Rikhav Securities Limited, a player in the financial services space, is gearing up for its market debut with an initial public offering (IPO) valued at ₹88.82 crores. This offering comprises a fresh issue of 83.28 lakh shares worth ₹71.62 crores, alongside an offer for sale of 20 lakh shares amounting to ₹17.20 crores. The subscription window will open on January 15, 2025, and close on January 17, 2025. As the company prepares for its listing on the BSE SME platform, slated for January 22, 2025, investors have a unique opportunity to be part of its growth trajectory in the dynamic financial services sector.
Rikhav Securities is offering equity shares with a face value of ₹5, priced within a range of ₹82 to ₹86 per share, and a lot size of 1,600 shares. Retail investors can participate with a minimum investment of ₹137,600 for one lot, while High Net-worth Individuals (HNIs) are invited to subscribe with a minimum of ₹275,200 for two lots. The company has designed a fast-paced post-subscription process, with share allotment notifications set for January 20, 2025. This IPO represents a promising opportunity for investors looking to tap into India’s growing financial services market. Don’t miss out on being a part of this exciting journey—consider making your move now.
Rikhav Securities Limited IPO is a fundraise worth ₹88.82 crores comprising a fresh issue and an offer for sale with 524,800 shares reserved for the market maker Shreni Shares Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from January 15, 2025, to January 17, 2025, providing an opportunity for investors looking to gain a stake in the financial services space.
| Rikhav Securities IPO date | January 15, 2025 - January 17, 2025 |
| Price band / Fixed price | ₹82 to ₹86 per share |
| Face value | ₹15 per share |
| Lot size | 1,600 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 83,28,000 shares amounting to ₹71.62 crores |
| Offer for Sale (OFS) | 20,00,000 shares amounting to ₹17.20 crores |
| Total issue size | 1,03,28,000 shares amounting to ₹88.82 crores |
| Listing at | BSE SME |
| Market maker portion | 524,800 - Shreni Shares Ltd |
| Shareholding post-issue | 3,82,92,000 shares |
| Shareholding pre-issue | 2,99,64,000 shares |
The Rikhav Securities Limited IPO opens for subscription on January 15, 2025, and closes on January 17, 2025, with allotment scheduled for January 20, 2025.
| IPO open date | January 15, 2025 (Wednesday) |
| IPO close date | January 17, 2025 (Friday) |
| Basis of allotment | January 20, 2025 (Monday) |
| Initiation of refunds | January 21, 2025 (Tuesday) |
| Credit of shares to Demat account | January 21, 2025 (Tuesday) |
| Listing date on BSE / NSE SME | January 22, 2025 (Wednesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on January 17, 2025 (Friday) |
Rikhav Securities Limited, established in 1995, is a leading financial services provider in India, offering brokerage, investment, and banking solutions. The company is registered with SEBI as a stockbroker and holds memberships with major exchanges, including the BSE, NSE, and MCX. Its offerings cover a broad spectrum, such as equity broking, intra-day trading, futures, options, and cash delivery services. Additionally, Rikhav engages in derivatives and commodity trading and ensures smooth trade settlements as a Self-Clearing Member with the Indian Clearing Corporation and NSE Clearing.
The company also supports clients in participating in IPOs and provides depository services for demat accounts. As mutual fund advisors, Rikhav guides clients in making informed investment choices. Furthermore, the company plays a vital role in market-making activities to enhance liquidity. As of September 30, 2024, Rikhav Securities employs approximately 394 people to manage its daily operations across various functions such as administration, legal, and accounting.
The company intends to use the net proceeds from the fresh offer for three primary purposes: to meet its increased working capital needs, fund capital expenditures for the purchase of IT software, computers, and laptops, and for general corporate purposes.
The Rikhav Securities Limited IPO’s key performance indicators, as of March 31, 2024, reflect the company's financial health with a Return on Equity of 36.60%, Return on Capital Employed (ROCE) at 29.48% and a Debt-to-Equity ratio of 0.35. The Return on Net-Worth (RoNW) stands at 30.89%, and the PAT Margin was 40.94%. The Price to Book Value was 1.87. The company’s market capitalisation is ₹329.31 crore.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 9,615.83 | 11,134.26 | 5,452.43 | 4,298.31 |
| Assets | 33,791.49 | 30,206.82 | 18,772.01 | 18,070.69 |
| Net Worth | 18,845.06 | 13,807.74 | 9,496.21 | 7,585.94 |
| Profit After Tax | 5,037.32 | 4,264.63 | 1,910.27 | 1,762.47 |
| Reserves & Surplus | 17,346.86 | 12,309.54 | 7,998.01 | 7,086.54 |
| Total Borrowing | 2,598.06 | 4,806.11 | 994.27 | 1,506.12 |
Amount in ₹ lakhs
The pre-IPO EPS is at ₹14.23 while the post-IPO EPS will be ₹26.31. Similarly, the pre-IPO Price to Earnings ratio is 6.04 and will become 3.27 post-IPO.
Rikhav Securities Limited has cultivated strong, long-term relationships with its clients, which ensures consistent business growth and client loyalty. The company's integrated financial services platform offers a comprehensive range of products, including equity, derivatives, and commodities, all under one roof, making it a one-stop destination for diverse investment needs.
Additionally, its experienced management team has a proven track record of executing strategies successfully, driving the company's operational efficiency. Rikhav's membership with major exchanges such as the NSE, BSE, and MCX, alongside its SEBI registration, bolsters its credibility in the market. Furthermore, the company’s robust infrastructure, including its self-clearing membership, ensures seamless trade settlements and enhances operational reliability.
Despite its strengths, Rikhav Securities faces certain challenges. The company is susceptible to litigation risks, with ongoing cases that could potentially harm its reputation and financial standing if outcomes are unfavorable. Past regulatory penalties and non-compliance issues add another layer of risk, as future penalties could directly affect profitability and operations.
Additionally, the company operates in a highly competitive industry, where its relatively limited geographical presence compared to larger brokers could constrain growth. Heavy reliance on stock market performance also introduces vulnerability to market fluctuations. Moreover, Rikhav is dependent on its IT systems for business operations, and any technology failures or security breaches could disrupt its services. Lastly, regulatory changes and evolving compliance requirements continue to pose a risk, with potential penalties for non-compliance.
Investing early in Rikhav Securities Limited offers an exciting opportunity to be part of the company’s growth journey in the financial services sector. However, potential investors should thoroughly evaluate key aspects such as the company’s operational history, financial stability, industry trends, and long-term strategy. It’s crucial to align this with individual investment goals and risk tolerance. To make an informed decision, reviewing the offer document and seeking professional advice is strongly recommended before participating in the IPO.
What is the Rikhav Securities Limited IPO?
The Rikhav Securities Limited IPO is an BSE SME offering consisting of a fresh issue of 83.28 lakh shares and an offer for sale of 20 lakh shares with a face value of ₹5 per share, aiming to raise a total of ₹88.82 crores. The price band has been set between ₹82 to ₹86 per share, with a minimum order quantity of 1,600 shares. This IPO will be open for subscription from January 15, 2025, to January 17, 2025. GSmart Horizon Capital Advisors Private Limited is the book-running lead manager, Link Intime India Private Ltd is the registrar while Shreni Shares Limited is the market maker.
When will the Rikhav Securities IPO open?
The Rikhav Securities Limited IPO will open for subscription on January 15, 2025, and will close on January 17, 2025.
When is the Rikhav Securities IPO listing date?
The tentative listing date for the Rikhav Securities Limited IPO is Wednesday, January 22, 2025.
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