The category reserved for retail investors was subscribed 1.82 times, and that of non-institutional investors was subscribed 2.25 times. However, the demand was muted from qualified institutional buyers with just 1% subscription so far on Day 2.
According to market analysts, the company’s shares are trading at a premium of Rs 83 in the unlisted market.
Analysts advised investors to subscribe to the issue for the long term as the company is backed by strong manufacturing capabilities, diverse product portfolio and strong financials.
“Taking into consideration weak cash flows and low return ratios, the valuations are slightly stretched. However, being a unique business, it may command a scarcity premium and long-term investors are recommended to subscribe to the issue. Listing gains are likely to remain tepid,” said SBI Securities.
The Rs 491 crore-IPO comprises a fresh equity issue of Rs 75 crore and an offer for sale (OFS) of up to 94.28 lakh shares, which comes to about Rs 416 crore.
The issue is priced in the range of Rs 418-441, where investors can bid for a minimum of 34 shares in one lot and in multiples thereafter.About 50% of the offer is set aside for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors.
Rishabh Instruments is a global energy efficiency solution company focused on electrical automation, metering and measurement, precision-engineered products etc., with diverse applications across industries including power, automotive and industrial sectors.
The company is a global leader in the manufacturing and supply of analog panel meters, and they are among the leading global companies in terms of manufacturing and supply of low voltage current transformers.
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