 authorised distributors in 81 districts across India. It has served customers in over 100 countries in the last three financial years and has over 164 authorised distributors catering to international customers across 70 countries, including Germany, the U.S., the U.K., Australia, and the Middle East. Due to its vast global presence, its top line includes an average of 66% of export revenue.
Use Of Proceeds
The funds that will be raised will be employed for the following purposes:
Financing the Rs 59.50 crore cost of the expansion of the Nashik manufacturing facility
General corporate purposes.
Risk Factors
The business is dependent on its manufacturing facilities, and any slowdown or shutdown in the manufacturing operations could have an effect on the business.
Most of the firm's customers do not commit to long-term contracts, subjecting the company to risks like order cancellation, changes in production quantities, and production delays.
If the products experience quality defects, the company may lose customers and be subject to product liability claims, which would ultimately hurt the firm's reputation.
Failure to manage component and material purchasing or the shortage in the supply of the firm's major production inputs could adversely affect their ability to deliver the contracted volume of manufactured products. This would increase inventory carrying costs, increase the risk of exposure to inventory obsolescence, and have a material adverse effect on operations and financial condition.
Watch the full interview with Rishabh Instruments management here:
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