Rishabh Instruments IPO to open on Aug 30; Price band, lot size and other details

The initial public offering (IPO) of Rishabh Instruments will open for subscription on Wednesday, August 30. The company has fixed IPO price band at Rs 418-441 apiece. Investors would be required to bid for a minimum lot of 34 equity shares and its multiples thereof. The three-day bidding process will conclude on Friday, September 1.

Incorporated in 1982, Rishabh Instruments is engaged in the business of manufacturing, design, and development of test and measuring instruments and industrial control products. The company provides cost-effective solutions to measure, control, record, analyse, and optimise energy and processes through an array of products.

Rishabh Instruments is looking to raise Rs 75 crore via fresh isuse and existing promoters and investors will offload 94,28,178 equity shares via offer-for-sale (OFS) aggregating up to Rs 415.78 crore. At the upper price band, the company is looking to raise Rs 490.78 crore. Asha Narendra Goliya, Rishabh Narendra Goliya, Narandra Rishabh Goliya HUF and SACEF Holdings II will participate in OFS.

The net proceeds from the fresh equity sale would be utilised towards financing the cost towards the expansion of Nashik manufacturing facility, and general corporate purposes. The proceeds from the OFS will go entirely to the selling shareholders.

Rishabh Instruments deals in four segments: electrical automation devices; metering, control, and protection devices; portable test and measuring instruments; and solar string inverters. The company has manufacturing units and more than 270 dealers across the globe. It has presence in 70 countries and over 150 dealers across India.

In 2011, Rishabh Instruments acquired Lumel Alucast, a non-ferrous pressure casting company in Europe, which helped the company establish a strong foot in manufacturing and supply of low-voltage current transformers. It also provides complete aluminum high-pressure die-casting solutions.

For the year ended on March 31, the company had reported a net profit of Rs 49.69 crore with a total revenue of Rs 579.78 crore. The company clocked a net profit at Rs 49.65 crore with a total revenue oat Rs 479.92 crore in the previous financial year.

Rishabh Instruments  reserved 50 per cent of the net offer for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the shares. Retail investors will get the remaining 35 per cent of the net offering.

Dam Capital Advisors, Motilal Oswal Investment Advisors and Mirae Asset Capital Markets (India) are the lead managers to the issue, while Kfin Technologies has been appointed as the registrar to the issue. Shares of the company will be listed on both BSE and NSE, with September 11 as the tentative date of listing.

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