Introduction: Glimpse into the Display Equipment Sector
The Indian market for display, kitchen, and refrigeration equipment is witnessing steady growth, driven by expansions in the retail, hospitality, and service sectors. Riddhi Display Equipments Limited (RDEL), established in 2006, is a key player in this space, offering innovative manufacturing and supply solutions. As the company heads to the SME segment of the BSE with its Initial Public Offering (IPO), discerning investors are keen to understand its potential. This analysis breaks down every critical aspect of the RDEL IPO to help you make an informed decision.
Riddhi Display Equipments IPO Essentials: The Snapshot
This is a book-building issue aiming to raise capital primarily for expansion and working capital. It's important to note that this is a Fresh Issue, meaning the entire proceeds will go to the company.
Key IPO Dates and Listing Details
Understanding the timeline is crucial for timely application submissions.
| Milestone | Tentative Date |
|---|---|
| IPO Subscription Opens | Monday, December 8, 2025 |
| IPO Subscription Closes | Wednesday, December 10, 2025 |
| Finalization of Allotment | Thursday, December 11, 2025 |
| Initiation of Refunds / Credit to Demat | Friday, December 12, 2025 |
| Tentative Listing Date on BSE SME | Monday, December 15, 2025 |
Progress Check: The IPO application via UPI mandates must be confirmed by 5 PM on the closing date, December 10, 2025.
Financial Structure and Pricing Details
The total issue size aggregates to approximately ₹24.68 Crores, comprising 25.00 Lakh shares (fresh issue). The face value is ₹10 per share.
Investment Parameters
| Parameter | Value |
|---|---|
| Issue Price Band | ₹95.00 to ₹100.00 per share |
| Minimum Lot Size (Retail) | 1,200 Shares (2 Lots) |
| Minimum Investment (Retail) | ₹2,40,000.00 (at upper price band) |
| Listing Exchange | BSE SME |
Share Allocation Structure and Investor Buckets
The distribution of shares is weighted heavily towards Non-Institutional Investors (NII) and Retail Individual Investors (RII).
IPO Reservation Breakdown
| Investor Category | Shares Offered (Quantity) | Percentage (%) |
|---|---|---|
| Retail Individual Investors (RII) | 11,64,000 | 47.16% |
| Non-Institutional Investors (NII/HNI) | 11,55,600 | 46.82% |
| Qualified Institutional Buyers (QIB) | 25,200 | 1.02% |
| Market Maker Reservation | 1,23,600 | 5.01% |
Note on Retail Investment: Based on the lot size, the minimum investment for an Individual (Retail) investor is based on 2 lots (2,400 shares).
Company Profile and Business Strength
Riddhi Display Equipments Ltd. specializes in manufacturing and supplying customized display solutions, critical for modern retail and food service environments. Their product line spans Display Counters, Commercial Kitchen Equipment, and Refrigeration Equipment, catering to a diverse clientele.
Competitive Advantages
- Possession of well-established, optimized manufacturing facilities in Gondal, Gujarat.
- Strong focus on providing tailor-made solutions coupled with dedicated after-sales service.
- A diverse client base spanning multiple sectors including retail, advertising, and exhibitions.
- An experienced promoter group supported by a qualified technical engineering team.
Promoter Structure and Equity Change
The company is primarily promoted by Mr. Shailehsbhai Ratibhai Pipaliya, Mrs. Hansaben Shailehsbhai Pipaliya, and Mr. Jay Shailehskumar Pipaliya.
| Holding Metric | Percentage (%) |
|---|---|
| Promoter Holding (Pre-Issue) | 99.99% |
| Promoter Holding (Post-Issue) | 71.43% |
Financial Performance Indicators (KPIs) Analysis
A review of the recent financial data shows significant upward momentum, particularly in profitability.
Year-on-Year Financial Growth Highlights (FY24 vs FY25)
- Revenue showed a healthy increase of 33% between the fiscal year ending March 2024 and March 2025.
