Riddhi Display Equipments Launches Rs 25 Crore IPO, Aims for BSE SME Listing
Riddhi Display Equipments, a Gujarat-based manufacturer of display counters and commercial kitchen equipment, has opened its IPO to raise Rs 25 crore. The issue price band is set at Rs 95-100 per share, with subscription closing on September 26. The company plans to list on the BSE SME platform on October 1. The grey market indicates a premium of Rs 4.00, suggesting potential listing gains of 4%. The IPO consists of 24.68 lakh fresh shares, with a minimum investment of Rs 2.40 lakh for retail investors. Riddhi Display Equipments reported strong financial growth with revenue of Rs 25.10 crore and profit after tax of Rs 4.10 crore. The IPO proceeds will be used for expanding manufacturing capabilities and meeting working capital needs.
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Riddhi Display Equipments, a Gujarat-based manufacturer of display counters and commercial kitchen equipment, has opened its Initial Public Offering (IPO) for subscription. The company aims to raise Rs 25 crore through this public issue, which is set to close on September 26.
IPO Details
- Issue Size: Rs 25.00 crore
- Price Band: Rs 95-100 per share
- Subscription Period: Closing on September 26
- Expected Listing Date: October 1 on BSE SME platform
- Market Capitalization: Rs 86.40 crore (at upper price band)
Grey Market Premium
The grey market is showing a premium of Rs 4.00 for Riddhi Display Equipments shares, indicating potential listing gains of 4%.
Offer Structure and Investment Details
- The IPO consists entirely of fresh shares, totaling 24.68 lakh shares.
- Minimum investment requirement for retail investors: Rs 2.40 lakh
Company Overview
Riddhi Display Equipments specializes in manufacturing:
- Display counters
- Commercial kitchen equipment
- Refrigeration equipment
The company operates from its facility in Gujarat, catering to restaurants, hotels, and retail outlets.
Financial Performance
Riddhi Display Equipments has shown strong financial growth:
| Metric | Amount (Rs Crore) | Growth |
|---|---|---|
| Revenue | 25.10 | 33% |
| Profit After Tax | 4.10 | 100% |
| EBITDA | 6.90 | - |
Utilization of IPO Proceeds
The funds raised through the IPO will be allocated for:
- Establishing a new manufacturing unit in Lucknow
- Upgrading the existing Gujarat plant
- Setting up a showroom in Rajkot
- Meeting working capital requirements
Investors interested in the SME sector and the commercial equipment manufacturing industry may find this IPO worth considering. However, as with all investments, it is advisable to conduct thorough research and consult financial advisors before making any investment decisions.
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