Rikhav Securities Limited, a prominent player in the equity broking, investing, and trading sector, has launched its Book Built Issue amounting to ₹88.82 Crores. The issue consists of a Fresh Issue of 83.28 Lakh shares, totaling ₹71.62 Crores, and an Offer for Sale of 20.00 Lakh shares worth ₹17.2 Crores. The IPO opened on January 15, 2025, and closed on January 17, 2025. The allotment is expected to be finalized on January 20, 2025, with listing on the BSE SME slated for January 22, 2025.

The price band for the IPO is set at ₹82 to ₹86 per equity share, which would give the company a market capitalization of ₹329.31 Crores at the upper issue price. The lot size of the IPO is 1,600 shares, meaning retail investors will need to invest a minimum of ₹1,37,600, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,75,200 (2 lots).

The Grey Market Premium (GMP) for the Rikhav Securities IPO shows an expected listing gain of 60.46%, signaling strong demand and potential profit for investors. This GMP is based on the company’s solid financial performance, which has been reflected in the IPO subscription rate. The IPO was subscribed 285.33 times by the final day of the subscription period, a clear indication of overwhelming investor interest.

Rikhav Securities IPO is being managed by SMART Horizon Capital Advisors Private Limited, with LINK Intime India Private Limited serving as the registrar. The company also boasts a strong anchor investor base, having raised ₹25.11 Crores at ₹86 per share. A total of 29,20,000 equity shares were allocated to anchor investors.

The objective of the Rikhav Securities IPO is to use the net proceeds for:

1. ₹46 Crores to fund incremental working capital requirements.
2. ₹4.12 Crores for capital expenditure, including IT purchases.
3. General corporate purposes.

Rikhav Securities’ promoters, Mr. Hitesh Himatlal Lakhani, Mr. Rajendra N Shah, and Mr. Monil Rajendra Shah, bring decades of expertise in the stock broking industry. The company has consistently shown growth, with revenues increasing from ₹4,298.31 Lakh in FY2022 to ₹9,615.83 Lakh for FY2024. They also reported a profit after tax of ₹5,037.32 Lakh in FY2024, a notable increase from ₹1,957.17 Lakh in FY2023.

With a P/E ratio of 6.04x pre-issue and 7.72x post-issue, compared to the industry’s P/E ratio of 20x, the IPO appears reasonably priced. The return on equity (ROE) for FY24 stands at 36.60%, further enhancing its appeal.

For further updates, check the IPO allotment status on the official registrar page after January 20, 2025.

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