Investors are abuzz with excitement as Rishabh Instruments gears up for its stock market debut on September 11. Analysts are predicting a promising start, with expectations of a 12% premium over the IPO price of Rs 441, primarily driven by the company's robust export revenues.
Analysts believe the starting price might be about Rs 500, showing that people are feeling more positive about it in the market. Notably, Rishabh Instruments was already trading at a 15% premium over its issue price in the grey market, a realm where IPO shares change hands unofficially before being officially listed.
On the final day of the IPO bidding process, Rishabh Instruments witnessed a subscription rate of 31.65 times, with bids pouring in for 24.65 crore equity shares against an issue size of 77.9 lakh shares.
Prashant Tapse, Senior VP of Research at Mehta Equities, commented on the situation, stating, "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." Tapse also highlighted the company's strong export-oriented business, which accounts for 66% of its revenue, as well as its robust brand presence in niche product segments.
Parth Shah, a Research Analyst at StoxBox, echoed similar sentiments, suggesting that Rishabh Instruments might command a 15% premium over the issue price due to its oversubscription and the prevailing bullish market sentiment.
However, analysts advise investors to consider booking profits on the listing day and assess the company's financial performance in the upcoming quarters before making long-term investment decisions.
Rishabh Instruments' IPO comprised a fresh issue of Rs 75 crore, consisting of 17 lakh shares, along with an offer for sale of Rs 415 crore, comprising 9.4 lakh shares.
Rishabh Instruments is a global energy efficiency solutions provider, They're specialized in things like making electrical systems work better, measuring stuff accurately, and creating precise products. The company serves various industries like electricity, cars, and factories. They do this using their five manufacturing plants.
Investors should be careful and talk to experts who know about investments before making any decisions because the market can change quickly.
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