Rikhav Securities
Book Building issueSMEBSE₹88.82 Cr issue
+90.00%
Listing gain over issue price
Issue size
₹88.82 Cr
1 lot at cut-off
₹1,37,600
Lot size
1,600shares
Open
15 Jan 2025
Close
17 Jan 2025
Allotment
20 Jan 2025
Listing
22 Jan 2025
Listing performance
Issue price
₹86
Listed at
₹163.40
Listing-day close
₹171.55
Latest price
₹52.66
Close on 23 Oct 2026
Listing gain
+90.00%
Return since issue
-38.77%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Jan 2025 – 17 Jan 2025
- Listing date
- 22 Jan 2025
- Face value
- ₹1 per share
- Issue price
- ₹86 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹88.82 Cr
- Market cap at offer price
- ₹329 Cr
- Promoter holding
- 90.55% → 65.63% pre-issue → post-issue
- ISIN
- INE0CFH01028
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Smart Horizon Capital Advisors Pvt.Ltd.
- Registered office
- Office No.922-A, 9th Floor, P.J.Towers, Dalal Street, Fort, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 29,20,000 | — | — |
| Market maker | 5,24,800 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹86
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,37,600 |
| S-HNI (min) | 2 | 3,200 | ₹2,75,200 |
| S-HNI (max) | 7 | 11,200 | ₹9,63,200 |
| B-HNI (min) | 8 | 12,800 | ₹11,00,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
29,20,000
Anchor portion
₹25.11 Cr
at ₹86 per share
Valuation and performance
Valuation at offer price
₹86 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 14.23 | 26.31 |
| P/E (×) | 6.04 | 3.27 |
| Price to book (×) | 1.87 | — |
| Market cap | — | ₹329 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 30.89%
- ROCE
- 29.48%
- Debt / equity
- 0.35
- PAT margin
- 40.94%
- NAV per share
- ₹46.08
- Price to book
- 1.87
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Rikhav Securities
Rikhav Securities Limited (RSL), incorporated in 1995 and formerly known as Brijmohan Sagarmal Finance Limited, is a SEBI-registered securities intermediary engaged in equity broking, investing, and trading activities. The company offers comprehensive financial services including cash delivery trading, intra-day trading, futures and options trading, derivative and commodity segment trading, and serves as a Self-Clearing Member of both Indian Clearing Corporation Limited (ICCL) and NSE Clearing Limited (NCL). RSL provides mutual fund advisory and distribution services, assists with IPO participation and demat account management, engages in market making for newly listed securities, and makes proprietary investments in tradable securities and derivatives. The company generates revenue primarily from trading income, F&O and currency trading, brokerage and commission fees, market making fees, and demat operations.
Company Analysis
from RHPRikhav Securities Limited is an equity broking, trading, and investment firm spanning cash derivatives, commodities, and market-making segments.
Rikhav Securities Limited (RSL), incorporated in 1995 and formerly known as Brijmohan Sagarmal Finance Limited, is a SEBI-registered securities intermediary engaged in equity broking, investing, and trading activities. The company offers comprehensive financial services including cash delivery trading, intra-day trading, futures and options trading, derivative and commodity segment trading, and serves as a Self-Clearing Member of both Indian Clearing Corporation Limited (ICCL) and NSE Clearing Limited (NCL). RSL provides mutual fund advisory and distribution services, assists with IPO participation and demat account management, engages in market making for newly listed securities, and makes proprietary investments in tradable securities and derivatives. The company generates revenue primarily from trading income, F&O and currency trading, brokerage and commission fees, market making fees, and demat operations.
