Rishabh Instruments IPO Basis of Allotment

	THIS IS A PUBLIC ANNOUNCEMENT FOR INFORMATION PURPOSES ONLY AND IS NOT A PROSPECTUS ANNOUNCEMENT AND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO ACQUIRE, PURCHASE OR SUBSCRIBE TO SECURITIES. NOT FOR RELEASE. PUBLICATION OR DISTRIBUTION DIRECTLY OR INDIRECTLY, OUTSIDE INDIA. THE EQUITY SHARES OF OUR COMPANY WILL GET LISTED ON MAIN BOARD PLATFORM OF THE STOCK EXCHANGES IN COMPLIANCE WITH CHAPTER II OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2018, AS AMENDED ("SEBIICDR REGULATIONS").
RISHABH INSTRUMENTS LIMITED
Our Company was incorporated as Rishabh Instruments Private Limited'', a private limited company, under the Companies Act. 1956, pursuant to a certificate of incorporation dated October 6,1982. granted by the Registrar of Companies, Maharashtra at Mumbai ( ROC"), Pursuant to the conversion of our Company into a public limited company and as approved by our Board on September 8,2022. and a special resolution passed by our Shareholders at the extra-ordinary general meeting on September 13, 2022. the name of our Company was changed to Rishabh Instruments Limited and the RoC issued a fresh certificate of incorporation on September 22, 2022. For details of change in the Registered Office, see "History and Certain Corporate Matters - Changes in the Registered Office' on page 287 of the prospectus dated September 4, 2023 ('Prospectus*).

Our Company has filed the Prospectus with the RoC. and the Equity Shares are proposed to be listed on the Main Board of the National Stock Exchange of India Limited ( NSE") and BSE Limited ('BSE'') and trading will commence on Monday, September 11, 2023.

INITIAL PUBLIC OFFERING OF 11.128,858 EQUITY SHARES OF FACE VALUE OF Rs. 10 EACH ("EQUITY SHARES") OF RISHABH INSTRUMENTS LIMITED ("OUR COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF Rs. 441 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 431 PER EQUITY SHARE) (THE "OFFER PRICE") AGGREGATING TO Rs. 4.907.83 MILLION. COMPRISING A FRESH ISSUE OF 1.700,680 EQUITY SHARES AGGREGATING TO Rs. 750.00 MILLION AND AN OFFER FOR SALE OF 9,428,178 EQUITY SHARES AGGREGATING TO Rs. 4,157.83 MILLION, COMPRISING 1,500,000 EQUITY SHARES BY ASHA NARENDRA GOLIYA' AGGREGATING TO Rs. 661.50 MILLION'. 400,000 EQUITY SHARES BY RISHABH NARENDRA GOLIYA* AGGREGATING TO Rs. 176.40 MILLION. 517,500 EQUITY SHARES BY NARENDRA RISHABH GOLIYA (HUF) AGGREGATING TO Rs. 228.22 MILLION AND 7,010,678 EQUITY SHARES BY SACEF HOLDINGS II AGGREGATING TO Rs. 3,091.71 MILLION (TOGETHER, THE "SELLING SHAREHOLDERS") (THE "OFFER"). THE OFFER CONSTITUTES 29.32% OF OUR POST-OFFER PAID-UP EQUITY SHARE CAPITAL.

'Jointly held Equity Shares with Narendra Joharimal Goliya, where Narendra Joharimal Goliya is the second holder. Through its karta, Narendra Joharimal Goliya.

Risks to Investors:

1. Concentration risk: We are dependent on our Poland Manufacturing Facility II and in Fiscals 2023, 2022 and 2021, it manufactured 62.73%, 58.25% and 59.18%, respectively, of the total products with a capacity utilisation of 73.70%, 64.81 % and 66.95%.

2. Our business is dependent on our Manufacturing Facilities. In Fiscals 2023, 2022 and 2021, our Nashik Manufacturing Facility I manufactured 17.45%, 19.67% and 14.30% and our Poland Manufacturing Facility II manufactured 62.73%, 58.25% and 59.18%, respectively, of the total products.

