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Rishabh Instruments IPO is live. Should you Invest?

Rishabh Instruments IPO is live. Should you Invest?

Rishabh Instruments IPO

Rishabh Instruments IPO is Open for Investing.

In this article

📃About Rishabh Instruments

Incorporated in 1982, Rishabh Instruments Limited is engaged in manufacturing, designing, and developing Test and Measuring Instruments and Industrial Control Products.

The company provides cost-effective solutions to measure, control, record, analyze, and optimize energy and processes through various products. It also offers 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.

In 2011, Rishabh Instruments acquired Lumel Alucast, a non-ferrous pressure casting company in Europe, which helped the company establish a firm foot in manufacturing and supplying low-voltage current transformers. The company also provides certain manufacturing services, which include mould design and manufacturing, EMI/EMC testing services, Electronic Manufacturing Services, and software solutions (e.g., MARC).

Rishabh Instruments has 4 segments:

  • electrical automation devices;
  • metering, control, and protection devices;
  • portable test and measuring instruments, and
  • solar string inverters.

The company has 3 manufacturing units and more than 270 dealers across the globe, reaching 70+ countries and 150+ dealers across India, covering every state.

💰Issue Details of Rishabh Instruments

  • IPO open from 30th Aug 2023 – 01st Sep 2023
  • Face value: ₹10 per equity share
  • Price band: ₹418 to ₹441 per share
  • Market lot: 34 shares
  • Minimum Investment: ₹14,994
  • Listing on: BSE and NSE
  • Offer for sale: Approx ₹490.78 Cr (Fresh Issue: ₹75 Cr + OFS ₹415.78 Cr)
  • Registrar: Kfin Technologies Limited

🪙Total Issue Price

Rishabh Instruments IPO Issue Price

🪚Offer Breakup

Rishabh Instruments IPO Offer Break-Up

🔭IPO Object

The company intends to utilise the net proceeds from the issue towards the funding of the following objects:

  1. Financing the cost towards the expansion of Nashik Manufacturing Facility I and
  2. General corporate purposes.

⛓️IPO Strength

Some of the qualitative factors and strengths that form the basis for computing the Offer Price are: 

  • Global engineering solution provider operating in large addressable markets and well positioned to benefit from mega industrialization trends.
  • Ability to drive technology and innovation through advanced research and development capabilities.
  • Vertically integrated operations backed by strong manufacturing capabilities.
  • Track record of successful integration of acquired businesses or entities across geographies.
  • Diversified product portfolio and Wide customer base.

🧨IPO Risk

  1. Most of their customers commit to short-term contracts. They may cancel their orders, change production quantities, delay production or change their sourcing strategy.
  2. Their business depends on and will continue to rely on their manufacturing facilities. We are subject to certain risks in their manufacturing process. Any slowdown or shutdown in their manufacturing operations could harm our business, financial condition and results of operations.
  3. If the products they manufacture experience quality defects or the manufacturing services they provide are deficient, they may lose their customers. They may be subject to product liability claims or claims alleging deficiency in service, which may also cause damage to their reputation and/or adversely affect the results of operations and financial condition.
  4. They are dependent on their Promoter, management team, several Key Managerial Personnel, and persons with technical expertise and the loss of or their inability to attract or retain such persons could adversely affect their business, results of operations and financial condition.
  5. Suppose they cannot effectively execute their strategies to expand existing customer accounts and geographical footprint. Their business and prospects may be materially and adversely affected in that case.

💸Financial Data

Period EndedTotal AssetsTotal RevenueProfit After Tax
31-Mar-21 511.97 402.4935.94
31-Mar-22 563.89 479.9249.65
31-Mar-23 648.93 579.7849.69
Amount in ₹ Crore

📬Also Read: Ensuring Financial Safety: Embracing the Raksha of Returns

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