Rikhav Securities IPO Day 1: BSE SME issue subscribed over 7.8 times, retail portion booked 13.6x

Rikhav Securities Limited garnered strong demand for its initial public offering (IPO) on Wednesday, January 15, as the issue was fully subscribed within hours of launch. The retail investors showed the highest demand for the IPO.

The BSE SME issue will close for bidding on Friday, January 17. The financial services provider aims to raise ₹88.82 crore from investors through its maiden share sale.

The IPO attracted bids for over 5.82 crore shares against 74.08 lakh shares on offer, as per the BSE data. The issue was overall booked 7.87 times.

Rikhav Securities IPO received bids for over 4.71 crore shares against 34.48 lakh shares on offer in the retail category. The retail quota was booked 13.66 times. The Non-Institutional Investors (NIIs) subscribed their segment 5.59 times with bids for 1.11 crore shares against 20.04 lakh shares on offer. The company did not receive any bid from the Qualified Institutional Buyers (QIBs), compared to the reserved portion of 19.55 lakh shares.

Here’s a look at all the key details about the issue for the investors interested in applying for the shares of Rikhav Securities Ltd.

Rikhav Securities IPO price band and other details

Rikhav Securities IPO comprises a fresh issue of 83.28 lakh shares, worth up to ₹71.62 crore, and an offer-for-sale (OFS) of 20 lakh shares, aggregating to ₹17.2 crore.

The company has fixed the price band at ₹82 to ₹86 per share for the IPO. The minimum lot size is 1,600 shares for the retail investors, amounting to an investment of at least ₹1,37,600.

Smart Horizon Capital Advisors Private Ltd is the book-running lead manager of the IPO, while Link Intime India Private Ltd is the registrar for the issue. The market maker for the IPO is Shreni Shares Ltd.

Rikhav Securities IPO key dates

The IPO allotment status is expected to be finalised on Monday, January 20. Refunds are scheduled to be processed on Tuesday, January 21. Shares will also be credited to the Demat accounts of the successful bidders on the same day.

The IPO listing date has been tentatively fixed as January 22. Shares of the company will be listed on the BSE SME platform.

About Rikhav Securities and use of IPO proceeds

Rikhav Securities is a prominent player in the financial services sector. The company specialises in brokerage, banking and proprietary investment services. It was registered as a Market Maker with the BSE in 2012, and then with the National Stock Exchange of India (NSE) in 2016.

Its market-making activities support newly listed companies by facilitating the buying and selling of their securities. The company is actively involved in proprietary investments across various securities, including equities, derivatives and currencies, with a focus on arbitrage opportunities.

As per Rikhav Securities’ RHP, the company will be using the proceeds from the IPO to fund its incremental working capital requirements as well as capital expenditure towards the purchase of IT software, computers and laptops. A portion of the funds will be used for general corporate purposes.

Rikhav Securities key financials

The financial services provider's revenue from operations stood at ₹92.86 crore for the July-September quarter of the current financial year. Its profit after tax (PAT) was recorded at ₹50.37 crore during the same period.

For the financial year ended March 31, 2024, Rikhav Securities’ revenue from operations stood at ₹104.16 crore compared to ₹49.47 crore in the preceding fiscal. The company’s net profit for FY24 increased more than two times to ₹42.64 crore compared to ₹19.57 crore in FY23.