Rashi Peripherals Launches IPO to Raise ₹600 Crores, Aiming for Growth in the Indian Technology Distribution Sector

The Rashi Peripherals IPO is a significant event in the Indian stock market, attracting considerable attention from investors. Here’s a comprehensive overview of the IPO details:

• IPO Size and Share Details: The Rashi Peripherals IPO aims to raise ₹600 crores through a fresh issue of 1.93 crore shares. It’s entirely a fresh issue with no offer for sale component. The company has set the price band at ₹295 to ₹311 per share, with a face value of ₹5 per share​​​​.
• Subscription Dates: The IPO opened for subscription on February 7, 2024, and closed on February 9, 2024. The allotment is expected to be finalized by February 12, 2024, with a tentative listing date on the BSE and NSE set for February 14, 2024​​​​.
• Investor Categories and Lot Size: Investors could bid for a minimum of 48 shares and in multiples thereof. The issue has been divided among various investor categories, including retail investors, qualified institutional buyers (QIBs), non-institutional investors (NIIs), and anchor investors​​.
• Company Background: Rashi Peripherals, established in 1989, has grown into a leading distributor of global technology brands in India, specializing in Information and Communication Technology (ICT) products. The company operates two business verticals: Personal Computing, Enterprise and Cloud Solutions (PES), and Lifestyle and IT Essentials (LIT). It boasts a wide distribution network across India, serving as a national distributor for 52 global technology brands​​.
• Financial Performance: For the financial year ending on March 31, 2023, the company reported a revenue of ₹9,468.95 crores, with a net profit of ₹123.34 crores. This represents a slight increase in revenue from the previous year, although there was a decrease in net profit​​.
• Market Analysis and Valuation: The IPO is noted for its significant size and the company’s strong position within the technology distribution market. The IPO’s valuation metrics, such as Return on Equity (ROE) and Return on Capital Employed (ROCE), stand at 19.33% and 14.21% respectively, reflecting the company’s profitability and efficiency in using capital​​.

This IPO offers an opportunity for investors to participate in the growth story of one of India’s leading ICT product distributors. However, like with any investment, potential investors should conduct their due diligence, considering the company’s financial health, market position, and the broader economic context.

Please note, this overview is for informational purposes only and does not constitute investment advice. Investors should consult their financial advisors before making investment decisions.