Rishabh Instruments Limited IPO - Review, Valuation, Date & GMP

Rishabh Instruments Limited - Complete Overview

Established in 1982, Rishabh Instruments Limited stands as a global leader in energy efficiency solutions, focusing on electrical automation, metering and measurement, as well as precision-engineered products, et al. These offerings cater to a wide range of industries including power, automotive, and industrial sectors.

The company boasts an extensive array of electrical measurement and process optimization equipment. They are deeply engaged in the design, development, manufacturing, and sale of devices under their own brand, spanning various sectors. By providing holistic solutions, Rishabh Instruments assists customers seeking cost-effective methods to gauge, control, record, analyze, and enhance energy usage and processes through their diverse product lineup.

Furthermore, the company offers comprehensive aluminium high-pressure die-casting solutions, meeting the needs of customers requiring precise fabrication, machining, and finishing of components. This service benefits industries such as automotive compressor manufacturers and automation high-precision flow meter manufacturers.

Rishabh Instruments has solidified its reputation as a global pioneer in analog panel meter manufacturing and supply. Additionally, it stands as a significant player in the production and distribution of low-voltage current transformers on the global stage.

The acquisition of Lumel Alucast in 2011, a prominent non-ferrous pressure casting entity in Europe, underscored the company's expansion. Lumel, a renowned brand in Poland for meters, controllers, and recorders, has further enriched Rishabh Instrument's portfolio.

The company operates as a vertically integrated entity, encompassing design, development, manufacturing, and supply across four key segments: (i) electrical automation devices, (ii) metering, control and protection devices, (iii) portable test and measuring instruments, and (iv) solar string inverters.

Rishabh Instruments has earned recognition from the Engineering Export Promotion Council of India as a 'Star Performer' in the category of miscellaneous instruments and appliances.

As of May 31, 2023, the company's product portfolio encompasses over 145 distinct product lines, totalling 0.13 million stock-keeping units. Over the fiscal years 2023, 2022, and 2021, the company manufactured 16.21 million units, 14.02 million units, and 13.35 million units of products, respectively. Demonstrating its global presence, Rishabh Instruments has served customers across more than 100 countries over the past three financial years.

 

 

What does the company do?

Rishabh Instruments Limited is a global energy efficiency solutions company focused on electrical automation, metering and measurement, as well as precision-engineered products, among others, with diverse applications across industries including power, automotive, and industrial sectors.

 

IPO Overview

The upcoming IPO of Rishabh Instruments Limited is slated for listing on the stock market from August 30 to September 1, 2023. The IPO's share price has been established in the range of Rs.418 to Rs.441 per share.

With the aim of achieving several objectives, the company aims to raise Rs.490.78 Cr from this issue. The anticipated date for the IPO's listing is September 11, 2023.

 

Rishabh Instruments Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	30 August 2023
IPO Closing Date	01 September 2023
IPO Allotment Date	06 September 2023
Refund initiation	07 September 2023
IPO Listing Date	11 September 2023

 

Rishabh Instruments Limited IPO Details

IPO Opening & Closing Date	30 August to 01 September 2023
Face Value	Rs.10 Per Share
Issue Price	Rs. 418 to Rs. 441 Per Share
Lot Size	34 Shares
Price of 1 Lot	Rs. 14,994
Issue Size	11,128,858 Shares (aggregating up to Rs.490.78 Cr)
Offer for Sale	9,428,178 Shares of Rs.10 (aggregating up to Rs.415.78 Cr)
Fresh Issue	1,700,680 Shares (aggregating up to Rs.75.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Ltd.

