Febuary 2, 2023
New Delhi, India
Rashi Peripherals Unveils Rs. 600 Crore IPO Plan
The technology distribution powerhouse, Rashi Peripherals, is gearing up for a significant Initial Public Offering (IPO), aiming to raise Rs. 600 crore through the issuance of 1.93 crore equity shares. The IPO is set to open for subscription on February 7, with a price band ranging from Rs. 295 to Rs. 311 per equity share.
Strategic Investment and Pre-IPO Placement
Ahead of its IPO, Rashi Peripherals attracted notable investments in a pre-IPO placement. Madhuri Madhusudan Kela, wife of ace investor Madhu Kela, invested Rs.50 crore, while Volrado Venture Partners Fund-III-BETA injected Rs. 100 crore. In this placement, investors were allotted a total of 48.23 lakh equity shares at an issue price of Rs. 311 per share.
Business Overview and Services
Established in 1989, Rashi Peripherals has positioned itself as a national distribution partner for 52 global technology brands in India. The company’s differentiation lies in its end-to-end value-added services, including pre-sale activities, technical support, marketing services, and warranty management.
As of September 30, 2023, Rashi Peripherals reported robust financials, with a net profit of Rs. 72.02 crore and revenue of Rs. 5,473.72 crore. In the fiscal year 2022-23, the company achieved a net profit of Rs. 123.34 crore, with revenue reaching Rs. 9,468.95 crore.
Utilization of Proceeds
Out of the net proceeds from the IPO, Rashi Peripherals plans to allocate Rs. 326 crore for the prepayment or scheduled repayment of outstanding borrowings. An additional Rs. 220 crore will be directed towards funding working capital requirements, with the remaining amount earmarked for general corporate purposes.
Allotment and Listing Details
Allotment for the IPO is expected to be finalized on February 12, with refunds initiated on February 13. The shares will be credited to the demat accounts of eligible allottees on the same day. Rashi Peripherals is set to be listed on both the BSE and NSE on February 14.
Key Players and Partnerships
JM Financial and ICICI Securities are the book running lead managers for the Rashi Peripherals IPO, ensuring a smooth launch. Meanwhile, Link Intime India is appointed as the IPO registrar.
In conclusion, Rashi Peripherals’ IPO presents a lucrative investment opportunity, backed by a strong market presence, strategic investments, and impressive financial performance. Investors and tech enthusiasts alike are eagerly anticipating the company’s stock market debut on February 14.
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