Riddhi Display Equipments IPO: All you need to know before subscription

Riddhi Display Equipments will launch its Rs 25 crore IPO for subscription on Wednesday. The book-built issue will close on September 26, with shares expected to list on BSE SME on October 1. The company has fixed a price band of Rs 95–100 per share.

At the upper end, the IPO will give Riddhi Display Equipments a market cap of about Rs 86.4 crore. In the grey market, shares are quoting at a premium of Rs 4, suggesting muted listing gains of around 4%.

Issue structure

The IPO comprises a fresh issue of 24.68 lakh shares, aggregating Rs 24.68 crore. Of this, 1.23 lakh shares have been reserved for the market maker, Aftertrade Broking. The net issue of 23.44 lakh shares is split among QIBs (up to 50%), retail investors (at least 35%) and non-institutional investors (at least 15%).

Investors can bid for a minimum of 2,400 shares, requiring an outlay of Rs 2.4 lakh. For HNIs, the minimum investment works out to Rs 3.6 lakh for three lots.

Company profile

Riddhi Display Equipments is engaged in manufacturing and supplying display counters, commercial kitchen equipment, and refrigeration equipment. Its products cater to clients across restaurants, cafes, supermarkets, hotels, hospitals, and retail outlets.

The company operates a manufacturing facility in Gondal, Gujarat, equipped with modern machinery and a skilled technical team. It emphasizes cost efficiency, quality, and customized solutions backed by after-sales support.

Financials

The company has reported consistent growth over the last three years. Revenue rose 33% in FY25 to Rs 25.1 crore, while profit after tax more than doubled to Rs 4.1 crore from Rs 2 crore in FY24. EBITDA also improved to Rs 6.9 crore from Rs 3.8 crore.

Use of proceeds

The IPO proceeds will be used to set up a new manufacturing cum assembly unit in Lucknow, upgrade its Gondal plant, establish a showroom in Rajkot, fund working capital needs, and meet general corporate expenses.

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