Today, January 23, 2025, marks the much-anticipated debut of Rikhav Securities on the BSE SME platform. Following a successful initial public offering (IPO) that garnered significant interest from investors, market participants are keen to evaluate the stock’s performance and its potential for future growth.
The company’s shares were trading with a GMP of Rs 96 in the grey market, ahead of the listing.
However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
Funds raised from the IPO will be used for funding incremental working capital requirements, investing in capital expenditure for acquiring IT software, computers, and laptops, and also other general corporate purposes.
The IPO, which was a mix of fresh equity sale of 83 lakh shares and an offer for sale (OFS) of 20 lakh shares, was booked over 300 times at close.
Rikhav Securities is engaged in the business of equity broking, investing, and trading activities. Its services encompass a comprehensive range of financial activities, such as equity broking. In this, the company offers cash delivery, intra-day trading, futures, and options.
The company is also actively involved in trading across various derivative and commodity segments. Additionally, as a self-clearing member of both the Indian Clearing Corporation and NSE Clearing, it ensures the smooth settlement of trades and assistance with IPO participation, and demat account management.
As a mutual fund advisor and distributor, the company guides its clients through their investment options. Additionally, it also engages in market-making for newly listed securities and makes proprietary investments in tradable securities and derivatives.
India has a diversified financial sector undergoing rapid expansion both in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, nonbanking financial companies, co-operatives, pension funds, mutual funds, and other smaller financial entities.
Market Context And Investor Sentiment
The broader market environment plays a significant role in determining how well new listings perform. Currently, investor sentiment in the SME segment is cautiously optimistic, driven by a mix of macroeconomic factors and sector-specific dynamics. Rikhav Securities operates in the financial services sector, providing equity broking and investment services since its inception in 1995. The company has established itself as a reputable player in the industry, having aided numerous companies in their listings on SME platforms.
Given that Rikhav Securities has reported revenue growth—approximately ₹104.16 crores for FY24—investors are hopeful that this growth trajectory will continue post-listing. The company’s diverse offerings in brokerage services and its robust client base further bolster its attractiveness as an investment opportunity.