Rishabh Instruments Limited has obtained the final approval from the Securities and Exchange Board of India (SEBI) to collect funds via an initial public offering (IPO). The company is a worldwide provider of energy-efficient solutions with a focus on electrical automation, metering, and measurement, as well as precision-engineered products that have a wide range of applications in industries such as power, automotive, and industrial sectors.
On December 29 of last year, the company submitted initial IPO documents to SEBI.
The upcoming public issue will involve equity shares with a face value of Rs 10 per share, consisting of a fresh issue of shares valued at a maximum of Rs 75 crore, as well as an offer-for-sale (OFS) of up to 9,417,500 equity shares by Promoter and selling shareholders. This includes up to 2,500,000 equity shares by Asha Narendra Goliya, up to 400,000 equity shares by Rishabh Narendra Goliya, up to 517,500 equity shares by Narendra Rishabh Goliya (HUF), and up to 6,000,000 equity shares by SACEF Holdings II.
In collaboration with the lead bankers of the IPO, the company may explore a Pre-IPO placement of Rs 15 crore. If this placement is successful, the size of the public issue will be correspondingly decreased.
The fresh issuance of equity shares valued at Rs 59.50 crore will be utilized to finance the cost of expanding the Nashik Manufacturing Facility, as well as for general corporate purposes.
Rishabh Instruments was established in 1982 by Narendra Joharimal Goliya, who has more than four decades of experience in the manufacturing and electrical industry. The company specializes in providing a diverse range of electrical measurement and process optimization equipment, and is involved in the design, development, manufacturing, and sale of these devices, mainly under its own brand, catering to various industries.
Rishabh Instruments is a vertically integrated player engaged in the entire value chain of designing, developing, manufacturing, and supplying various electrical automation devices, including metering, control and protection devices, portable test and measuring instruments, as well as solar string inverters. Furthermore, the company has a subsidiary called Lumel Alucast that specializes in the manufacturing and supply of high-pressure die-cast aluminum.
Rishabh Instruments experienced a significant increase in revenue from operations, growing by 20.59% from Rs 389.96 crore in Fiscal 2021 to Rs 470.25 crore in Fiscal 2022. This growth was largely attributed to an increase in revenue from the sale of goods and services. Additionally, the company’s profit after tax rose by 38.15% to Rs 49.65 crore in Fiscal 2022, compared to Rs 35.94 crore in Fiscal 2021.
As of September 30, 2022, the revenue from operations for Rishabh Instruments stood at Rs 261.14 crore for the six-month period, and the profit after tax amounted to Rs 16.83 crore.
DAM Capital Advisors Limited, Mirae Asset Capital Markets (India) Private Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers for the IPO, while KFin Technologies Limited has been appointed as the registrar to the issue.
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