Rikhav Securities Limited, an established player in equity broking, investing, and trading activities, has launched its ₹88.82 Crore IPO to raise funds for its working capital and capital expenditures. Registered with SEBI as a stock broker, the company holds memberships with major exchanges such as the BSE Limited, NSE, and MCX. Their diversified services include cash delivery, intra-day trading, and futures and options.

IPO Details and Subscription Information

The Rikhav Securities IPO consists of a Fresh Issue of 83.28 Lakh shares worth ₹71.62 Crores and an Offer for Sale of 20.00 Lakh shares totaling ₹17.2 Crores. The price band for the IPO is set between ₹82 to ₹86 per equity share. This translates to a market capitalization of ₹329.31 Crores at the upper price band.

The subscription period for the IPO begins on January 15, 2025, and closes on January 17, 2025. Investors can expect the allotment date to be finalized on January 20, 2025, with the listing date tentatively set for January 22, 2025 on the BSE SME platform.

The lot size of the IPO is set at 1,600 shares. For retail investors, the minimum investment amounts to ₹1,37,600, while High-Net-Worth Individuals (HNIs) need to invest in a minimum of 2 lots (3,200 shares), totaling ₹2,75,200.

Rikhav Securities IPO GMP and Market Insights

The Grey Market Premium (GMP) for the IPO is currently estimated at ₹52, indicating a 60.46% potential listing gain based on market conditions. However, it is important to note that GMP is speculative and should be used for educational purposes only, as no real trading occurs based on it.

Day Wise GMP Trend

• 14 January 2025: IPO Price: ₹86, Expected Listing Price: ₹138, GMP: ₹52 (60.46%)
• 13 January 2025: IPO Price: ₹86, Expected Listing Price: ₹103, GMP: ₹17 (19.76%)

Rikhav Securities IPO Subscription Status

As of 10:30 AM on January 15, 2025, the Rikhav Securities IPO has been subscribed 0.43 times on its first day of subscription. The live subscription status can be checked at BSE for real-time updates.

Anchor Investors

Rikhav Securities raised ₹25.11 Crores from Anchor Investors at the IPO price of ₹86 per share, with 29,20,000 shares allocated to them.

IPO Allotment Status

The allotment of shares will be finalized on January 20, 2025. To check the allotment status, investors can visit the registrar’s website and input their application number, PAN, or DP Client ID.

Financial Overview and Performance Metrics

Rikhav Securities has shown strong financial performance over recent years. The company reported revenues of ₹9,615.83 Lakh for the period ending September 30, 2024, with an EBITDA of ₹6,601.79 Lakh. The Profit after Tax (PAT) for the same period stood at ₹5,037.32 Lakh. This steady growth reflects the company’s operational success.

The pre-issue EPS is ₹14.23, and the post-issue EPS is expected to be ₹11.14 for FY24. With a pre-issue P/E ratio of 6.04x and a post-issue P/E ratio of 7.72x, the company’s valuation is attractive compared to the industry P/E ratio of 20x.

The Return on Capital Employed (ROCE) for FY24 stands at 29.48%, and the Return on Equity (ROE) is 36.60%, indicating a strong performance relative to industry peers.

Objectives of the IPO

The net proceeds from the Rikhav Securities IPO will be used for:

1. ₹4,600.00 Lakh to fund working capital requirements.
2. ₹412.81 Lakh for capital expenditure, including purchasing IT Software, computers, and laptops.
3. The remainder will be used for general corporate purposes.

IPO Review and Conclusion

Given the strong financials, experienced management, and attractive valuation compared to the industry average, Rikhav Securities Limited presents an opportunity for risky investors to apply for the IPO with the expectation of listing gains. The company’s growth trajectory and strategic plans are promising, making this an interesting offering in the equity broking sector.

The Upcoming IPOs in this week and coming weeks are  Land Immigration, EMA Partners, Stallion India and Capital Numbers.

The Current active IPO are Kabra Jewels, Rikhav Securities and Laxmi Dental.

For more updates on executive appointments and other business developments, we encourage readers to explore related news and articles, including the latest on IPOs, share market updates, and financial strategies at:
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