Rishabh Instruments makes a tepid debut. What should investors do?
iStock
Synopsis
Experts advised investors, who received IPO allotment, to book profits and evaluate the financial performance for the next few quarters for an investment decision
By Akash Podishetti, ETMarkets.com
Shares of Rishabh Instruments made a tepid debut on the exchanges on Monday with marginal gains of around 4-5%. The weak listing was mainly on account of rich valuations.
Experts advised investors, who received IPO allotment, to book profits and evaluate the financial performance for the next few quarters for an investment decision.
“With exports forming a major part of revenues of the company, we would prefer to be on the sidelines against the backdrop of a weakening global macroeconomic scenario. We advise investors who have received allotment to book profits on the listing day," said Parth Shah, Research Analyst, StoxBox.
Rishabh Instruments offers energy efficiency solutions with a diverse product portfolio and vertically integrated operations.
The company is a global leader in the 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.
However, analysts say the company faces risks related to international exposure and any shortage of production inputs like semiconductors.
"The IPO valuation was also slightly high. We recommend exiting the position after listing. However, if any high-risk investors want to hold it, they should maintain a stop-loss at the issue price," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.
The proceeds from the fresh issuance will be used towards financing the cost towards the expansion of Nashik manufacturing facility and general corporate purposes.
The company's revenue from operations increased to Rs 569 crore in fiscal 2023, whereas profit after tax came in at Rs 49.6 crore in FY23.
DAM Capital Advisors, Mirae Asset Capital Markets (India) and Motilal Oswal Investment Advisors were the book-running lead managers and KFin Technologies acted as the registrar to the issue
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The stock, which opened at Rs 460 on the BSE, fell nearly 4% after listing and closed flat over the issue price.Experts advised investors, who received IPO allotment, to book profits and evaluate the financial performance for the next few quarters for an investment decision.
“With exports forming a major part of revenues of the company, we would prefer to be on the sidelines against the backdrop of a weakening global macroeconomic scenario. We advise investors who have received allotment to book profits on the listing day," said Parth Shah, Research Analyst, StoxBox.
Rishabh Instruments offers energy efficiency solutions with a diverse product portfolio and vertically integrated operations.
The company is a global leader in the 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.
ADVERTISEMENT
However, analysts say the company faces risks related to international exposure and any shortage of production inputs like semiconductors.
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"The IPO valuation was also slightly high. We recommend exiting the position after listing. However, if any high-risk investors want to hold it, they should maintain a stop-loss at the issue price," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.
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The proceeds from the fresh issuance will be used towards financing the cost towards the expansion of Nashik manufacturing facility and general corporate purposes.
The company's revenue from operations increased to Rs 569 crore in fiscal 2023, whereas profit after tax came in at Rs 49.6 crore in FY23.
ADVERTISEMENT
DAM Capital Advisors, Mirae Asset Capital Markets (India) and Motilal Oswal Investment Advisors were the book-running lead managers and KFin Technologies acted as the registrar to the issue
