Rikhav Securities IPO: If you have been following the stock market, then you may have heard the excitement surrounding the Rikhav Securities IPO. As the IPO is set to close for subscription on Friday, January 17, 2025, investors are keen to find out whether this new listing will prove to be rewarding. However, what has garnered the attention of lots of people is the grey market premium (GMP) and its unlisted shares that are doing extremely well. But does this IPO live up to the hype, and is it right for you? Let’s break it down.
Eye on the Rikhav Securities IPO: What’s Inside
The oldest member of financial services in India, Rikhav Securities, is all set to open an IPO with a fresh issue of 8.32 million equity shares and an offer for sale (OFS) of 2 million equity shares. The price band of the IPO is Rs 82-86 per share, and the lot size is 1,600 shares. That means if you are a retail investor wanting to join the party, you have to put in Rs 1,37,600 at the upper end of the price band.
Rikhav Securities IPO: The Grey Market Buzz
Before we get into the nitty-gritty, let’s discuss the grey market—the unregulated market for trading shares of companies ahead of them getting listed on the stock exchange. And it’s here where things get interesting. As per grey market tracking sources, Rikhav Securities shares were available at Rs 171 per share, which reflects a grey market premium (GMP) of Rs 85. Translated in what is then a mind-boggling 98.84% premium to the top of the issue price, it has investors licking their lips.
The grey market is no doubt a good barometer of investor sentiment, though. In the grey market, if a stock is getting a high premium, then there is huge demand/enthusiasm for the IPO. For Rikhav Securities, the high GMP has created a belief among many that stock can make a good debut on the BSE SME platform—a platform catering to small and medium enterprises (SMEs).
Rikhav Securities IPO: The Response from Investors
So what is the response of investors?” It is quite favorable, the answer. The Rs 1,361.71 crore initial public offering (IPO) of the company, which was opened for public subscription on January 15, 2025, has received a subscription of approximately 36 times by the close of business on January 16 itself. Such indicates heavy interest in the company’s stock, and investors are excited to ride its growth story.
And for investors that want to bid for shares, they should know that the IPO allows them to bid for at least 1,600 shares and that they may apply in multiples thereof. Investing Rs 1,37,600 to buy one lot at the upper price band (Rs 86 per share).
And it’s not a small number of cases, but with the significant grey market premium, a lot of investors are willing to take the plunge. But it’s important to balance the potential rewards against the risks. Although demand is strong, the stock’s post-listing performance will be influenced by factors including market conditions and the company’s likely future growth.
What will Rikhav Securities do with the proceeds?
The money raised through the fresh issue will be utilized for working capital requirements, capital expenditure on IT infrastructure, and general corporate purposes. The company has said that the proceeds from the offer for sale (OFS) will not be received by Rikhav Securities and that the proceeds will go to selling shareholders after expenses and taxes related to the offer are paid.
