Rikhav Securities Ltd. made an impressive debut on the BSE SME platform on January 22, 2025, with shares listing at ₹163.4, reflecting a robust 90% premium over the IPO price of ₹86. The stock surged as high as ₹178, signaling strong investor confidence in the company’s performance and growth potential.

IPO Overview

Rikhav Securities offered a book-built issue amounting to ₹88.82 crores, with 83.28 lakh fresh shares and 20 lakh shares offered as part of an Offer for Sale (OFS). The IPO subscription period was from January 15 to January 17, 2025, and the shares were priced within a band of ₹82-₹86 per share.

The IPO saw an oversubscription of 285.33 times, indicating massive investor demand. Anchor investors played a key role by subscribing to ₹25.11 crores worth of shares at the upper price band of ₹86.

Business and Services

Rikhav Securities Ltd. is a prominent player in the equity broking and investment sectors. The company offers a comprehensive range of services, including:

• Equity broking: Cash delivery, intra-day trading, futures, and options
• Memberships: Registered with SEBI, and holding memberships with BSE, NSE, and MCX

Their expertise and robust service offerings have positioned them as a trusted name in the broking industry, catering to both retail and institutional investors.

Financial Performance

Rikhav Securities has shown consistent growth in its financials, with the following performance indicators:

• Revenue for FY2024: ₹11,134.26 lakh
• EBITDA for FY2024: ₹5,542.96 lakh
• Profit after Tax (PAT) for FY2024: ₹4,264.63 lakh

The company's pre-issue EPS stands at ₹14.23, and the post-issue EPS for FY24 is ₹11.14. The P/E ratio before the issue is 6.04x, compared to an industry average of 20x, indicating the IPO is attractively priced.

Grey Market Premium (GMP) Trends

The Grey Market Premium (GMP) for Rikhav Securities showed an anticipated listing gain of 60.46%, with an expected listing price of ₹138. However, the shares debuted even higher, reinforcing the market’s positive outlook on the company's prospects.

IPO Objectives

The funds raised through the IPO are earmarked for:

1. Incremental working capital: ₹46 crore
2. Capital expenditure: ₹4.12 crore for IT software, computers, and laptops
3. General corporate purposes

Subscription and Allotment

The IPO attracted significant interest across various investor categories:

• Retail Investors: Minimum investment of ₹1,37,600 for 1,600 shares
• High-Net-Worth Individuals (HNIs): Minimum investment of ₹2,75,200 for 3,200 shares

The allotment date was finalized on January 20, 2025, and investors could easily check their allotment status via the registrar's website.

Market Debut

The strong debut of Rikhav Securities signals investor confidence in the equity broking sector and reflects the company's solid fundamentals and growth trajectory. The 285 times oversubscription and the 90% listing premium are strong indicators of the company’s potential for long-term success.

Rikhav Securities’ performance on its debut day highlights the growing demand for equity broking and investment-related services. Investors can continue to monitor the company’s financial performance and growth strategies as it establishes itself in the competitive broking market.

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