• Source:JND
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The Initial Public Offering of Rikhav Securities Limited, a stock brokerage firm, will be available for subscription from January 15 through January 17, 2025. Notably, anchor investors will receive early access to the offering today, January 14. The company has set a price of Rs 86 each for the share sale, with the total fundraising target reaching Rs 88.82 crore.

The company has reserved 50 per cent size of the IPO for Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs) will have 15% of the total allocation, while retail investors will be offered the remaining 35%. The shares of the company are scheduled to be listed on the BSE SME platform on January 12.

Overview of Issue Structure and Fund Utilization

This IPO combines fresh equity issuance with an Offer for Sale (OFS). Specifically, it involves issuing 83.28 lakh new shares valued at Rs 71.62 crore while including an OFS of approximately 20 lakh shares worth about Rs 17.20 crore. Expected proceeds from the new equity are intended to facilitate expansion strategies and enhance financial stability within the company.

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Grey Market Premium (GMP) of Rikhav Securities

Current reports from Investorgain.com indicate that Rikhav Securities' IPO commands a notable grey market premium (GMP) totalling Rs 65 per share. Given a base price band of Rs 86 per share, this implies a potential listing price of around Rs 151—representing a substantial premium increase of approximately 76% on its debut day.

Important Dates and Lead Manager Information

- Subscription Period: From January 15 to January 17
- Anchor Investor Allocation Date: January 14
- Final Allotment Tracking Date: January 20
- Listing Date on BSE SME Platform: January 22

Smart Horizon Capital Advisors serves as the book-running lead manager overseeing this public issue.

The current strong GMP suggests favorable sentiments in the market regarding Rikhav Securities as many investors expect significant listing gains upon debuting in trade. Nonetheless, analysts recommend that prospective investors should carefully evaluate prevailing market conditions along with underlying company fundamentals before making any investment decisions.

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