3. We propose to utilise 7 628.86 million of the Net Proceeds of the Offer towards Expansion of Nashik Manufacturing Facility I and we have not entered into any definitive arrangements to utilise certain portions of the Net Proceeds of the Offer.

4. Customer concentration risk; In Fiscals 2023,2022 and 2021, revenue from our top 10 customers were 71,817.91 million, 71,128.04 million and 71,030.39 million, respectively, representing 31.92%, 23.99% and 26.42%, respectively, of our total revenue from operations.

5. Product Liability: We may lose our customers and may be subject to product liability claims or claims alleging deficiency In service. One of our customers, in April 2022, issued a legal notice to our Company for alleged failure to adhere to their quality standard and technical hurdles faced in relation to the certain products supplied by our Company and have thereafter, ended their association/ relationship with us.

6. We are yet to capitalise on the development of the American National Standards Institute current transformers in the United States and/or acquire new customers in the United States pursuant to such product development.

7. Dependence on Subsidiaries: Our Subsidiaries contributed 7 3,995.57 million, 7 3,391.27 million and 7 2,793.55 million representing 67.09%, 72.12% and 71.64% of our total revenue from operations in Fiscals 2023,2022 and 2021. respectively.

8. Dependence on semiconductors availability: We source micro controller semiconductor chips as an input for our manufacturing operations. Shortages in the supply of semiconductors have had, and may continue to have, a material adverse effect on the industry and on our results of operations and financial condition. The three BRLMs associated with the Offer have handled 20 public issues in the past three years, out of which 7 issues closed below the IPO price on listing date.

10.The Offer Price, our Market Capitalization to Revenue, Market Capitalization to Earnings and Enterprise value to EBITDA of our Company and return on net worth may not be indicative of the market price of the Equity Shares on listing or thereafter.

'As on August 17,2023

11 .Details of weighted average cost of acquisition of all Equity Shares transacted in last 3 years, 18 months and one year, preceding the date of RHP:

As certified by Shah & Mantri, Chartered Accountants by the way of their certificate dated August 23, 2023.

12. Weighted average cost of acquisition compared to Floor Price and Cap Price:

* 3,606,110 CCPS were acquired by SACEF on September 17,2013 at a price of Rs. 174.10 per CCPS. Pursuant to a resolution passed by the Board of Directors of the Company dated July 24, 2023, and a resolution passed by the shareholders of the Company dated July 25, 2023, the CCPS have been converted into 7,010,278 Equity Shares oft 10 each. Hence, for the purposes of the table above, the date of conversion of the CCPS into Equity Shares has been considered as the date of acquisition and the original cost of acquiring the CCPS has been considered towards determining the acquisition price.

The Offer was made m terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (the SCRR) read with Regulation 31 of the SEBI ICDR Regulations. The Offer was made through the Book Building Process in accordance with Regulation 6( 1) of the SEBI ICDR Regulations wherein not more than 50% of the Offer was made available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs") (the "QIB Portion') Our Company and Setting Shareholders in consultation with the BRLMs allocated up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (the 'Anchor Investor Portion"), of which one-third was reserved for domestic Mutual Funds, subject to valid Bids having been received from the domestic Mutual Funds at or above the price at which allocation was made to Anchor Investors ( Anchor Investor Allocation Price'). Further, 5% of the Net QIB Portion was made available for allocation on a proportionate basis to Mutual Funds only, subject to valid Bids having been received at or above the Offer Price, and the remainder of the Net QIB Portion was made available for allocation on a proportionate basis to all QIBs. including Mutual Funds, subject to valid Bids having been received at or above the Offer Price. Further, not less than 15% of the Offer was made available for allocation to Non-institutional Investors ("Non- Institutional Category") of which one-third of the Non-institutional Category was made available for allocation to Bidders with an application size of more than 1200,000 and up to Rs. 1,000,000 and two-thirds of the Non-institutional Category was made available for allocation to Bidders with an application size of more than Rs. 1,000,000 and under subscription in either of these two sub-categories of the Non-institutional Category may be allocated to Bidders m the other sub-category of the Non-institutional Category in accordance with the SEBI ICDR Regulations, subject to valid Bids having been received at or above the Offer Price. Further, not less than 35% of the Offer was made available for allocation to Retail Individual Investors ('Retail Category'), in accordance with the SEBI ICDR Regulations, subject to valid Bids having been received from them at or above the Offer Price. All Bidders (except Anchor Investors) were required to mandatorily participate in this Offer only through the Application Supported by Blocked Amount ('ASBA') process and were required to provide details of their respective bank account (including UPI ID m case of UPI Bidders in which the Bid Amount was blocked by the Self Certified Syndicate Banks ('SCSBs') or pursuant to the UPI Mechanism, as the case may be. Anchor Investors were not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see 'Offer Procedure' on page 463 of the Prospectus.

