Rikhav Securities IPO Listing: Stock lists at 90% premium on BSE SME

Rikhav Securities IPO Listing

Rikhav Securities IPO Listing: A Stellar Debut With Substantial Returns for Investors

Rikhav Securities, a prominent financial services firm, made an exceptional entry onto the BSE SME platform today.

With shares priced at ₹86 in its Initial Public Offering (IPO), the company quickly captivated investors, delivering impressive listing gains.

The ₹71.62 crore IPO, which opened for subscription from January 15-17, witnessed its shares surge by nearly 90% to ₹163.40 on the day of listing.

This early jump in share price set the tone for further growth, as the stock touched its upper circuit limit at ₹171.57 shortly after listing.

By the end of the day, the stock closed at ₹171.55, offering investors a remarkable 100% return on their investment, effectively doubling their money in just one trading session.

A Record-Breaking IPO Subscription: 307 Times Over-Subscribed

The strong market performance of Rikhav Securities’ shares after listing is a direct reflection of the immense interest generated by the IPO.

The offering received an overwhelming response from investors, who flocked to the issue in large numbers.

The IPO was subscribed a jaw-dropping 307 times, highlighting the significant demand for Rikhav Securities’ stock.

This was far above the typical subscription rates seen in many IPOs, indicating strong investor confidence in the company’s potential for growth.

Breaking down the subscription data:

• Qualified Institutional Buyers (QIBs): The QIB segment, which includes large institutional investors, was subscribed 170.92 times. This demonstrates the confidence that institutional investors have in Rikhav Securities’ business model and future prospects.
• Non-Institutional Investors (NIIs): The portion allocated to non-institutional investors was subscribed 616.42 times, a staggering figure that reflects the robust appetite for the stock among high-net-worth individuals and corporate investors.
• Retail Investors: The retail investor segment was also highly popular, with a subscription rate of 251.36 times. This was a strong indicator of the company’s broad appeal to the general public, suggesting that Rikhav Securities has managed to capture the interest of individual investors looking for growth opportunities.

In total, the IPO comprised new shares worth ₹71.62 crore, with an additional 20 lakh shares being sold under the Offer for Sale (OFS) window, where existing shareholders offered their shares to the public.

The funds raised through the new share issuance are intended for expanding the company’s working capital needs, supporting its general corporate purposes, and investing in the purchase of IT infrastructure such as software, computers, and laptops.

An Impressive Debut: Stock Surges Post-Listing

Rikhav Securities’ stock didn’t just list successfully—it made an immediate impact. When the stock started trading on the BSE SME platform, it was listed at ₹163.40, a remarkable 90% gain from the issue price of ₹86.

The stock quickly gained momentum, with buyers snapping up shares, pushing the price to ₹171.57, the upper circuit limit.

The circuit breaker is a mechanism designed to prevent excessive volatility in a stock’s price, and the fact that Rikhav Securities hit the upper circuit within hours of listing is a clear sign of strong market confidence in the company.

By the end of the trading day, Rikhav Securities’ shares closed at ₹171.55, just shy of the upper circuit limit.

This meant that IPO investors saw their investments double, as the shares surged by around 100% in a matter of hours.

This was an extraordinary outcome for retail investors, institutional players, and high-net-worth individuals who had subscribed to the IPO, underscoring the demand for well-managed financial services firms in the Indian capital markets.

Rikhav Securities: A Leading Financial Services Firm with Solid Fundamentals

Rikhav Securities was founded in 1995 and has since grown into a well-established player in the financial services industry.

The company provides a broad range of services, including brokerage, investment advisory, and banking services.

It is a registered member of the Securities and Exchange Board of India (SEBI) and holds memberships across major stock exchanges, including the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), and Metropolitan Stock Exchange (MSE).

These memberships enable Rikhav Securities to offer comprehensive trading and investment solutions to its clients.

One of the key reasons for the overwhelming demand for Rikhav Securities’ IPO is its robust financial performance in recent years.

The company has consistently strengthened its financial position, which has been reflected in its steadily growing profitability and revenue.

In the fiscal year 2022, Rikhav Securities posted a net profit of ₹17.62 crore. This figure grew to ₹19.10 crore in FY 2023, marking a steady increase in profitability.

However, the most impressive growth occurred in FY 2024, when the company’s net profit surged to ₹42.65 crore, a clear indication of its strong operational efficiency and ability to scale its business effectively.

During the same period, Rikhav Securities’ revenue grew at a compound annual growth rate (CAGR) of over 60%, reaching ₹111.34 crore in FY 2024.

This revenue growth is a testament to the company’s strong execution, expanding client base, and increasing market share in the financial services sector.

Looking at the current financial year (2024-25), Rikhav Securities has continued its upward trajectory. In the first half of FY 2024-25 (April-September 2024), the company reported a net profit of ₹50.37 crore, nearly equivalent to the entire net profit for the previous year.

Its revenue during this period reached ₹96.16 crore, putting the company on track to exceed its performance from the previous year.

Strategic Use of IPO Proceeds

The funds raised through the IPO will be used for a variety of strategic purposes aimed at supporting the company’s growth.

A portion of the proceeds will be allocated to meet Rikhav Securities’ increased working capital requirements, which is essential as the company expands its operations.

Additionally, the company plans to invest in technology upgrades, including the purchase of advanced IT software, computers, and laptops, to improve its operational capabilities and enhance its service offerings.

The company’s strong financial position, coupled with its strategic plans to expand its operations and infrastructure, positions Rikhav Securities well for future growth.

The positive market response to its IPO, along with its consistent financial performance, indicates that the company is well on its way to becoming a leading player in India’s rapidly growing financial services sector.

Final Remarks: A Bright Future Ahead

The remarkable debut of Rikhav Securities on the BSE SME platform is a clear signal that investors see tremendous potential in the company’s business model and future prospects.

With an overwhelming response to its IPO and substantial gains on the first day of listing, Rikhav Securities has shown that it is a company to watch in the coming years.

As the company continues to scale its operations, invest in technology, and expand its market reach, it is well-positioned to capitalize on the growing demand for financial services in India.

The strong financial performance, along with the strategic use of IPO proceeds, sets a solid foundation for future growth, making Rikhav Securities an attractive investment opportunity for those looking to participate in the Indian financial services sector.