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Rishabh Instruments gets SEBI's go ahead to float IPO

Feb 21, 2023, 16:13 IST
PTI
Representative imageCanva
Rishabh Instruments, a global energy efficiency solution company, has received capital markets regulator Sebi's nod to mop-up funds through an initial public offering (IPO). The IPO comprises a fresh issue of equity shares aggregating up to Rs 75 crore and an offer for sale (OFS) for up to 94.17 lakh equity shares by its promoter group shareholders and an existing investor, according to its draft red herring prospectus (DRHP).
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Under the OFS, Asha Narendra Goliya will offload 25 lakh equity shares, Narendra Rishabh Goliya (HUF) will sell 5.17 lakh shares, Rishabh Narendra Goliya will dispose of 4 lakh shares and SACEF Holdings II will sell 60 lakh equity shares in the company.

The company, which had filed draft papers with the Securities and Exchange Board of India (Sebi) in December 2022, obtained its observation letter on February 17, 2023, an update with the regulator showed on Tuesday.

In Sebi's parlance, its observation implies its go ahead to launch initial share-sale.

Going by the draft papers, the firm may explore a pre-IPO placement aggregating to Rs 15 crore. If such a placement is undertaken, the size of the fresh issue will be reduced.

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Proceeds from the issue worth Rs 59.50 crore will be utilised towards financing the expansion of its manufacturing facility in Nashik and for general corporate purposes.

The Nashik-based firm is focused on electrical automation, metering and measurement, precision engineered products with diverse applications across industries, including power, automotive and other industrial sectors.

It is one of the leading companies in terms of manufacturing and supply of low voltage current transformers and analog panel meters.

The equity shares of the company are proposed to be listed on both -- NSE and BSE.

DAM Capital Advisors, Mirae Asset Capital Markets (India) and Motilal Oswal Investment Advisors Ltd are the book-running lead managers to the issue.

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For the financial year ended March 2022, the company's net profit stood at Rs 49.65 crore, whereas its revenue from operations rose to Rs 470.25 crore in FY22, as compared to Rs 389.96 crore in the previous fiscal.

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