 

Rishabh Instruments Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	67 Lot

 

Rishabh Instruments Limited IPO Reservation

Institution Portion	50%
Non-Institution Portion	15%
Retail Portion	35%

 

Company Financial

Amount in crores

Period	FY - 21	FY - 22	FY - 23
Total Assets	511.97	563.89	648.93
Total Revenue	402.49	479.92	579.78
PAT	35.94	49.65	49.69
Net Worth	302.13	346.10	408.75
Total Borrowings	91.95	96.57	102.85

 

The breakup of revenue generated from the Indian and overseas operations

(Amount in Million)

Segment Revenue	FY 23	FY 22	FY 21
Indian operations	1,951.10	1,511.58	1,257.70
Overseas operations	3,774.30	3,190.92	2,641.86
Total	5,695.40	4,702.50	3,899.56

 

Breakup of revenue generated from the overseas operations

(Amount in Million)

Continent Name	FY 23	FY 22	FY 21
Africa	25.04	28.61	24.98
Asia	1,276.34	1,054.47	1,042.24
Europe	4,000.31	2,933.67	2,350.45
America (North America and South America)	346.66	248.01	176.20
Australia	47.06	437.74	305.69
Total	5,695.40	4,702.50	3,899.56

 

Objective of the Issue 

The funds will be utilised to achieve the following objectives:

• Covering the expenses related to the expansion of Nashik Manufacturing Facility I.
• Addressing general corporate requirements.

 

Promoters and Management of Rishabh Instruments Limited

Narendra Joharimal Goliya is the primary Promoter of the Company.

Pre-issue Promoter shareholding	80.67%
Post-issue Promoter shareholding	70.68%

 

Peer Comparison

According to the Rishabh Instruments DRHP, there are no companies listed in India or globally that are engaged in a business similar to that of the Company, based on their assessment.

 

IPO's Valuations

The Rishabh Instruments IPO share price is set between the range of Rs.418 to Rs.441, while the company's EPS amounts to Rs.12.84 per share. Although the company has not explicitly provided a PE ratio, an estimation using the higher end of the IPO price range would result in a PE ratio of approximately 34.

 

Dividend Policy 

While the company has not distributed dividends on its equity shares in past, it has paid dividends on the CCPS until April 1st, 2023. Notably, a dividend of Rs.0.0003 per share was disbursed in the fiscal years 2021, 2022, and 2023. However, the amount of dividend paid in the past is not necessarily indicative of the Company's future dividend policy. The payment of dividends in the future depends on the company's financial performance.

 

IPO's Strengths

• Proficiency in propelling technology and innovation via advanced research and development prowess.
• Operating as a global engineering solutions provider within expansive target markets, strategically poised to leverage substantial industrialization trends.
• Supported by robust manufacturing capabilities, the operations are seamlessly vertically integrated.
• Boasting a varied product portfolio that caters to diverse needs.
• Possessing an extensive customer base that spans wide-ranging sectors.
• Demonstrating a history of successfully integrating acquired businesses or entities across different geographical regions.
• A globally integrated business model that enhances cost competitiveness and mitigates risk within customer supply chains.
• Well-established and widely recognized brands.
• Strong and demonstrated management capabilities.

 

IPO Weaknesses

• Lack of long-term contracts with customers.
• The company's reliance on its subsidiaries exposes it to substantial operational and financial risks.
• Shortages in semiconductor supply have had and might continue to exert a significantly adverse impact on the operational results and financial condition.
• The Company will not receive any proceeds from the Offer for Sale.
• Fluctuations in foreign exchange rates might negatively impact the company's earnings and profitability.
• The company is unable to locate certain historical records, including forms filed with the Registrar of Companies.
• The company is subject to substantial import duties or restrictions.
• Failure to acquire or renew necessary approvals, licenses, permits, or certificates required for the business could materially and adversely affect its operations.

 

 

IPO GMP Today

The Rishabh Instruments IPO GMP is not yet available.

 

Conclusion

Experiencing robust revenue growth and operating within a growing sector, the company serves as a global engineering solutions provider with a diversified product portfolio. Emphasizing product quality as it extends its reach to over 100 countries, the company offers an appealing investment opportunity for long-term investors, despite certain valuation risks. Investors are advised to conduct a thorough analysis of all factors before investing to ensure optimal results.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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