The bidding for Anchor Investor opened and closed on Tuesday. August 29,2023. The Company received 16 applications from 9 Anchor Investors for 3,474,052 Equity Shares. The Anchor Investor Offer Price was finalized at Rs. 441 per Equity Share A total of 3,338,656 Equity Shares were allocated under the Anchor Investor Portion aggregating to Rs. 1.472,347,296. The Offer received 840.149 applications for 250.317,316 Equity Shares resulting in 22.49 times subscription as disclosed in the Prospectus.

The details of the applications received in the Offer from Retail Individual Investors, Non-institutional Investors, QIBs and Anchor Investor are as under (before technical rejections):

Final Demand

A summary of the final demand as per BSE and NSE as on the Bid/Offer Closing Date at different Bid prices is as under:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being NSE on September 06, 2023.

A. Allotment to Retail Individual Investors (after rejections) (including ASBA Applications)

The Basis of Allotment to the Retail Individual Investors, who have bid at cut-off or at the Offer Price of Rs. 441 per Equity, was finalized in consultation with NSE. This category has been subscribed to the extent of 8.15936 times The total number of Equity Shares Allotted in Retail Individual Bidders category is 3,895,101 Equity Shares to 114.561 successful applicants. The category-wise details of the Basis of Allotment are as under:

Please Note 1 (one) additional share shall be allotted to 27 Allottees from amongst 7958 successful applicants from the categories 68442 (i.e. excluding successful applicants from Category 34) in the ratio of 27:7958

B. Allotment to Non-lnstitutional Investors (more than Rs. 2 lakhs and upto 110 lakhs) (after rejections) (including ASBA Applications)

The Basis of Allotment to the Non-institutional Investors (more than Rs. 2 lakhs and upto Rs. 10 lakhs). who have bid at the Offer Price of Rs.441 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 25.80012. The total number of Equity Shares allotted in this category is 556.443 Equity Shares to 1,168 successful applicants The category-wise details of the Basis of Allotment are as under

Please Note: 6 additional Share shall be allotted to 69 Successful Allottees from the categories 510- 2,244 (i.e. excluding successful applicants from Category 476) in the ratio of 1:1

Please Note : 1 additional Share shall be allotted to 61 Allottees from amongst 69 Successful Allottees from the Categories 510 - 2244 (i.e. excluding successful applicants from Category 476) in the ratio of 61:69

C. Allotment to Non-institutional Investors (more than Rs.10 lakhs) (after rejections) (including ASBA Applications)

The Basis of Allotment to the Non-institutional Investors (more than Rs. 10 lakhs). who have bid at the Offer Price of Rs.441 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 34,19012 times. The total number of Equity Shares allotted in this category is 1,112,886 Equity Shares to 2,337 successful applicants The categories details of the Basis of Allotment are asunder: (Sample)

Please Note: 1 (One) lot of 476 shares have been alloted to All the Applicants from Serial No. 93 to 102 in the ratio of 1:5 (All these categories have been moved at the end for easy reference)

