Riddhi Display Equipments
- Riddhi Display Equipments is coming out with an initial public offering (IPO) of 24,68,400 equity shares in a price band Rs 95-100 per equity share.
- The issue will open on September 24, 2025 and will close on September 26, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 9.50 times of its face value on the lower side and 10.00 times on the higher side.
- Book running lead manager to the issue is Jawa Capital Services.
- Compliance Officer for the issue is Neelu Jain.
Profile of the company
The company is engaged in the business of manufacturing and supply of Display Counter, Kitchen Equipments and Refrigeration Equipments. The company offers customized display equipment for Sweet, Bakery, Namkeen, Fast-food, Chat, Dry Fruit, Snacks, Panipuri (Gol Gappa), Sweet Corn, Ice-cream and Shrikhand. The products manufacture by it are supplied to Restaurants, Food Courts, Cafes, Retail Shops, Super Markets, Ice Cream Parlours, Cake & Pastry Shops, etc. It customizes its equipment to suit specific needs of its clients; it designs tailor-made layouts that can ideally co-exist with the clients’ specific demands and other variables such as space. It provides solutions to its clients with prime focus on client requirement, equipment design, shape, pattern, space planning, internal temperature maintenance or external sturdiness of the equipment. The equipments provided by it are available in different temperature variants, i.e. refrigerated, heated and ambient display equipment. Further its kitchen equipment, the range which includes burner range, bain-marie, dish trolley, masala trolley, sink table, storage rack and work table.
The company carries its operations from its manufacturing facility located at Rajkot, Gondal, Gujarat. The company is led by an experienced board of directors, professional, and experienced management team with extensive experience manufacturing of Display counters, Refrigeration Equipments and Kitchen Equipment. Further, the company’s manufacturing facility has been duly certified in accordance with international standards of quality management systems such ISO 9001:2015 for the scope of Design, Manufacture & Supply of Display Equipment, Kitchen Equipment & Refrigeration. Further, the company has Certificate of Compliance issued by Progressive International Certifications, England, with respect to compliance with Directive 98/37/EC for its product, viz., display counter for food products (hot, cold and normal), refrigeration equipments, and kitchen equipments, and Authorization to Mark (ETL Mark) for few of its models of Refrigerators and Freezers.
Proceed is being used for:
- Capital expenditure towards interior work and for purchase of new equipment/machineries for setting up of Manufacturing cum assembly Unit at Lucknow, Uttar Pradesh.
- Capital expenditure towards purchase of new equipment/machineries/software etc. for upgradation of existing Manufacturing Unit of the company located at Gondal, Rajkot.
- Capital expenditure towards setting up of Showroom at Gondal, Rajkot.
- Funding working capital requirements.
- General Corporate Purpose.
Industry overview
The capital goods industry in India is largely dominated by public sector enterprises (PSEs), which has to a large extent, affected the development of this industry. Even though PSEs market share has dipped over the last decade, they command a large market share due to preferential purchase policies of the government. The Indian capital goods industry includes a wide range of products but lacks depth due to low demand sophistication of the local market, which in turn leads to low competitiveness of its products in the global market. On the other hand, major advanced countries generally do not produce entire range of products rather focus on select segments where they are most competitive. The growth of capital goods sector can also be attributed to the overall industrial policy and support measures provided by the government to the companies in this sector. Germany is essentially an industrial economy and its economic policies are geared towards strengthening of the industry. However, several issues in Indian capital goods industry like inverted duty structure, high export transaction costs, and lack of strong institutional mechanisms for export credit and promotion etc. hint towards lack of government focus for development of the industry.
The capital goods sector can be broadly classified into following major segments: Machine tools, Process plant machinery, Electrical machinery, Textile machinery and Earth Moving, Construction & Mining machinery. Machine tool industry is considered as mother industry for capital goods sector as it supplies machinery for the entire manufacturing sector. The industry constitutes almost 800 manufacturers, largely SMEs. Various types of machine tools currently manufactured in India include General/Special Purpose Machines, Standards CNC machines, Gear cutting, Grinding, Medium sized machines, EDM, Presses, Press Brakes, Pipe Bending, Rolling, Bending, Measuring, metrology and gauging, etc. There are over 200 units engaged in the manufacturer of process plant machinery in the country out of which 65% are SMEs. Major process plant machineries include tanks, pressure vessels, evaporators, stirrers, heat exchangers, towers & columns, crystallizer, furnace, etc. are used in energy sector, gas, oil, refinery, chemical & petrochemical, fertilizer, paper & pulp, sugar, cement, dairy industry, etc. The Indian capital goods industry has been historically dominated by PSEs in segments like heavy engineering, machine tools and boiler manufacturing while private players are predominant in manufacture of industrial machinery such as cement, sugar, textile and other machinery.
Pros and strengths
Consistent delivery of quality products: The company is committed to offering high-quality products to its customers. Through continuous improvements in its production processes, it has developed products that meet the specific requirements of its customers. Its consistent product quality enables it to offer competitive prices, achieved through effective cost optimization strategies. It endeavours to ensure customer satisfaction by offering quality products and by providing after-sales services.