- Profit After Tax (PAT) experienced a substantial surge of 105% during the same period, indicative of improved operational efficiency or better product margins.
Key Ratios (as of March 31, 2025)
| Key Performance Metric | Value |
|---|---|
| Return on Equity (ROE) | 62.87% |
| Return on Capital Employed (ROCE) | 58.40% |
| PAT Margin | 16.53% |
| Debt/Equity Ratio | 1.04 |
Deployment of IPO Proceeds: Strategic Intent
The capital raised is earmarked for tangible growth and operational scaling.
Primary Objectives for Fund Utilization (in Millions)
| Objective | Expected Amount (₹ Million) |
|---|---|
| Capital Expenditure (New Lucknow Unit) | 49.65 |
| Capital Expenditure (Gondal Unit Upgradation) | 37.91 |
| Setting up Showroom (Gondal) | 14.27 |
| Funding Working Capital Requirements | 97.37 |
| General Corporate Purposes | (Implied Balance) |
Due Diligence Check: Intermediaries and Contacts
The successful processing of the IPO relies on competent management by key financial entities.
Key IPO Intermediaries
- Book Running Lead Manager (BRLM): Jawa Capital Services Pvt.Ltd.
- Registrar: Maashitla Securities Pvt.Ltd. (Contact: +91-11-45121795-96, investor.ipo@maashitla.com)
- Market Maker: Aftertrade Broking Pvt.Ltd. (A market maker plays a role in ensuring liquidity post-listing).
Company Contact Information
For official correspondence regarding Riddhi Display Equipments Ltd.:
- Address: Plot No.1, Survey No.2/1 P4/P2, National Highway-27 Gondal Highway, Village Bhojpara, Gondal, Rajkot, Gujarat, 360311
- Email: info@riddhidisplay.com
Investment Perspective: SWOT Analysis
Evaluating the business potential through a structural lens can highlight inherent strengths and potential hurdles.
Strengths (Internal Positive Factors)
- Financial Momentum: Strong YoY growth in PAT (105% increase) suggests effective cost control and margin improvement recently.
- Product Specialization: Deep focus on customized display and kitchen solutions provides a competitive edge over generic suppliers.
- High Promoter Holding Pre-IPO: Indicates strong conviction from the founders, although dilution is significant post-listing.
Weaknesses (Internal Negative Factors)
- SME Listing: As an SME IPO, liquidity might be lower compared to mainboard stocks initially.
- High Valuation Observation: Current earnings review suggests the issue might be priced fully, meaning expectations for immediate listing gains might be tempered.
- High Debt: The Debt/Equity ratio of 1.04 indicates a reliance on debt financing relative to equity, which requires monitoring.
Opportunities (External Positive Factors)
- Industry Tailwinds: Continued expansion in organized retail, QSRs (Quick Service Restaurants), and hospitality sectors drives demand for RDEL's core products.
- Geographic Expansion: Funds allocated for a new unit in Lucknow signal strategic efforts to penetrate new regional markets.
Threats (External Negative Factors)
- Input Cost Volatility: Reliance on manufactured goods exposes the company to fluctuations in steel and metal input costs.
- Competition: The display and equipment manufacturing sector involves competition from both organized and unorganized players.
How to Participate: Brokerage Insights
Applying for the IPO is streamlined, largely through UPI mandates now integrated across leading brokerage platforms.
Applying via Popular Discount Brokers
Most retail investors use discount brokers for efficient online applications. For instance, applying via platforms like Zerodha involves logging into their console, selecting the IPO, and confirming the mandate via your UPI app.
- Discount brokers typically charge a flat rate, such as ₹20 per trade (applicable for F&O/Intraday), while some full-service brokers may charge marginally lower rates per trade or offer different packages.
- For retail applications, ensure you bid at the cut-off price or below the upper price band to maximize allotment chances within your category.