Rishabh Instruments IPO opens today: Latest GMP, should you subscribe, subscription status?

The company specialises in electrical automation, metering and measurement, precision engineered products, and aluminium high pressure die castings. The IPO will close on Friday, September 1. 

Rishabh Instruments IPO price band has been fixed at ₹418 to ₹441 per equity share of face value of ₹10 each. The IPO lot size is 34 equity shares and in multiples thereafter.

The public offer comprises a fresh issue of equity shares worth ₹75 crore and offer for sale (OFS) portion aggregating to 9.43 million equity shares of ₹415.78 crore. At the upper end of the price band, Rishabh Instruments IPO size stands at ₹490.78 crore.

The company has already raised about ₹147 crore from anchor investors on August 29, ahead of the IPO opening. The company had allotted 33,38,656 shares to anchor investors on Tuesday at a price of ₹441 per share.

Read here: Rishabh Instruments IPO: Rishabh IPO raises ₹147 crore from anchor investor; details here

The net proceeds from the offer will be used to finance the cost towards expansion of Nashik Manufacturing Facility I, and meet general corporate purposes,

Rishabh Instruments IPO: Should you subscribe?

Rishabh Instruments is a global engineering solution provider operating in large addressable markets, which analysts believe can benefit from industrialization trends.

“At the upper price band, the 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,” said brokerage firm Anand Rathi. 

The brokerage firm has ascribed “Subscribe for Long Term” rating to Rishabh Instruments IPO.

Also Read: Rishabh Instruments IPO: Here are 10 things to know

Rishabh Instruments IPO GMP Today

Rishabh Instruments IPO GMP today, or grey market premium today, is ₹83 per share, as per topsharebrokers.com. This indicates Rishabh Instruments shares are trading at a premium of ₹83 in the grey market on Wednesday.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Rishabh Instruments share price is ₹524 apiece, which is 18.82% premium to the issue price.

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.

Updated: 30 Aug 2023, 08:53 AM IST