equity brokingderivatives tradingcommodity tradingmutual fund distributionfinancial services
Objects of the Issue
- Funding working capital requirements of our company ₹4,600.00 Lakhs p.29
- Funding of capital expenditure requirements of our company towards purchase of IT Software, Computers & Laptops ₹412.81 Lakhs p.29
- General corporate purposes p.29
- Funding our incremental working capital requirements ₹4,600.00 Lakhs p.102
- Funding of capital expenditure requirements of our Company towards purchase of IT Software, Computers and Laptops ₹412.81 Lakhs p.101
- General corporate purposes p.101
- Funding working capital requirements for margin trading, market-making services expansion, and bank guarantees/collateral maintenance p.104
- Funding capital expenditure requirements for purchase of IT Software, Computers and Laptops ₹412.81 Lakhs p.106
- General corporate purposes Up to 25% of Gross Proceeds (subject to regulatory limits) p.109
- Augment fund based capacities for stock broking and allied activities, including market making services and Margin Trading Facility (MTF) p.156
- Hiring and retaining talented employees p.157
- Embrace Technological Advancements p.157
- Focus on risk management p.157
- Entering into new geographies p.157
- Grow fee-based revenues p.157
- General corporate purposes p.323
Issue Structure
- Total Issue
- Up to 1,03,28,000 Equity Shares aggregating up to ₹[●] Lakhs
- Fresh Issue
- Up to 83,28,000 Equity Shares aggregating up to ₹[●] Lakhs
- Offer for Sale
- Up to 20,00,000 Equity Shares aggregating up to ₹[●] Lakhs
- Price Band
- [●] per Equity Share (Floor Price and Cap Price to be determined)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹5/- each
Business Model
RSL generates revenue through: (1) equity and derivative trading commissions and spreads; (2) F&O (futures and options) and currency trading income; (3) brokerage and commission fees from clients; (4) market-making annual fees; (5) demat operations fees; and (6) proprietary trading and investments in securities and derivatives. As of September 30, 2024, Trading Income accounts for 69.48% of total income, F&O and Currency Trading Income accounts for 25.18%, Brokerage & Commission Fees account for 4.17%, Market Making Annual Fees for 0.48%, Demat Operation for 0.35%, and others for 0.35%.
Business Segments
Offers cash delivery, intra-day trading, and trading across various derivative and commodity segments; operates as Self-Clearing Member of ICCL and NCL
Engages in futures, options, and currency trading activities
Provides commission-based services for securities transactions and client relationship management
Guides clients through investment options and distributes mutual fund products
Engages in market making for newly listed securities and receives annual fees for this service
Assists clients with demat account management and IPO participation
Provides equity trading services through BSE and NSE, with clearing memberships allowing clients to trade in Indian stock markets. The company earns brokerage commissions on transactions.
Provides margin trading facilities where clients contribute approximately 30% of trade value as margin and the company finances the remaining 70%. The company generates interest income from margins extended and brokerage revenue from delivery transactions.
Provides market making services on the BSE SME platform, contributing to overall business enhancement through liquidity provision.
The company engages in arbitrage trading and other trading activities to generate additional revenue streams.
Equity trading (cash and derivatives), currency derivatives, and clearing services across NSE, BSE, and MCX. Provides trading facilities via digital platforms including the Rikhav Plus App.
Operates as a depository participant with CDSL, offering demat account opening, maintenance, and dematerialization/rematerialization services. Serves 18,400+ active customers.
Provides liquidity to SME-listed companies via two-way quotes; has executed market-making mandates for 66 companies. Registered as market maker with BSE (2012) and NSE (2016).
Distributes a range of mutual funds (equity, debt, hybrid, tax-saving ELSS schemes) to high-net-worth individuals and corporates through an extensive network.
Trading in equity shares across NSE and BSE exchanges
Trading in futures and options contracts across NSE and BSE F&O segments
Commodity trading through MCX membership
Currency derivatives trading through NSE membership
Depository participant services through CDSL providing demat account services
Market making services for SME companies and fixed income securities
Provides equity broking services including cash delivery, intra-day trading, futures and options trading across BSE and NSE. The company collects brokerage fees from clients through authorized persons and retains a portion for infrastructure and back-end support costs.
Provides market-making services for SME-listed companies, offering two-way quotes during trading hours to ensure liquidity. The company was registered as Market Maker with BSE in 2012 and NSE in 2016, having executed market-making mandates for 66 companies.
Engages in proprietary investments in tradable securities and derivatives with sufficient liquidity. Investment strategies focus on earning arbitrage gains based on analysis and investment rationale.
Assists clients in participating in Initial Public Offerings (IPOs) and provides depository services including opening and maintenance of demat accounts through CDSL.
Operates as a mutual fund advisor and distributor, guiding clients through mutual fund investments.
Provides stock brokerage services, trading services, and market-making across multiple stock exchanges including BSE, NSE, and MCX-SX for equities and derivatives.
Operates as a depository participant for CDSL, providing dematerialization services and securities settlement.
Provides market-making services on the BSE SME platform and other exchanges to ensure liquidity and continuous trading.
Operates through subsidiary RSL IFSC Private Limited as a stock broker in the GIFT Special Economic Zone in Gujarat for international financial services.
