Rishabh Instruments Limited IPO

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Rishabh Instrument Limited is a global energy efficiency solution company focused on electrical automation, metering and measurement, precision engineered products, with diverse applications across industries including power, automotive and industrial sectors. They supply a wide range of electrical measurement and process optimization equipment, and are engaged in designing, developing and manufacturing, and sale of devices significantly under their own brand across several sectors.

They provide comprehensive solutions to their customers looking for cost-effective ways to measure, control, record, analyse and optimise energy and processes through their array of products.
It is a global leader in manufacturing and supply of analog panel meters, and they are among the leading global companies in terms of manufacturing and supply of low voltage current transformers.

They have a vertically integrated player involved in designing, developing, manufacturing and supplying
(a) electrical automation devices;
(b) metering, control and protection devices;
(c) portable test and measuring instruments;
(d) solar string inverters.

STRENGTHS
(i) Ability to drive technology and innovation through advanced research and development capabilities
(ii) Global engineering solution provider operating in large addressable markets and well positioned to benefit from mega industrialisation trends
(iii) Vertically integrated operations, backed by strong manufacturing capabilities
(iv) Diversified product portfolio
(v) Wide customer base

Objects of the Rishabh Instruments Limited IPO:

The issue comprises of Fresh Issue & Offer for Sale. The Company proposes to utilize the Net Proceeds towards funding the following objects (collectively, the “Objects”): 1. Financing the cost towards the expansion of Nashik Manufacturing Facility I (“Expansion Project”); and 2. General corporate purposes The total no of shares issues: - a) Fresh Issue is 1,700,680 shares. b) Offer for Sale is 9,428,178 shares.
DRHP of Rishabh Instruments Limited IPO
RHP of Rishabh Instruments Limited IPO

Rishabh Instruments Limited IPO Details:

Open Date: Aug 30 2023
Close Date: Sep 01 2023
Total Shares: 11,128,858
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 490.78 Cr.
Lot Size: 34 Shares
Issue Price: ₹ 418 to ₹441 Per Equity Share
Listing At: NSE,BSE
Listing Date: Sep 11 2023

Promoters And Management:

i. Narendra Joharimal Goliya is the Chairman and Managing Director of the Company. He is the founder and Promoter of the Company. He has been associated with the Company since its incorporation and accordingly has over four decades of experience in the manufacturing and electrical industry. He holds a bachelor’s degree in technology (electrical engineering) from the Indian Institute of Technology, Bombay and a master’s degree in science from the Leland Stanford Junior University. He is also on the board of Nashik Engineering Cluster, Nashik Exhibition and Business Centre and Nashik Manav Sewa Foundation. ii. Parappath Kottekode Ramakrishnan is a Non-Executive Director of the Company. He holds a bachelor’s degree in science (mechanical engineering) from the University of Kerala. He was previously associated with VIP Industries Limited and Madras Rubber Factory Limited. iii. Alipt Sharma is a Non-Executive Nominee Director of the Company. He holds a bachelor’s degree in arts (economics) from the University of Delhi, has completed a post-graduate programme in management from the Indian School of Business, Hyderabad and is an associate member of the Institute of Chartered Accountants of India. He was previously associated with Ambit Private Limited.  

Financials of Rishabh Instruments Limited IPO:

A. Balance Sheet
Particular (In Crore) Mar-21 Mar-22 Mar-23
Equity Share Capital 14.625 14.625 29.25
Reserves 274 315 361
Borrowings 92 97 103
Trade Payables 62 68 83
Other Liabilities 69 70 73
Total Liabilities 224 234 259
Net Block 198 194 193
Capital Work in Progress 2 5 8
Investments 0.2 0.2 0.2
Other Assets 32 32 39
Total NC Assets 232 231 239
Receivables 68 80 121
Inventory 79 128 154
Cash & Bank 118 105 106
Other Assets 14 19 29
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Crore) Mar-21 Mar-22 Mar-23
Sales 390 470 570
Raw Material Cost 149 201 235
Purchases of Stock In Trade 6 13 26
Change in Inventory 1 -17 -5
Employee Cost 115 126 145
Other Expenses 61 74 92
Other Income 13 10 10
EBITDA 70 83 86
EBITDA Margin 17.96% 17.57% 15.16%
Depreciation 21 20 20
Interest 3 3 5
Profit before tax 46 59 61
Tax -10 -10 -11
Net profit 36 50 50
NPM (%) 8.93% 10.35% 8.57%
C. Cash Flow Statement
Particular (In Crore) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 65 76 89
Receivable -7 -8 -41
Inventory -6 -49 -25
Payable 10 6 15
Loans And Advances 4 0 0
Other WC Items -7 -0.4 2
Working Capital Changes -5 -52 -48
Direct Taxes -7 -11 -13
Net Cash Inflow from Operating Activity 53 13 28
Cash from Investing Activity
Fixed assets purchased -35 -16 -30
Fixed assets sold 0.02 0.17 1
Investment sold 9 3 22
Other investing items 5 1.5 4
Net cash inflow from investing activities -21 -11 -3
Cash from Financing Activity
Proceeds from shares -21 0 0
Proceeds from borrowings 10 5 6
Intrest paid fin -3 -3 -5
Dividends paid -0.9 -1.1 -0.9
Other financing items -9 -7 -5
Net Cash Flow 9 -5 20

Comparison With Peers:

As Per RHP there is no listed Companies in India or globally that engage in a business similar to the company.

Recommendation on Rishabh Instruments Limited IPO:

Review and Recommendation of Rishabh Instrument IPO by IZ team is 5/10 Read Review Here

Lead Manager of Rishabh Instruments Limited IPO:

  1. DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd)
  2. Motilal Oswal Investments Advisors Private Limited

Registrar of Rishabh Instruments Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

A-54, MIDC, Opposite MIDC Bus Depot, Andheri (East) Mumbai 400 093, Maharashtra, India; Tel: +91 22 282 54047  

Discussion on Rishabh Instruments Limited IPO:

1 Comment

    The geopolitical conflict between Russia and Ukraine, along with sanctions by the Polish Government, exposes Rishabh Instruments to a significant risk in terms of natural gas supply for its Poland Manufacturing Facility II.

    While a complete cut-off is less likely due to local distribution, the cost of natural gas has spiked in 2023. Moreover, resorting to alternative sources like diesel generators would increase operational costs and potentially affect profitability.

    Reply

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