Rikhav Securities Lists at 90% Premium, Shows Strong Performance on BSE SME

resr 5paisa Research Team

Last Updated: 23rd January 2025 - 11:46 am

Listen icon

Rikhav Securities Limited, a financial services company operating since 1995, marked its entry into the public markets on Wednesday, January 22, 2025. The company, which has established itself as a comprehensive financial services provider offering brokerage, investing, and banking services with SEBI registration and multiple exchange memberships, commenced trading on BSE SME amid exceptional investor enthusiasm.

Rikhav Securities Listing Details

The company's market debut reflected strong investor confidence in its business model and growth prospects:

  • Listing Time & Price: When trading commenced at market open, Rikhav Securities shares debuted at ₹163.40 on BSE SME, delivering an impressive premium of 90% to IPO investors. This strong opening validates the market's recognition of the company's integrated financial platform and established market presence.
  • Issue Price Context: The considerable premium emerged after the company had strategically priced its IPO between ₹82 and ₹86 per share, ultimately fixing the final issue price at ₹86. This pricing approach successfully balanced institutional investor accessibility with fair value for the company's growth potential.
  • Price Evolution: By 10:47 AM IST, investor enthusiasm continued to build, pushing the stock to ₹171.57, representing an outstanding gain of 99.50% over the issue price and hitting the upper circuit, demonstrating sustained buying interest throughout the early trading session.
     


Rikhav Securities First-Day Trading Performance 

The trading activity showed robust participation and strong investor conviction:

  • Volume and Value: Within the first few hours, 25.39 lakh shares changed hands, generating a substantial turnover of ₹42.88 crore. Notably, 100% of traded shares were marked for delivery, indicating pure investment interest rather than speculative trading.
  • Demand Dynamics: The stock's trading pattern showed overwhelming buying interest with orders for 19.48 lakh shares with no sellers at current levels, reflecting strong unidirectional interest post circuit filter.


Rikhav Securities Market Sentiment and Analysis

  • Market Reaction: Strong opening followed by upper circuit
  • Subscription Rate: The Rikhav Securities IPO was massively oversubscribed by 307 times
  • Pre-listing Interest: Anchor investors demonstrated strong confidence by investing ₹25.11 crore before the public issue.

 

Rikhav Securities Growth Drivers and Challenges

Expected drivers of future performance:

  • Long-term client relationships
  • Integrated financial services platform
  • Experienced management team
  • Strong execution capabilities
  • Multiple exchange memberships
  • Diverse service offerings
  • Self-clearing membership

 

Potential challenges:

  • Highly competitive segment
  • Market volatility risks
  • Regulatory compliance needs
  • Sudden profit growth concerns
  • Technology investment requirements
     

Rikhav Securities - Utilisation of IPO Proceeds 

The ₹88.82 crore raised (₹71.62 crore fresh issue) will be used for:

  • Funding incremental working capital requirements
  • Capital expenditure for IT infrastructure
  • General corporate purposes
     

 

Rikhav Securities Financial Performance 

The company has shown strong results:

  • Revenue increased to ₹111.34 crore in FY2024 from ₹54.52 crore in FY2023
  • H1 FY2025 (ended September 2024) showed revenue of ₹96.16 crore with PAT of ₹50.37 crore
  • Net worth of ₹188.45 crore as of September 2024
  • Total borrowings of ₹25.98 crore

 

As Rikhav Securities begins its journey as a listed entity, market participants will closely monitor its ability to execute expansion plans and maintain operational metrics. The strong listing and sustained momentum suggest robust investor confidence in the company's prospects in the financial services sector, particularly given its integrated platform and established market presence, though the sharp profit growth and competitive intensity remain key areas to watch.
 

FREE Trading & Demat Account
Open FREE Demat Account with endless opportunities.
  • Flat ₹20 Brokerage
  • Next-gen Trading
  • Advance Charting
  • Actionable Ideas
+91
''
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.

+91

By proceeding, you agree to all T&C*

footer_form