SWOT Analysis
Strengths
- • Working capital intensive business with strong deposit position(p.102)
- • Growth trajectory in revenue and profitability(p.66)
- • Established banking relationships and credit facilities(p.102)
- • Dematerialized equity shares and modern corporate structure(p.100)
- • Integrated financial services platform with multiple business verticals(p.151)
- • Long-term client relationships and customer service strength(p.153)
- • Experienced management team with deep industry expertise(p.152)
- • Strong profitability and returns on equity(p.152)
- • Established market maker presence for SME segment(p.151)
- • Digital transformation and technology platform advancement(p.152)
- • Integrated multi-segment financial services platform(p.156)
- • Experienced management team with proven execution capabilities(p.156)
- • Robust risk management system integrated with electronic platform(p.159)
- • Customized brokerage plans and technical research support(p.160)
- • Long operational history with significant memberships and registrations(p.173)
- • Established depository participant and stock broker registrations with SEBI across multiple exchanges(p.301)
- • Diversified trading memberships across major stock exchanges(p.301)
- • Positive operating profit (EBITDA) for at least 2 of 3 latest financial years(p.312)
- • Strong net worth exceeding ₹ 1 crore for the preceding financial years(p.312)
- • Conservative leverage ratio well below regulatory limits(p.313)
- • Long-standing operational history since 1995(p.312)
Weaknesses
- • Significant unsecured debt that can be recalled at any time(p.50)
- • High contingent liabilities relative to total assets(p.51)
- • Working capital gap increasing significantly(p.50)
- • Dependence on restrictive debt covenants and lender consents(p.52)
- • Directors' personal guarantees on secured debt(p.53)
- • High reliance on market making investments requiring continuous capital deployment(p.105)
- • Increasing working capital requirements due to margin lending and trade receivables growth(p.105)
- • Moderate debt-to-equity ratio indicating leverage used in operations(p.152)
- • Exposure to regulatory changes in margin requirements and bank guarantee rules(p.105)
- • Penalties and regulatory violations(p.176)
- • Subsidiary showing losses(p.179)
- • Concentration in location - primarily Mumbai and Gujarat based(p.157)
- • Dependence on proprietary investment returns and market conditions(p.277)
- • Concentration of ownership among Promoters(p.277)
- • Outstanding tax demands and pending litigation from revenue authorities(p.288)
- • Unfunded gratuity obligation and employee benefit liabilities(p.274)
- • High leverage and significant short-term borrowings(p.263)
- • Multiple regulatory penalties and enforcement actions against the company(p.294)
- • Compliance violations and position violations in restricted securities(p.294)
- • Prior debarment from acting as syndicate member due to IPO misconduct(p.294)
- • Tax liabilities and TDS defaults outstanding(p.292)
- • Group company involvement in fraudulent trading practices(p.292)
- • Related party group company (Rikhav Commodity Brokers) suspension of certificate of registration(p.296)
Opportunities
- • Expansion into Margin Trading Facility (MTF) business(p.102)
- • Growth in capital market trading activities(p.101)
- • Leverage existing banking relationships for enhanced services(p.102)
- • Public listing to enhance brand visibility and market access(p.57)
- • Expansion of market-making services to additional listed companies(p.105)
- • Growth in margin trading and cash margin requirement coverage(p.104)
- • India's rapidly growing capital markets and trading volumes(p.148)
- • Growing fintech adoption and digital payment penetration in India(p.144)
- • Strong mutual fund distribution potential and wealth management market growth(p.145)
- • Retail investor expansion in Indian secondary markets(p.147)
- • Expansion into Margin Trading Facility (MTF) business(p.156)
- • Market making strategy combining fee-based revenue with strategic investments(p.156)
- • Geographic expansion into new regions(p.157)
- • Diversification of revenue through fee-based services and mutual funds distribution(p.157)
- • Expansion of HNI and institutional broking services(p.157)
- • Technology investments for operational efficiency and scalability(p.157)
- • Expansion of market-making activities for SME segment companies(p.266)
- • Growth in derivatives and commodity trading segments(p.266)
- • Expansion of digital and mobile broking platforms(p.267)
- • Increasing retail investor participation in capital markets(p.280)
- • Expansion of mutual fund distribution business(p.266)
- • Potential for migration to main board of BSE upon meeting eligibility criteria(p.330)
