Rishabh Instrument submits draught IPO papers to Sebi in order to raise cash

Rishabh Instruments Ltd, situated in Nashik, has filed a draught red herring prospectus with the Securities and Exchange Board of India in order to generate capital through initial public offerings.

The IPO includes a fresh issue of Rs 75 crore as well as an offer for sale of up to 9.42 million shares by the company's existing shareholders and promoters.

The OFS includes up to 2.5 million shares from Asha Narendra Goliya, up to 4 lakh shares from Rishabh Narendra Goliya, up to 5.18 lakh shares from Narendra Rishabh Goliya (HUF), and up to 6 million shares from South Asia Clean Energy Fund (SACEF), a South Asia-focused SME fund managed by Global Environment Fund (GEF).

The issue's main managers are Dam Capital Advisors Ltd, Mirae Asset Capital Markets India, and Motilal Oswal Investment Advisors.

The company is a multifaceted player that designs, develops, manufactures, and sells electrical automation devices, metering, control, and protection devices, portable test and measuring instruments, and solar string inverters.

Furthermore, through its subsidiary, Lumel Alucast, it manufactures and distributes aluminium high pressure die casting. As of March 2022, it had two manufacturing sites in Nashik and a combined installed capacity of 4.19 million units per year.

The proceeds of the Rs 59.50 crore offer would be utilised to expand its manufacturing facility in order to build and strengthen key capabilities as well as capacity for producing electrical automation products, metering, control and protection devices, and solar string inverters. according to the DRHP.

Revenue from operations was Rs 470.25 crore in FY22, up from Rs 389.96 crore the previous year. The net profit for the period was Rs 49.65 crore, compared to Rs 35.94 crore the previous year.