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Rashi Peripherals IPO Details: Launch Date, Share Price, Size, GMP & Review

Rashi-Peripherals-IPO-Details-Launch-Date,-Share-Price,-Size,-GMP-&-Review

Rashi Peripherals Limited – About the Company

Rashi Peripherals Limited is the leading value-added national distribution partner for global technology brands in India for information and communications technology ("ICT") products. It is offering end-to-end value-added services from pre-sale activities to solutions design, technical support, credit solutions, marketing services, and warranty management services to its customers.

At the start of the business it was manufacturing only peripherals but later also involved in the distribution of ICT (Information and Communication Technology) Products. The company is operating into two business verticals - Personal Computing, Enterprise and Cloud Solutions (“PES”) in which it distributes personal computing devices like Laptops, Desktops, Routers, and Switches, and offers enterprise solutions, embedded designs/ products and cloud computing.

Under the second business vehicle - Lifestyle and IT Essentials ("LIT"), it is distributing products such as (i) components that include graphic cards, central processing units (“CPUs”) and motherboards; (ii) storage and memory devices; (iii) lifestyle peripherals and accessories that include keyboard, mice, web cameras, monitors, wearables, casting devices, fitness trackers and gaming accessories; (iv) power equipment such as UPS and investors; and (v) networking and mobility devices.

The company has the pan-India distribution of 50 branches that operate for sales and as service centres and 62 warehouses and through its branches and warehouses, it is capable of covering 730 locations in India. The company is a national distribution partner for 48 global technology brands such as Dell International, HP India, Lenovo India, Logitech Asia Pacific, Intel Americas, ASUS, Schneider Electric, LG Electronics, Western Digital, Eaton Power, Toshiba Electronic, NVIDIA Corporation, etc.

Rashi Peripherals IPO Objectives

As per the DRHP and RHP, the entire issue is a fresh issue of equity shares, which means the entire amount raised from the IPO will go to the company. Hence, one of the major objects for which the net proceeds from the offer is paying the debts and meeting the working capital needs.

As the total issue size is Rs 600 crore, and out of this Rs 326 crore will be utilized for the prepayment or scheduled re-payment of all or a portion of certain outstanding borrowings availed by our company. Rs 220 crore will be used for funding the working capital requirements of our Company and the remaining net proceeds shall be used for general corporate purposes.

Rashi Peripherals IPO Details:

IPO Open Date 07-Feb-24
IPO Close Date 09-Feb-24
Basis of Allotment 12-Feb-24
Listing Date 14-Feb-24
Face Value Rs 5 per share
Price Rs 295 to Rs 311 per share
Lot Size 48 Shares
Total Issue Size [.] shares
(aggregating up to Rs 600.00 crore)
Fresh Issue [.] Shares, aggregating up to Rs 600.00 crore
Offer For Sale No Offer for Sale
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not less than 75% of the Net Issue
Retail Shares Offered Not more than 10% of the Net Issue
NII (HNI) Shares Offered Not more than 15% of the Net Issue

 

Rashi Peripherals IPO Issue Price & Size

The issue price of Rashi Peripherals IPO is in the range of Rs 295 to Rs 331 per share. While the total issue size of the Rashi Peripherals IPO is Rs 600 and that will be entirely the fresh issue of shares.

Rashi Peripherals IPO Launch Date

Rashi Peripherals IPO launch date is 7th Feb 2024, which means Rashi Peripherals IPO will be open on 07 Feb 2024 and closed on 09 Feb 2024. While the basis of the allotment date is 12 Feb 2024 and the expected listing date of Rashi Peripherals IPO is 14 Feb 2024.