- • Expansion of market-making services across growing SME segment(p.303)
- • Development of international operations through IFSC subsidiary in GIFT SEZ(p.305)
- • Leverage of algorithmic and advanced trading platform capabilities(p.304)
- • Multiple distribution channels and regulatory registrations supporting business expansion(p.303)
Threats
- • Regulatory changes and licensing compliance risks(p.49)
- • Interest rate risk affecting profitability(p.52)
- • Competition and industry cyclicality in capital markets(p.57)
- • Indian economic and political instability affecting market conditions(p.60)
- • Dependence on external financing and credit availability(p.60)
- • Data privacy compliance costs and regulatory uncertainties(p.51)
- • Regulatory changes restricting bank guarantee creation from client funds(p.105)
- • Competition from larger established broking houses and fintech platforms(p.114)
- • Market volatility and trading volume fluctuations affecting brokerage income(p.104)
- • Global economic uncertainties and geopolitical risks affecting Indian markets(p.146)
- • Credit risk exposure from margin lending and client receivables(p.104)
- • Intense competition in broking industry(p.160)
- • Heavy regulatory requirements and compliance burden(p.160)
- • Reliance on technology and cybersecurity risks(p.160)
- • Dependence on market volatility and trading volumes(p.159)
- • Volatility in stock market conditions and equity prices(p.279)
- • Regulatory changes in securities market and broking sector(p.278)
- • Economic recession and slowdown in financial markets(p.278)
- • Intense competition in the broking and capital markets industry(p.285)
- • Interest rate and currency fluctuation risks(p.278)
- • Ongoing regulatory scrutiny and enforcement actions within securities industry(p.30)
- • Risk of reputational damage from prior misconduct of promoter-connected entities(p.296)
- • Continuing investigations and proceedings against promoter group members(p.297)
- • Regulatory uncertainty regarding trading compliance and market surveillance(p.297)
- • Dependence on regulatory permissions for international IFSC operations subject to renewal(p.305)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Hitesh Himatlal Lakhani | Promoter | 7.64% | 5.98% |
| Mr. Rajendra N Shah | Promoter | 4.79% | 3.75% |
| Ms. Bharti Hitesh Lakhani | Promoter | 4.08% | 3.20% |
| Ms. Vaishali R Shah | Promoter | 6.60% | 5.17% |
| Mr. Deep Hitesh Lakhani | Promoter | 6.44% | 5.04% |
| Mr. Monil Rajendra Shah | Promoter | — | — |
| M/s. Hitesh Himatlal Lakhani HUF | Promoter Group | 4.39% | 3.43% |
| Mr. Hitesh Himatlal Lakhani | Promoter | 7.64% | 5.98% |
| Mr. Rajendra N Shah | Promoter | 4.79% | 3.75% |
| Ms. Bharti Hitesh Lakhani | Promoter | 4.08% | 3.20% |
| Ms. Vaishali R Shah | Promoter | 6.60% | 5.17% |
| Mr. Deep Hitesh Lakhani | Promoter | 6.44% | 5.04% |
| M/s. Hitesh Himatlal Lakhani HUF | Promoter | 4.39% | 3.43% |
| Mr. Vikram Navalchand Shah | Promoter Group | 6.70% | 5.24% |
| Hitesh Himatlal Lakhani | Promoter/Founder | — | — |
| Rajendra N Shah | Promoter/Founder | — | — |
| Monil Rajendra Shah | Promoter | — | — |
| Mr. Hitesh Himatlal Lakhani | Promoter | 7.64% | — |
| Mr. Rajendra N Shah | Promoter | 4.79% | — |
| Ms. Bharti Hitesh Lakhani | Promoter | 4.08% | — |
| Ms. Vaishali R Shah | Promoter | 6.60% | — |
| Mr. Deep Hitesh Lakhani | Promoter | 6.44% | — |
| Mr. Monil Rajendra Shah | Promoter | — | — |
| M/s. Hitesh Himatlal Lakhani HUF | Promoter Group | 4.39% | — |
| Hitesh Himmatial Lakhani | Promoter | 7.64% | — |
| Vaishali Rajendra Shah | Promoter | 6.60% | — |
| Deep Hitesh Lakhani | Promoter | 6.44% | — |
| Mahesh Rajendra Shah | Promoter | 6.60% | — |
| Bharti Hitesh Lakhani | Promoter | 4.08% | — |
| Hitesh Himmatial Lakhani HUF | Promoter Group | 4.05% | — |
| Hitesh Himatlal Lakhani | Promoter | — | — |
| Monil Rajendra Shah | Promoter | — | — |
| Dharmesh Navalchand Shah | Promoter | — | — |
| Rajendra Navalchand Shah | Promoter Group Member | — | — |
Leadership
Mr. Hitesh Himatlal Lakhani · Chairman & Managing Director
Mr. Rajendra N Shah · Whole-time Director
Mr. Monil Rajendra Shah · Executive Director
Mr. Hemant Hasmukh Shah · Chief Financial Officer
Ms. Sona Jain · Company Secretary & Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Offer documents
Rikhav Securities IPO FAQs
What is the lot size of Rikhav Securities IPO?
The minimum lot size of Rikhav Securities IPO is 1,600 shares. One lot costs ₹1,37,600 at the cut-off price.
When does Rikhav Securities IPO open and close?
Rikhav Securities IPO opened for subscription on 15 Jan 2025 and closed on 17 Jan 2025.
What is the listing date of Rikhav Securities IPO?
Rikhav Securities IPO listed on 22 Jan 2025.