Providing customized solutions with a focus on after sales service: The company provides tailormade products based on customer specifications and also has a robust after sales service. Apart from offering standardized products as per the industry requirements, it strives to customize products based on the specifications received from the customer while. The company focuses on quality as well as on giving solutions to clients based on their requirement. Its efficient after sales service plays crucial role in ensuring customer satisfaction, which has helped it to create a trustworthy brand for the company.
Well established manufacturing facilities: The manufacturing facility of the company is located at Gondal, Gujarat. Its manufacturing facilities are equipped with the requisite infrastructure enabling it to manufacture high quality products in a cost-efficient manner so as to align with the requirements of the customers. Its production operations at its manufacturing facilities are managed by a team of skilled qualified technical team with requisite technical knowledge. With the expertise of these technical engineers, it has devised efficient production processes aimed to maximize yield and minimize costs. Over the years, it has evolved its production process to diversify into a wide range of products.
Risks and concerns
Generate significant percentage of revenue from few clients: The company depends on certain customers who have contributed a substantial portion of its total revenues. It has not entered into long term agreements with majority of these customers and the success of its business is accordingly significantly dependent on maintaining good relationship with them. The loss of a significant client or clients may have a material adverse effect on its results of operations/cash flow. It cannot assure that it will be able to maintain the historical levels of business from these clients or that it will be able to substitute the revenues lost by way of termination of work with these clients. Its dependence on these clients also exposes it to risks associated with their internal management, financial condition and creditworthiness, and major events affecting these clients such as bankruptcy, change of management, mergers and acquisitions, reduction in growth or a slow-down in the business of its clients, could adversely impact its business.
Geographical constrain: The company generates revenue from domestic sales as well as from export sales, however major portion of its revenue is on account of the domestic sales made by the Company. During the period ended July 31, 2025 and the Financial Year ended March 31, 2025, its 89.93% and 84.14% revenue was generated from domestic sales, and 10.07% and 15.86% revenue was generated from export sales. Further, substantial portion of revenue from domestic sales is through its customers situated in the Gujarat, India. During the period ended July 31, 2025 and the financial year ended March 31, 2025, its revenue from Gujarat was Rs. 451.68 lakh (being 40.24% of the total revenue) and Rs 946.11 lakh (being 37.39% of total revenue) respectively. Such geographical concentration of its business in this region heightens its exposure to adverse developments related to competition, as well as economic and demographic changes in this region, which may adversely affect its business prospects, financial conditions and results of operations.
Do not have long-term agreements with most of customers: The company’s business relies heavily on maintaining strong, ongoing relationships with its customers. Currently, it does not have long-term contracts with its clients, which makes it vulnerable to changes in their buying preferences. Any shifts in these preferences could negatively impact its business. The loss or disruption of work from a key customer or several significant customers, or the inability to secure new orders regularly, could adversely affect its revenue, cash flow, and overall operations. The continuity of its customer relationships is crucial to its success. However, there is no guarantee that it will be able to maintain or expand these relationships. If it fails to sustain its existing customer base, develop new relationships, or deliver services that meet customer expectations in a timely manner, it could face a decline in customers. This could have a detrimental effect on its business, future prospects, financial performance, and overall condition.
Outlook
Riddhi Display Equipments is engaged in the business of manufacturing and supply of Display Counter, Kitchen Equipments and Refrigeration Equipments. The company carries its operations from its manufacturing facility located at Gondal, Gujarat. Its manufacturing facilities are equipped with the requisite infrastructure enabling it to manufacture high quality products in a cost-efficient manner so as to align with the requirements of the customers. The company caters to industries such as dairy, ice-cream, food processing, pharmaceuticals, hospital, hospitality and retail, among others. Over the past years, it has built a strong and diverse customer base. The company is ISO 9001:2015 certified and is led by an experienced board of directors, and a professional and experienced management team with extensive experience manufacturing of Display counters, Refrigeration Equipments and Kitchen Equipment. Further the company has obtained an ETL Certification as an ‘Authorization of Mark; in accordance with the Standards of Export in the USA and Canada. On the concern side, the company requires several statutory and regulatory permits, licenses and approvals to operate its business some of which the company has either received, applied for or is in the process of application. Besides, the company’s top suppliers may vary from period to period depending on the demand-supply mechanism and thus the supply process from these suppliers might change as it continues to seek more cost-effective suppliers in the normal course of business.
The company is coming out with a maiden IPO of 24,68,400 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 95-100 per equity share. The aggregate size of the offer is around Rs 23.45 crore to Rs 24.68 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased to Rs 2,503.30 lakh for the year ended on March 31, 2025, as compared to Rs 1,886.08 lakh for the year ended on March 31, 2024. Moreover, the profit after tax (PAT) increased to Rs 413.88 lakh in FY 2024-25 from Rs 201.60 lakh in the FY 2023-24.
Meanwhile, the company is expanding its operations by setting up a new manufacturing cum assembly unit in Lucknow, Uttar Pradesh. This will improve its service quality and operational efficiency. The proximity of the Lucknow, Uttar Pradesh unit to key markets will help it significantly reduce time and risk related to transportation to the customer, ensuring quicker and more efficient service to its UP-based clients and all the nearby areas. Also, the company propose to expand its business by opening showrooms at Rajkot at its existing facility. These showrooms will serve as a key tool for attracting new customers and building long-term loyal customers for its business.
