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  • Writer's pictureJatin Agarwal

Rishabh Instruments IPO


Rishabh Instruments Logo

Company and IPO Overview:


Rishabh Instruments Limited, incorporated in 1982, is engaged in the manufacture, design, and development of Test and Measuring Instruments and Industrial Control Products with diverse applications across industries including power, automotive and industrial sectors.


Rishabh Instruments provides cost-effective solutions to measure, control, record, analyze, and optimize energy and processes through an array of products. It also provides complete aluminum 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.


The Company Rishabh Instruments is positioned as 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. Lumel is the most popular brand in Poland for meters, controllers, and recorders and Lumel Alucast is one of the leading non-ferrous pressure casting players in Europe.


It has a large network of 175 approved distributors/stockists spread throughout 81 districts in India, with direct sales performed through eight sales and marketing offices housing 53 engineers and 24 sales employees. In the last three fiscal years, it has served customers in over 100 countries worldwide. As of May 31, 2023, through five sales and marketing offices and a strong global network of 339 approved distributors/stockists.


Additionally, Rishabh Instruments offers various manufacturing services such as mould design and production, EMI/EMC testing, electronic manufacturing, and software solutions. Electrical automation products include energy management software, transducers and isolators, paperless recorders (chartless) and dataloggers, temperature and humidity recorders, I/O converters and temperature controllers among others. It’s metering, control and protection devices consist of analog panel meters, rotary cam switches, current transformers, shunts, digital panel meters, multifunction meters, and multi-load monitoring meters.


Rishabh Instruments IPO is the next main board IPO which is ready to set its footprints in the stock market and the company is about to raise around ₹ 490.78 crores via IPO comprising Fresh Issue of ₹ 75 crores and Offer For Sale upto ₹ 415.78. The price band of the issue is ₹ 418 to ₹ 441 with a minimum market lot of 34 shares. Rishabh Instruments IPO subscription for retail quota is 35.00%, NII is 15.00% and QIB is 50.00%.


Financials (rounded off):

Date

Total Revenue (₹ in cr)

​​​PAT (₹ in cr)

​31/03/2021

402

36

31/03/2022

480

50

31/03/2023

580

50


Objectives of the Issue:

1. Financing the cost of Nashik Manufacturing Facility I expansion.

2. General corporate purposes.


IPO Details:

IPO Date

30/08/2023-01/09/2023

Face Value

₹10 per share

IPO Price Band

₹418-₹441 per share

IPO Lot Size

34 Shares

Listing at

NSE, BSE

Basis of Allotment

06/09/2023

Credit of Shares in Demat

08/09/2023

Listing Date

11/09/2023

Pre-Issue Shareholding

80.67%

Post-Issue Shareholding

70.68%

Retail Minimum Lot Size

34 shares (₹14,994)


Valuations & Margins:

Indicators

FY 21

FY 22

FY 23

EPS

9.32

12.89

12.76

P/E

-

-

-

EBITDA (%)

17.96

17.57

15.16

Debt/Equity

0.35

0.28

0.26

ROCE (%)

12.16

15.2

13.77


Important things to note about the Company:


Top reasons to consider the IPO:


1. The global presence of Rishabh Instruments gives it exposure to the latest technologies for its core segments. This gives them the ability to provide innovative and customizable solutions to its customers more efficiently. As Rishabh Instrument is a global engineering solution provider operating in large addressable markets, it is well positioned to benefit from mega-industrialisation trends.


2. Rishabh Instruments has geographically distributed manufacturing Facilities making it among the leading global companies in terms of manufacturing and supply of low voltage current transformers. Its vertical integration also makes it a cost and time-efficient supplier of our products to our customers.


3. Rishabh Instruments has a diverse product portfolio of over 145 product lines and 0.13 million stock-keeping units as of May 31, 2023. It diversifies its products based on the technology, parameters, features and scale for each of the geographies it serves which helps it to retain more customers.


4. Rishabh Instruments has a diverse customer base and is not dependent on any specific customer for overall revenue from operations.


Risk Factors to watch out in the IPO:


1. Rishabh Instruments is dependent on its subsidiary for a significant portion of operations and revenues. Therefore, it relies on its subsidiaries to expand its market share and business.


2. Rishabh Instruments sources components and other inputs, including semiconductor chips in some of its manufacturing operations. Shortages in the supply of semiconductors can have adverse effects on the company’s operations.


3. Rishabh Instruments is exposed to foreign exchange rate fluctuations with respect to revenue from overseas business in foreign denominations; its foreign currency-denominated borrowings; currency translation losses for the purpose of preparing our consolidated financial statements; and the value of our foreign assets.


4. The demand for the products of Rishabh Instruments in foreign countries is subject to international market conditions and regulatory risks that could adversely affect its business and results of operations.


Crisp Insights:

  • Rishabh Instruments IPO GMP Today: The Company is commanding a GMP of around Rs.75.

  • Rishabh Instruments IPO Review: Listing gains likely as per GMP data.

  • Rishabh Instruments GMP is strong and hence, investors can look to invest for listing as well as long term gains.


Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.




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