Riddhi Display Equipments is all set to make its debut on the BSE SME platform on Monday. However, the grey market is indicating a cautious start, with the IPO currently trading at a zero GMP (Grey Market Premium). This suggests that the stock may list around the issue price of Rs 100 per share.
The Rs 24.68 crore public issue was entirely a fresh issue, with the company offering 24.68 lakh shares to the market. The IPO received a moderate response, closing with an overall subscription of 4.91 times. Retail investors showed the strongest interest, subscribing their portion nearly eight times, while non-institutional investors bid 1.92 times.
Riddhi Display Equipments is engaged in the manufacturing and supply of display counters, commercial kitchen equipment, and refrigeration equipment. Its products are widely used across restaurants, cafes, retail stores, supermarkets, hotels, hospitals, and institutional kitchens. The company has built a presence by offering customised solutions tailored to specific client requirements, with an emphasis on durability, cost efficiency, and after-sales support.
The company's financial performance has improved steadily in recent years. For FY25, the company reported revenue of Rs 25.09 crore, up 33% from the previous year, while profit after tax more than doubled to Rs 4.14 crore. Profitability has strengthened on the back of better cost management and a higher share of value-added customised products.
The IPO proceeds are expected to be used primarily for working capital requirements and general corporate purposes, helping the company support its growing order book and streamline operations. Investors will be closely watching how the stock trades once it lists and whether the company can sustain its recent growth momentum in a competitive manufacturing environment.
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