Rishabh Instruments Limited, a global energy efficiency solution company focused on electrical automation, metering and measurement, precision engineered products with diverse applications across industries including power, automotive and industrial sectors has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The company had filed preliminary IPO papers with Sebi on December 29, last year.
The public issue with a face value of Rs 10 per equity share consists of a fresh issue of equity shares worth up to Rs 75 crore and an offer-for-sale (OFS) of up to 9,417,500 equity shares by Promoter and selling shareholders, which comprises 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.
The company, in consultation with the lead bankers to the issue, may consider a Pre-IPO placement of Rs 15 crore. If such placement is completed, the issue size will be reduced accordingly.
The proceeds from the fresh issuance worth Rs 59.50 crores will be used towards financing the cost towards the expansion of Nashik Manufacturing Facility and general corporate purposes.
With over four decades of experience in the manufacturing and electrical industry, Narendra Joharimal Goliya founded Rishabh Instruments in the year 1982. The company supplies a wide range of electrical measurement and process optimization equipment and engages in the design, development, manufacturing, and sale of devices-significantly under its own brand-across a number of industries.
It is a vertically integrated player involved in designing, developing, manufacturing and supplying electrical automation devices; metering, control and protection devices; portable test and measuring instruments; and solar string inverters. Additionally, through its subsidiary, Lumel Alucast, it manufactures and supplies high pressure die cast aluminium.
Rishabh Instruments' revenue from operations increased by 20.59% from Rs 389.96 crore in Fiscal 2021 to Rs 470.25 crore in Fiscal 2022, primarily driven by increase in revenue from sale of goods and from sale of services, whereas profit after tax grew 38.15% to Rs 49.65 crore in Fiscal 2022, as compared to Rs 35.94 crore in Fiscal 2021.
For the six months ended September 30, 2022 revenue from operations stood at Rs 261.14 crore and profit after tax stood at 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 and KFin Technologies Limited is the registrar to the issue.