Rikhav Securities, a well-established player in the financial services sector, has launched its eagerly awaited BSE SME IPO. Set to open on January 15, 2025, and close on January 17, 2025, this IPO has piqued the interest of investors from various categories. In this blog, we will delve into the details of Rikhav Securities’ IPO, the company’s profile, and its growth prospects.
Company Background
Founded in 1995, Rikhav Securities is a financial services firm registered with SEBI as a stockbroker. With memberships in BSE, NSE, and MCX, the company offers comprehensive financial services, including equity broking, cash delivery, intra-day trading, futures, and options. Alongside, it also facilitates participation in IPOs and offers depository services for demat accounts. Over time, Rikhav Securities has ventured into proprietary investments in various tradable securities, derivatives, and commodities, enhancing its service portfolio.
The firm’s client-centric approach, commitment to excellence, and adherence to regulatory standards have cemented its reputation in the industry. Let’s dive into the specifics of their recent IPO.
IPO Details of Rikhav Securities BSE SME IPO
The Rikhav Securities IPO is worth ₹88.82 crores. Here’s a detailed breakdown:
| Parameter | Details |
|---|---|
| Total Issue Size | ₹88.82 crores |
| Fresh Issue | ₹71.62 crores |
| Offer for Sale (OFS) | ₹17.20 crores |
| Price Band | ₹82 to ₹86 per share |
| Minimum Lot Size | 1,600 shares (₹1,37,600 minimum investment) |
| Listing Date | Expected on January 22, 2025 |
| Subscription Dates | January 15 – 17, 2025 |
| Anchor Investors Date | January 14, 2025 |
| Grey Market Premium (GMP) | ₹70 |
Subscription Overview:
| Investor Category | Subscription Status |
|---|---|
| Retail Investors | 6.31 times |
| Non-Institutional Investors (NII) | 4.5 times |
| Qualified Institutional Buyers (QIBs) | Yet to be subscribed |
The impressive grey market premium (GMP) of ₹70, indicating a potential listing price of ₹156, reflects robust market sentiment and investor confidence.
Pre-IPO Interest
Ahead of its IPO, Rikhav Securities raised ₹25.11 crores from anchor investors, underscoring strong demand and confidence in the company’s prospects. The anchor investors include a mix of qualified institutional buyers (QIBs) and high-net-worth individuals (HNIs), further validating the company’s market position.
Use of Proceeds
The proceeds from the IPO are planned to be strategically allocated:
- Working Capital Requirements: A significant portion of the funds will be directed towards enhancing the company’s working capital, ensuring seamless operations and supporting business growth.
- Capital Expenditure: Investment in acquiring new IT infrastructure, such as computers, laptops, and software, to bolster technological capabilities.
- General Corporate Purposes: The remaining funds will be used for general corporate purposes, providing the company with flexibility to address various business needs and opportunities.
Also read: Laxmi Dental’s IPO: Price, GMP, Date, Details and Review – BSE, NSE
Growth Potential and Market Position
Rikhav Securities has carved out a strong niche in the Indian financial services market. Several factors contribute to its growth potential and robust market position:
| Factor | Details |
|---|---|
| Diverse Service Offerings | Comprehensive range of financial services, including equity broking, cash delivery, intra-day trading, futures, and options. |
| Strong Client Base | Long-lasting relationships with clients and a commitment to quality service. |
| Technological Advancements | Continuous investment in IT infrastructure to enhance service delivery and operational efficiency. |
| Market Maker Role | Actively supports market-making for newly listed securities, ensuring liquidity and market efficiency. |
Financial Performance
Rikhav Securities has consistently demonstrated strong financial performance, reflecting its sound market position and operational efficiency. Key financial indicators include:
| Indicator | Details |
|---|---|
| Revenue Growth | Rs 9,616 lakhs as of September 2024, showing consistent growth. |
| Profit After Tax | Rs 5,037 lakhs as of September 2024, reflecting strong profitability. |
| Return on Equity (ROE) | 30.85% as of September 2024, indicating efficient use of equity capital. |
Conclusion
Rikhav Securities’ BSE SME IPO has attracted substantial interest from diverse investor categories, underscoring confidence in the company’s solid market position and potential for growth. For investors looking to diversify their portfolios with a prominent player in the financial services sector, this IPO presents a promising opportunity.
It’s essential for investors to carefully consider their risk tolerance and investment goals before making any decisions. Consulting with a financial advisor is always advisable to understand the potential risks and rewards associated with investing in an IPO.
With its wide range of financial services, robust client base, and continuous focus on technological advancements, Rikhav Securities is set for a notable debut on the BSE SME platform. As the company continues to expand and innovate, it solidifies its reputation as a leader in the financial services industry.