Rikhav Securities IPO is set to raise ₹88.82 crore through a book-built issue. The offering includes a fresh issue of 83.28 lakh shares amounting to ₹71.62 crore and an offer for sale of 20.00 lakh shares totaling ₹17.20 crore. The IPO will open for subscription on January 15, 2025, and close on January 17, 2025.
The price band for the issue is ₹82 to ₹86 per share, with a minimum application lot size of 1,600 shares. Retail investors need to invest at least ₹1,37,600, while high-net-worth individuals must apply for a minimum of two lots, requiring an investment of ₹2,75,200.
The shares are expected to be allotted on January 20, 2025, with the listing on the BSE SME platform slated for January 22, 2025. Smart Horizon Capital Advisors Private Limited is the lead manager, and Link Intime India Private Ltd is serving as the registrar for the IPO. Shreni Shares Limited has been appointed as the market maker, ensuring liquidity for the shares post-listing.
This IPO offers investors an opportunity to participate in a promising venture with defined investment thresholds.
Industry Outlook
- India's financial services industry is witnessing rapid expansion, driven by strong growth in existing firms and new entrants. As of March 2024, mutual fund assets under management (AUM) stood at ₹53.40 lakh crore, showcasing robust participation in the capital markets. SIP inflows during FY24 amounted to ₹2 lakh crore, reflecting increased retail investor engagement.
- Government initiatives like the Credit Guarantee Fund for MSMEs and MUDRA loans have further bolstered financial inclusion, ensuring easier access to capital for businesses. The Unified Payments Interface (UPI) recorded 12.10 billion transactions worth ₹18.28 lakh crore in February 2024, highlighting the digital transformation of India’s payment ecosystem.
Rikhav Securities IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- The funds will be used to meet incremental working capital needs, supporting smooth business operations and growth.
- Proceeds will finance the purchase of IT software, computers, and laptops, enhancing technological infrastructure.
- The remaining portion of the funds will be allocated for general corporate purposes.
About Rikhav Securities Limited
Rikhav Securities Limited (RSL), established in 1995, is a prominent player in the Indian financial services sector, specialising in equity broking, investment, and trading activities. Registered with SEBI as a stockbroker, RSL holds memberships with major exchanges including BSE, NSE, and MCX. The company offers diverse services such as cash delivery, intra-day trading, futures, options, and IPO participation. Additionally, it provides depository services for opening and maintaining demat accounts.
RSL is a Self-Clearing Member of ICCL and NCL, ensuring seamless trade settlements. It also serves as a mutual fund advisor, guiding clients through investment decisions. The company’s market-making activities, initiated in 2012, support SME liquidity by providing two-way quotes, with mandates completed for 66 companies on SME platforms.
Proprietary investments form another pillar of RSL’s business, focusing on securities, derivatives, and currencies with high liquidity. The company operates through online platforms and a network of authorised persons, spanning several Indian pin codes.
Recent advancements include a mobile application launched in 2024 and a fully digital KYC process. By combining cutting-edge technology and deep industry expertise, RSL is well-positioned to benefit from the evolving Indian financial market and digital transformation, ensuring comprehensive client services and sustained growth.
How To Check the Allotment Status of the Rikhav Securities IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Rikhav Securities IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Rikhav Securities IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Rikhav Securities IPO
Registered office: Office No. 922 - A, 9th Floor, P. J. Towers, Dalal Street, Fort, Mumbai - 400 001, Maharashtra, India
Phone: 022 - 69078300
E-mail: investor@rikhav.in
Rikhav Securities IPO Reservation
|
Investor Category |
Shares Offered |
|
QIB Shares |
Not more than 50% of the Net Issue |
|
NII (HNI) Shares |
Not more than 15% of the Net Issue |
|
Retail Shares |
Not less than 35% of the Net Issue |
Rikhav Securities IPO Anchor Investors Details
|
Bid Date |
January 14, 2025 |
|
Shares Offered |
29,20,000 |
|
Anchor Portion Size (In ₹ Cr.) |
25.11 |
|
Anchor lock-in period end date for 50% shares (30 Days) |
February 20, 2025 |
|
Anchor lock-in period end date for remaining shares (90 Days) |
April 21, 2025 |
Rikhav Securities IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
1,600 |
₹1,37,600 |
|
Retail (Max) |
1 |
1,600 |
₹1,37,600 |
|
HNI (Min) |
2 |
3,200 |
₹2,75,200 |
Rikhav Securities IPO Promoter Holding
The promoters of the company are Mr Hitesh Himatlal Lakhani, Mr Rajendra N Shah, Ms Bharti Hitesh Lakhani, Ms Vaishali R Shah, Mr Deep Hitesh Lakhani, Mr Monil Rajendra Shah and M/s. Hitesh Himatlal Lakhani HUF.
