IPO listing: Ratnaveer Precision debuts at 31% premium; Rishabh Instruments up 4%
Two companies - Ratnaveer Precision Engineering and Rishabh Instruments made their stock market debuts on Monday. While shares of Ratnaveer Precision Engineering, a maker of finished stainless steel products, listed at 31% premium over the issue price, Rishabh Instruments, a manufacturer of measuring instruments, debuted 4% higher against the IPO price.
Shares of Ratnaveer Precision Engineering opened at ₹128 apiece on the BSE, up 30.6% over the issue price of ₹98. On the NSE, the stock listed 25.7% higher at ₹123.2 per share. Post listing, the stock gained as much as 37% to hit a high of ₹134 on the BSE, while the market capitalisation climbed to ₹630 crore.
Meanwhile, Rishabh Instruments belled the day at ₹460, up 4.3% against the IPO price of ₹441 on the BSE, while it opened at ₹460.05 on the NSE. It hit a high and low of ₹469.65 and ₹432.25, respectively on the BSE, while the market capitalisation stood at ₹1,712 crore at the time of reporting.
The strong listing of Ratnaveer Precision was in line with Street estimate as the stock was commanding a grey market premium (GMP) of ₹45 per share over its issue price, a day before its listing.
Ratnaveer Precision Engineering (RPEL), a manufacturer of stainless steel products with a diverse range of products and designs, raised ₹165 crore via IPO route, which opened for bidding between September 4-6. The IPO includes a fresh issue of 1.38 crore equity shares and offer for sale of 30.40 lakh shares by promoters.
The IPO, having a price band of ₹94-99 apiece, was subscribed 93.99 times, with portion reserved for qualified institutional buyers (QIBs) subscribing 133.05 times. The non-institutional investors' (NIIs) quota was booked 135.21 times, while segment for retail investors received 54 times bids.
On the other hand, the listing of Rishabh Instruments was below Street expectation as it was trading at a 15% premium over the issue price in the grey market, a day ahead of the market debut. The IPO was subscribed 31.65 times, which opened between August 30 and September 1. The issue was subscribed 31.29 times by high networth individuals (HNIs), 72.54 times by QIBs, and 8.44 times by retail investors.
Rishabh Instruments, a global energy efficiency solution company that caters to power, automotive, and industrial sectors, raised ₹490 crore via public offering. The offer comprises a fresh issue of equity shares worth ₹75 crore and an offer for sale worth ₹415 crore.
Anubhuti Mishra, Equity Research Analyst at Swastika Investmart, says, “Rishabh Instruments is a multinational company that offers energy efficiency solutions. It has a diverse product portfolio and vertically integrated operations. However, 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 this listing. However, if any high-risk investors want to hold it, they should maintain a stop-loss at the issue price,” he says.
On listing of Ratnaveer Precision, he says, “The IPO was well-received by investors, with the issue being subscribed to 93.99 times. The company's strong fundamentals and good subscription levels are positive factors for this. Investors who participated in the IPO can consider booking profits, and those who want to hold may keep a stop-loss at around 116.”
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