Rishabh Instruments IPO: GMP, subscription status, review, other details. Apply or not?

Rishabh Instruments IPO: The initial public offering (IPO) of Rishabh Instruments Limited opened for bidding on 30th August 2023 and it will remain open for subscribers till 1sst September 2023. This means, investors have just one day in hand to apply for the public offer as Rishabh Instruments IPO subscription date is ending today evening. The issue has received positive response from investors. As per the Rishabh Instruments IPO subscription status, on day three of bidding, the book build issue has been subscribed 31.65 times whereas its retail portion has been subscribed 8.44 times.

Meanwhile, ahead of Rishabh Instruments IPO subscription closure, grey market sentiments have remained bullish on the public issue. According to market observers, shares of Rishabh Instruments Limited are available at a premium of ₹85 per equity share in grey market today.

Rishabh Instruments IPO GMP today

Market observers said that Rishabh Instruments IPO grey market premium (GMP) today is ₹85, which is ₹2 higher from its yesterday's GMP of ₹83. They said that grey market sentiments in regard to this book build issue has remained positive for the last four days that reflects that unlisted market is expecting warm welcome of Rishabh Instruments shares in the primary market. They expected sharp rise in subscription status of the IPO as today is the last date to apply for the IPO.

Rishabh Instruments IPO subscription status

As per the Rishabh Instruments IPO subscription status, by on day three of bidding, the book build issue has been subscribed 31.65 times whereas its retail portion has been subscribed 8.44 times. The public issue has been subscribed 31.29 times in NII category while its QIB portion has been subscribed 72.54 times.

Rishabh Instruments IPO review

Giving subscribe tag for long term, Anand Rathi report said, "The company is a global engineering solution provider operating in large addressable markets and can benefit from industrialization trends. At the upper price band company is valuing at P/E of 34.3x FY23 earnings with a market cap of ₹16,740 million post issue of equity shares and return on net worth of 11.67%. We believe that issue is fairly priced and recommend “Subscribe – Long Term” rating to the IPO."

Canara Bank Securities has also given 'subscribe' tag citing, "Rishabh Instruments Ltd is the manufacturer of electrical and electronic products across globe. Their products include analog panel meters, low voltage current transformers. Lumel is the brand through which they sell their products in Poland. Lumel is into melting of liquid aluminum per day for car compressors in Europe. They are the first to manufacture solar string inverters in India. They are also venturing in to Electronic manufacturing services segment which manufactures printed circuit boards. Company’s revenue shows growth of 20% 2 year CAGR while EBIDTA level performance was not robust as it grew by 11% 2 year CAGR. This issue is available at P/EPS of 34.35x, which cannot be compared as it does not have any comparable listed peers. EBIDTA Margins have fallen from 17% in FY2021 to 15% in FY2023 which shows inconsistency in margins. While, the company has huge potential in upcoming newer segments like solar power, electrical automation and electronic manufacturing services. Hence, we recommend to subscribe the issue for listing gains."

Rishabh Instruments IPO details

Rishabh Instruments IPO allotment date is most likely on 6th September 2023 and the public issue is proposed for listing on NSE and BSE. Most likely Rishabh Instruments IPO listing date is 11th September 2023.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.