Street Calls of the Week
Rishabh Instruments, a global energy efficiency solution company, is anticipated to make a robust debut on the bourses on Monday, September 11, 2023. Experts predict the firm will list with at least a 12% premium over the issue price of Rs 441 ($5.98), supported by strong revenues from its export business.
The company's shares were trading at a 15% premium in the grey market, an unofficial platform where IPO shares are bought and sold until official listing, analysts reported anonymously. The listing price is expected to be around Rs 500 ($6.77), according to market observers.
On the final day of bidding, Rishabh Instruments' IPO was subscribed 31.65 times, receiving bids for 246.5 million equity shares against an issue size of 7.79 million shares. The oversubscription and positive market sentiment suggest a premium listing of about 15% over the issue price.
Prashant Tapse, senior VP, Research at Mehta Equities, said that the company's strong export-oriented business, which contributes to 66% of revenue, and its strong brand in niche products could lead to conservative investors booking profits on listing day. Similarly, Parth Shah, Research Analyst at StoxBox, advised investors who have received allotment to book profits on the listing day and evaluate the firm's financial performance for the next few quarters before making any investment decision.
Rishabh Instruments' offer was a fresh issue of Rs 75 crore ($1.01 million) of 1.7 million shares and an offer for sale of Rs 415 crore ($5.62 million) of 0.94 million shares. The company focuses on electrical automation, metering, measurement, and precision-engineered products catering to power, automotive, and industrial sectors through its five manufacturing facilities.
Despite the strong market anticipation, investors are advised to consult with certified experts before making any investment decisions.
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