Rishabh Instruments is set to list on the bourses on September 11. Experts expect it to list with at least a 12 percent premium over the issue price of Rs 441, citing strong revenues from export business.
Analysts expect the listing price to be around Rs 500.
Rishabh Instruments was trading at a 15 percent premium over the issue price in the grey market, said analysts on condition of anonymity. The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing.
On the final day of bidding, Rishabh Instruments was subscribed 31.65 times, receiving bids for 24.65 crore equity shares against the issue size of 77.9 lakh shares.
“Considering the healthy subscription demand and optimistic market mood, a decent 12-15 percent listing gain can be assumed and the listing price would be around Rs 500 apiece against the issue price of Rs 441,” said Prashant Tapse, senior VP, Research at Mehta Equities.
He further said that the company has a strong export-oriented business with 66 percent of revenue coming from exports and a strong brand in niche products. On the back of that, Tapse expects conservative allotted investors to book profits on listing.
On the back of an oversubscription of about 32 times and buoyant market sentiment, Rishabh Instruments is likely to list at a premium of 15 percent over the issue price, said Parth Shah, Research Analyst, StoxBox.
Analysts advise investors to book profits on the day of listing. “We advise investors who have received allotment to book profits on the listing day and evaluate the financial performance for the next few quarters for an investment decision,” said Shah.
The offer was a fresh issue of Rs 75 crore of 17 lakh shares and an offer for sale of Rs 415 crore of 9.4 lakh shares.
Rishabh Instruments is a global energy efficiency solution company with a focus on electrical automation, metering, measurement, and precision-engineered products. It caters to power, automotive, and industrial sectors through its five manufacturing facilities.
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