|
Share Holding Pre-Issue |
90.55% |
|
Share Holding Post Issue |
65.63% |
Key Performance Indicators for Rikhav Securities IPO
As of March 31, 2024, the market capitalisation of Rikhav Securities's IPO is ₹329.31 crore. Here are the KPIs of Rikhav Securities:
|
KPI |
Value |
|
ROE (%) |
36.60 |
|
ROCE (%) |
29.48 |
|
Debt to Equity Ratio (x) |
0.35 |
|
RoNW (%) |
30.89 |
|
PAT Margin (%) |
40.94 |
|
Price to Book Value (x) |
1.87 |
Price Metrics
|
Metric |
Pre-IPO |
Post-IPO |
|
EPS (₹) |
14.23 |
26.31 |
|
P/E (x) |
6.04 |
3.27 |
Note: Pre-IPO EPS is based on the pre-issue shareholding as per the RHP and FY earnings as of March 31, 2024. Post-issue EPS considers post-issue shareholding and annualised earnings as of September 30, 2024, detailed in the RHP.
Rikhav Securities IPO Prospectus
Rikhav Securities IPO Registrar and Lead Managers
Rikhav Securities IPO Lead Managers
- Smart Horizon Capital Advisors Private Limited
Registrar for Rikhav Securities IPO
Link Intime India Private Ltd
- Contact Number: +91-22-4918 6270
- Email Address: rikhav.smeipo@linkintime.co.in
Rikhav Securities IPO Registrar
Financial Performance of Rikhav Securities Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 10,416.17 | 4,946.76 |
| Profit After Tax (PAT) (in ₹ lakh) | 4,264.63 | 1,957.17 |
| Debt to Equity Ratio (x) | 0.35 | 0.10 |
| Net Worth (in ₹ lakh) | 13,807.74 | 9,496.21 |
| Return on Equity (%) | 36.60 | 22.91 |
| Return on Capital Employed (%) | 29.48 | 26.68 |
| Current Ratio (x) | 0.90 | 1.17 |
| Earning Per Share (EPS)-in absolute ₹ | 14.23 | 6.38 |
Know before investing
Strengths
5Strong client relationships drive sustainable business growth with repeat customers.
The integrated financial services platform includes equity, derivatives, commodities, and currency.
Comprehensive risk management ensures operational stability and market adaptability.
An experienced leadership team enhances business execution and market insight.
Strategic focus on institutional and HNI broking supports revenue diversification.
Risks
5Adverse outcomes of ongoing litigation may impact business operations and reputation.
Regulatory penalties and compliance failures could affect financial performance.
Dependence on IT systems makes the business vulnerable to technical failures.
Fraudulent transactions by clients may lead to costly regulatory disputes.
Negative cash flows from investing activities could hinder business growth.
Rikhav Securities Limited Peer Comparison
| Company Name | EPS (Basic) | EPS (Diluted) | P/E (x) | RoNW (%) |
|---|---|---|---|---|
| Rikhav Securities Limited | 14.23 | 14.23 | - | 30.89 |
| Alacrity Securities Limited | 5.43 | 5.43 | 29.09 | 25.42 |
| Angel One Limited | 134.21 | 131.81 | 20.57 | 37.04 |
| Share India Securities Limited | 25.41 | 21.83 | 11.99 | 24.37 |
| Pune E – Stock Broking Limited | 11.04 | 11.04 | 16.68 | 9.77 |