Please Note: 1 (one) additional Share shall be allotted to 474 Allottees from amongst 2.337 Successful Applicants from all the categories m the ratio of 43:212

D. Allotment to QIBs (after rejections)

Allotment to QIBs, who have bid at the Offer Price of Rs. 441 per Equity Share or above, has been done on a proportionate basis in consultation with NSE. This category has been subscribed to the extent of 72,21194 times of Net Q IB portion. As per the SE8IICDR Regulations, Mutual Funds were allotted 5% of the Equity Shares of Net QIB portion available i.e 111,289 Equity Shares andotherQlBsand unsatisfied demand of Mutual Funds were allotted the remaining available Equity Shares i .e. 2,114,483 Equity Shares on a proportionate basis. The total number of Equity shres allotted in the QIB categories is 2,225,772 Equity shares, Which were alloteed to 65 successfull application.

E. Allotment to Anchor Investors (after rejections)

The Company, the Selling Shareholders in consultation with the BRLMs, have allocated 3,338,656 Equity Shares to 9 Anchor Investors (through 13 Anchor Investor Application Forms) (including 6 domestic Mutual Funds through 13 schemes) at an Anchor Investor Offer Price at Rs. 441 per Equity Share m accordance with SEBI ICDR Regulations. This represent 60% of the QIB portion.

The Board of Directors of our Company at its meeting held on September 6.2023 has taken on record the basis of allotment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful applicants. The Allotment Advice Cum Refund Intimation and/or notices have been dispatched to the address of the investors as registered with the depositories. Further, instructions to the SCSBs have been issued for unblocking of funds and transfer to the Public Offer Account on September 6,2023 and the payments to non-syndicate brokers have been issued on September 7, 2023. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below. The Equity Shares allotted to the successful allottees have been uploaded on September 7,2023 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the Listing application with NSE and BSE on September 8, 2023. The Company has received the listing and trading approval from NSE & BSE, and trading will commence on September 11, 2023.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them m the Prospectus.

INVESTORS PLEASE NOTE

These details of the Allotment made shall be hosted on the website of Registrar to the Offer, KFin Technologies Limited at www.kfintech.com.

All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the First/ Sole applicant. Serial number of the Bid cum Application form number. Bidders DP ID. Client ID, PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

	KFin Technologies Limited
Selenium. Tower-B. Plot 31 & 32. Financial District. Nanakramguda. Serilingampally, Hyderabad, Rangareddi 500 032, Telangana. India
Tel: +91 40 6716 2222; E-mail: rishabh.ipo@kfintech.com: Website: www.kfintech.com: Investor Grievance E-mail: einward.ris@kfintech.com:
Contact Person: M Murafi Krishna: SEBI Registration No: INR000000221; CIN: U72400TG2017PLC117649

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF RISHABH INSTRUMENTS LIMITED.

RISHABH INSTRUMENTS LIMITED has filed the Prospectus with RoC on September 04,2023. The Prospectus is available on the website of SEBI at www.sebi.gov.in. websites of the Stock Exchanges i.e., BSE at www.bseindia.com and NSE at www.nseindia.com and is available on the websites of the BRLMs, i.e. DAM Capital Advisors Limited at www.damcapital.in. Mirae Asset Capital Markets (India) Private Limited at https://cm.miraeasset.co.in/ and Motilal Oswal Investment Advisors Limited at www.motilaloswalgroup.com. Any potential investors should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see the section titled 'Risk Factors' of the Prospectus. Potential investors should not rely on the DRHP filed with SEBI for making any investment decision. Specific attention of the investors is invited to 'Risk Factors' beginning on page 31 of the Prospectus.

The announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration under the U.S. Securities Act or an exemption from such registration. Any public offering of securities to be made m the United States will be made by means of a prospectus that may be obtained from the issuer or the selling security holder and that will contain detailed information about the company and management, as well as financial statements. No offering or sale of securities in the United States is contemplated.