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Rikhav Securities IPO subscribed 52.69 times on Day 3. Check GMP and other details
Team Finance Saathi
17/Jan/2025
What's covered under the Article:
- IPO Details: Price band, subscription period, market cap, and allotment info.
- GMP and Subscription: Expected listing price and real-time updates on the IPO subscription.
- Company Overview: Business focus, financial growth, and key performance indicators.
- IPO Allotment and How to Check Status: Step-by-step guide on checking your allotment.
Rikhav Securities Limited is a prominent player in the equity broking, investing, and trading sectors. The company holds memberships with major exchanges such as BSE, NSE, and MCX. Their services span a wide array of financial activities, including equity broking, cash delivery, intra-day trading, and futures & options. The company is also involved in investment and trading activities, catering to a diverse client base.
Rikhav Securities IPO Overview
The Rikhav Securities IPO is a Book Built Issue amounting to ₹88.82 Crores, consisting of a Fresh Issue of 83.28 lakh shares worth ₹71.62 Crores and an Offer for Sale of 20.00 lakh shares worth ₹17.2 Crores. The IPO opens on January 15, 2025 and closes on January 17, 2025. The shares are expected to be listed on BSE SME on or about January 22, 2025.
- Price Band: ₹82 to ₹86 per share
- Market Capitalization: ₹329.31 Crores at the upper price band of ₹86
- Lot Size: 1,600 shares
- Minimum Investment: ₹1,37,600 for retail investors
- HNI Minimum Investment: ₹2,75,200 (2 lots)
The lead manager for the IPO is SMART HORIZON CAPITAL ADVISORS PRIVATE LIMITED, while LINK INTIME INDIA PRIVATE LIMITED serves as the registrar. Shreni Shares Limited is the designated market maker for the issue.
Grey Market Premium (GMP) & Subscription Trend
The Grey Market Premium (GMP) for Rikhav Securities IPO has shown significant strength. As of January 14, 2025, the GMP stood at ₹52, indicating an expected listing gain of around 60.46%. However, it's important to note that GMP reflects market sentiment and is not a reliable indicator of the final listing price.
Day-Wise GMP Trend:
- 14 Jan 2025: GMP ₹52, expected listing price ₹138 (+60.46%)
- 13 Jan 2025: GMP ₹17, expected listing price ₹103 (+19.76%)
Rikhav Securities IPO Subscription Status
As of 11:00 AM on January 17, 2025, the Rikhav Securities IPO has been subscribed 52.69 times on its final subscription day, reflecting strong demand from investors.
Rikhav Securities IPO Allotment Status
The allotment date for the Rikhav Securities IPO is January 20, 2025. To check the allotment status, follow these steps:
- Visit the Registrar’s website (Link: Registrar Website).
- Select Rikhav Securities Limited IPO from the dropdown list.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
Objectives of the Rikhav Securities IPO
Rikhav Securities plans to use the net proceeds from the IPO for:
- Funding working capital requirements: ₹46 Crores
- Capital expenditures: ₹4.12 Crores for IT infrastructure
- General corporate purposes: Additional funds for business expansion and growth
Rikhav Securities IPO Review
Financial Performance:
- Revenue for FY24 (till Sep 30): ₹9,615.83 Lakh (Growth from ₹4,298.31 Lakh in FY22)
- EBITDA: ₹6,601.79 Lakh (up from ₹2,580.85 Lakh in FY22)
- Profit After Tax (PAT): ₹5,037.32 Lakh (Growth from ₹1,762.47 Lakh in FY22)
The pre-issue P/E ratio of the company is 6.04x, and the post-issue P/E ratio is 7.72x, which is attractive when compared to the industry average of 20x.
Recommendation
Given the company’s solid financials, strong IPO GMP, and reasonable pricing, Rikhav Securities Limited’s IPO offers potential listing gains for investors. With a steady growth trajectory and a strong leadership team, the IPO is worth considering for long-term investors and listing gain seekers.
Final Thoughts: We recommend applying for the Rikhav Securities IPO to benefit from the potential listing gain and strong financial performance in the equity broking and trading market.