Rikhav Securities IPO Overview Rikhav Securities Limited, a well-established name in the equity broking, investing, and trading sector, is set to launch its IPO on January 15, 2025, which will close on January 17, 2025. The IPO is valued at ₹88.82 crores, comprising a fresh issue of 83.28 lakh shares worth ₹71.62 crore and an Offer for Sale (OFS) of 20 lakh shares worth ₹17.2 crore. The price band for the offering has been set between ₹82 and ₹86 per share, providing an attractive entry for investors in a rapidly growing financial services company.

Rikhav Securities is registered with the SEBI as a stock broker and holds memberships with leading exchanges like BSE, NSE, and MCX, enabling it to offer a range of equity broking services, including cash delivery, intra-day trading, and futures and options. The company is also recognized for its strong industry presence and has experienced growth in recent years.

The IPO aims to raise capital for working capital requirements and capital expenditure to upgrade technology, including the purchase of IT software, computers, and laptops. The remaining proceeds will be used for general corporate purposes.

Grey Market Premium and Listing Expectations The Grey Market Premium (GMP) of Rikhav Securities is currently estimated at ₹52, which suggests a listing gain of 60.46% if the stock lists at ₹138. The GMP is an informal indicator based on the unregulated trading of shares, showing positive demand among investors. However, it is crucial to note that the GMP does not guarantee actual market performance and should be viewed as informational.

The company's market capitalization at the top end of the price band (₹86 per share) is estimated at ₹329.31 crore, which is attractive for long-term investors seeking exposure to the broking and financial services sector.

Subscription and Allotment Process Rikhav Securities IPO has shown strong investor demand, with the IPO subscribed 285.33 times by the final day of the subscription period on January 17, 2025. The lot size for retail investors is 1,600 shares, requiring a minimum investment of ₹1,37,600. HNIs are required to apply for a minimum of two lots (3,200 shares), amounting to ₹2,75,200.

The IPO allotment date is scheduled for January 20, 2025, and investors can check the allotment status online through the registrar's website. Shares are expected to be listed on the BSE SME platform on January 22, 2025.

Company's Financial Performance Rikhav Securities has demonstrated steady financial growth over the past few years. Revenues from operations for the fiscal year 2024 stood at ₹9,615.83 lakh, up from ₹5,452.43 lakh in FY 2022. The EBITDA for FY 2024 was ₹6,601.79 lakh, reflecting healthy operational profitability.

The company's Profit After Tax (PAT) for FY 2024 was ₹5,037.32 lakh, showing a significant increase compared to ₹1,957.17 lakh in FY 2022. Return on Equity (ROE) and Return on Net Worth (RoNW) for FY 2024 were strong at 36.60% and 30.89%, respectively.

The pre-issue earnings per share (EPS) for FY 2024 stands at ₹14.23, and the post-issue EPS is projected to be ₹11.14. The P/E ratio pre-issue is 6.04x, and post-issue it rises to 7.72x, which is favorable compared to the industry average of 20x.

Investment Recommendation Given the strong financials, GMP trends, and the experience of the promoters, Rikhav Securities presents a solid investment opportunity for those looking to enter the equity broking space. The IPO price is attractive compared to the industry’s P/E ratio, and the company’s strong ROE and ROCE suggest that it is well-positioned for future growth.

Considering the GMP and financial metrics, we recommend investors to consider applying for the Rikhav Securities IPO, especially those looking for short-term listing gains and long-term growth prospects in the broking sector.

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