Rikhav Securities Limited is a financial services company in India that offers brokerage, investing, and banking services. Rikhav Securities IPO is a book built issue of Rs 88.82 crores and is a combination of fresh issue aggregating to Rs 71.62 crores and offer for sale aggregating to Rs 17.20 crores.
IPO opens
January 15, 2025
IPO Closes
January 17, 202
IPO Size (Rs.)
₹88.82 Cr
Breakup
Fresh issue ₹ 71.62 Cr + OFS ₹17.20 Cr
Face Value:
₹ 5
IPO Price in Rs :
₹82 to ₹86 per share
Minimum Lot
1,600 Shares
Listing At
NSE SME
QIB Quota
~50%
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Smart Horizon Capital Advisors Private Limited
Registrar
Link Intime India
Market maker
Shreni Shares Limited
About: Rikhav Securities IPO
Rikhav Securities Limited (RSL) was originally incorporated as “Brijmohan Sagarmal Finance Limited” on March 21, 1995. The company’s name was changed to “Rikhav Securities Limited” on February 13, 2006.
Rikhav Securities Limited is involved in equity broking, investing, and trading activities. .
The company offers services such as cash delivery, intra-day trading, futures, and options.
Rikhav is also engaged in trading across various derivative and commodity segments.
They are a Self-Clearing Member of both the Indian Clearing Corporation Limited (ICCL) and NSE Clearing Limited..
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The company provides Private Client Broking services, tailored for active equity traders and offers depository services through CDSL.
Rikhav distributes a wide range of mutual funds including equity, debt, hybrid funds, and tax-saving ELSS schemes.
The company also engages in market-making activities for companies listing on the stock exchanges.
Financials: Rikhav Securities IPO
Metric / Rs Lacs
6mFY25
2024
2023
2022
Revenue from Operations
9,285.81
10,416.17
4,946.76
3,549.91
EBITDA
6,271.77
4,824.87
2,337.52
1,832.45
EBITDA Margin (%)
67.54%
46.32%
47.25%
51.62%
PAT
5,037.32
4,264.63
1,957.17
1,762.47
PAT Margin (%)
54.25%
40.94%
39.56%
49.65%
Return on equity (%)
30.85%
36.60%
22.91%
26.29%
Debt-Equity Ratio (times)
0.14
0.35
0.1
0.2
Net fixed asset turnover ratioo x
43.01
51.01
23.72
40.01
Post issue Share Capital
1915
FV
5
IPO price
86
EPS Fy24
11.13
PE
7.72
EPS Fy25 (annualized)
26.30
PE (annualized)
3.27
Market cap in cr.
32938
Market cap / Sales
3.16
Anchors: Rikhav Securities IPO
Rikhav Securities IPO: Salient Points
Use of Net proceeds ( Rs. Lacs)
Sr. No
Particulars
Amount
1.
Funding working capital requirements of company
4,600.00
2.
Funding of capital expenditure requirements of our company towards purchase of IT Software, Computers & Laptops
412.81
3.
General corporate purposes
[●]
FY24 Revenue Bifurcation:
Particulars
Amount (₹ in Lakhs)
% of Total Revenue
Brokerage & Commission Fees
781.21
7.51
Market Making Annual Fees
71.75
0.69
Demat Operation
31.79
0.31
Revenue from Trading Income
5,194.87
49.93
F&O and Currency Trading Income
4,279.39
41.13
The revenue increased from ₹4,946.76 lakhs in March 2023 to ₹10,416.17 lakhs in March 2024 and for 6 month period ending September 2024 stood at INR 9,285.81 lakh whoing a healrhy increase.
PAT also significantly increased from ₹4,264.63 lakh in March 2023 to ₹5,037.32 lakh (6m period) ending September 2024
Peers:
Companies
Revenue (cr.)
EBITDA Margin
PAT Margin
P/E
Mcap/sales
D/E Ratio
Rikhav Securities (FY 2024)
104
46.3%
40.94%
7.72(3.27)
3.16
0.14
Alacrity Securities(TTM)
342
2.95 %
2.43 %
52.9
1.28
0.05
Angel One (TTM)
5,540
39.1 %
24.1 %
16.9
4.06
0.59
Share India (TTM)
1,706
40.4 %
26.8 %
13
3.48
0.15
Pune E – Stock Broking (TTM)
80
13.7%
25.1 %
14.5
3.5
0.24
PE FY25 (annualized) 10.16x ; PE Fy24: 14.29x
The company engages in market-making activities for companies listing on the stock exchanges.
As of the date of the Red Herring Prospectus, they had executed market-making mandates for 66 companies listed on SME platforms. Tis may have earned them good returns.
I intend to apply in Rikhav Securities IPO. Decent price compared to peers. Revenues and profits have seen good uptrend. Is uniquely positioned as a Market maker in many SME IPOs.
GMP as reported on social media is Ra. 70 (81%)at this juncture.
Lead Manager has no previous record.
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