Rashi Peripherals Financial Statements:

Particulars (Rs in Million) FY24 (6M) FY23 (6M) YoY (%) FY23 FY22 FY21 CAGR
Revenue from Operations 54685.1 50239.4 8.8% 94542.8 93134.4 59250.5 26.3%
Other Income 47.6 85.5   146.7 84.8 66.9
Total Income 54732.7 50324.9 8.8% 94689.5 93219.2 59317.4 26.3%
Operational Expenses 52397.3 48208.8   90500.6 89118.0 56579.8
Other expenses 678.7 750.9   1512.8 1049.1 585.3
EBITDA 1656.6 1365.1 21.4% 2676.1 3052.2 2152.3 11.5%
EBITDA Margin% 3.03% 2.72%   2.83% 3.28% 3.63%
Depreciation 90.6 72.7   166.7 116.9 75.1
Interest 539.9 398.4   863.2 536.8 288.5
Profit Before Tax 1026.1 894.1 14.8% 1646.3 2398.5 1788.7  
Total tax 305.9 220.3   412.8 576.4 425.2
Profit After Tax 720.2 673.8 6.9% 1233.4 1822.1 1363.5 -4.9%
PAT Margin% 1.32% 1.34%   1.30% 1.96% 2.30%  
EPS Diluted (Rs) 18.24 16.90 7.9% 29.50 43.57 31.20  

Source: DRHP & RHP

Rashi Peripherals Financial Performance

The revenge from operations of the company in the first half of FY24 stood at Rs 5468.51 crore which has increased around 9% from the same period of FY23. The EBITDA of the company in the first six months of FY24 has surged 21.4% to Rs 165.66 from Rs 136.5 crore in the corresponding period of FY23.

The PAT for the first six months of FY24 was Rs 72 crore increased by around 7% from Rs 67.38 crore in the same period of FY23. The EBITDA margins and PAT margins in the first six months of FY24 stood at 3.03% and 1.32% respectively.

In full-year FY23 the revenue from operations of Rashi Peripherals was Rs 9454.28 crore which has increased at a CAGR of 26.3% from Rs 5925.01 crore in FY21. The EBITDA during the same period grew at a CAGR of 11.5% from Rs 215.23 crore in FY21 to Rs 267.61 crore in FY23. However, the PAT has shown significant negative growth from FY21 to FY23 stood at Rs 123.34 crore from Rs 136.35 crore in FY21. The EBITDA margins and PAT margins of the company in FY23 were 2.83% and 1.30% respectively.

Rashi Peripherals IPO Promoters & Shareholding of the Company

Keshav Krishna Kumar Choudhary, Meena Choudhary, Manju Suresh Pansari, Krishna Kumar Choudhary (HUF) and Suresh Kumar Pansari are the main promoters of the company holding 15.86%, 13.80%, 12.63%, 12.39% and 11.21% stakes respectively in the company. For the details of more promoters' groups and other shareholders of the Rashi Peripherals, you can check the table below.

S.No. Name of the Shareholder Number of Equity Shares Held % of pre-Offer equity  share capital   held on   a   fully diluted basis
       
1 Keshav Krishna Kumar Choudhary 73,92,000 15.86%
2 MeenaChoudhary 64,30,242 13.80%
3 Manju Suresh Pansari 58,87,329 12.63%
4 Krishna Kumar Choudhary (HUF) 57,72,753 12.39%
5 SureshkumarPansari 52,23,750 11.21%
6 Volrado  Venture  Partners  Fund-III-BETA 32,15,434 6.90%
7 Kapal Suresh Pansari 30,87,000 6.62%
8 GazalPansari 25,79,934 5.54%
9 ChamanPansari 23,94,000 5.14%
10 Suresh M Pansari (HUF) 16,52,532 3.55%
11 MadhuriMadhusudanKela 16,07,717 3.45%
12 Krishna Kumar Choudhary 12,96,750 2.78%
  Total 4,65,39,441 99.87%

Source: RHP

Why Invest in Rashi Peripherals IPO?

While investing in any IPO-bounded company or already listed company you have to analyse the various factors that are responsible for the growth of the company. You have to perform the fundamental analysis that will help you to know the financial condition of the company and its competitive strength which are the growth-driving factors you can consider while investing in the Rashi Peripherals IPO.

Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe

While analyzing the fundamentals of the company, also check the risk factors that Rashi Peripherals can face while operating its normal course of business. These risk factors can affect the business operations and revenue of the company. You can check all these factors highlighted below.

Also Read: What are the Risk Factors Involved in Applying for an IPO

Strengths:

  • Rashi Peripherals is leading and fastest growing Indian distribution partner for information and communications technology products for global technology brands in India.
  • It intends to continue to leverage its distribution network, sales and marketing initiatives and the industry standing to establish relationships with new global technology brands and local brands to expand the vendor base, thereby growing the portfolio of products it distributes.
  • With the Pan-India and multi-channel distribution footprint backed by dedicated in-house infrastructure, it has branches in 50 cities that operate as sales and service centres and warehouses covering 730 locations located in the 28 States and Union Territories in India.
  • The company has maintained long-term relationships with several marquee global technology brands from whom it is procuring ICT products that it is supplying to its customers.
  • It has a diversified and comprehensive product portfolio and value-added solutions. Over the years, it has continuously added products across sub-segments like lifestyle, components, networking, personal computing, storage and memory, enterprise and embedded solutions.
  • The company also intends to increase the geographic penetration of its existing global technology brands into different states and in particular focus on tier II and tier III cities.
  • It is also looking to increase the wallet share with global technology brands for the existing portfolio as it believes there is potential and scope to grow the wallet share.
  • The company intends to continue to expand and diversify its existing product offerings. It has targeted brands that 230 focus on product design and has curated its portfolio to include Edge Processors for artificial intelligence, DRAM, flash memory for storage, automotive integrated circuits, and Internet-of-Things modules such as 4G, 5G and GPS.
  • The company also intends to introduce additional services that capitalize on its existing technological infrastructure and digital ecosystem to provide greater value to the global technology brands and Channel Partners and capture a greater wallet share through cross-selling and upselling opportunities.
  • At the financial end, the company has shown significant growth in revenge in the last three years. From FY21 to FY23, its revenue from operations grew at a CAGR of 26.3%, while EBITDA for the same grew at a CAGR of 11.5% during the same period. Though owing to a surge in interest cost in FY23, the net profit of the company from FY21 to FY23 has negatively grown at a CAGR of 5%. But now thanks to this IPO, it will improve after the debt is reduced by the company.

Risks:

  • IT is already a highly competitive industry and increasing competition in the information and communications technology products distribution industry may create certain pressures that may adversely affect the business operations and financial performance of the company.
  • The company’s business is also dependent on global technology brands effectively maintaining, promoting or developing their brands and maintaining standard quality products including launching new information and communications technology products at regular intervals.
  • It is also dependent on various vendors, who are global technology brands, for the products it is distributing. Any delay or failure on the part of such global technology brands to supply products may materially and adversely affect the business, profitability and reputation of the company.
  • If the company is unable to maintain the relationships with the Channel Partners or customers or if any of these parties change the terms of their arrangements with the company, then its business could be materially and adversely affected.
  • The company is reliant on relationships with certain online marketplaces and disruptions to such relationships or changes in its business practices may adversely affect its business and the financial condition, results of operations and cash flows.
  • Certain of the contracts or distribution agreements may have restrictive covenants and can typically be terminated without any cause, which could also negatively impact the operation and financial condition of the company.
  • The company has significant credit exposure to its Channel Partners and other customers, and negative trends in their businesses could cause a significant credit loss and negatively impact the cash flow and liquidity position of the company.
  • The Company itself, its Directors, Promoters and Subsidiaries are or may be involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have a material adverse effect on the business, financial condition, and reputation of the company.
  • Though, in the past three years company has tried to maintain the operating and net profit margins, it is operating at very thin margins, which could be affected if there is a marginal increase in the operating expenses and other expenses of the company in the coming future.

Also Read: Types of Risks Associated with Investing in the Stock Market

Rashi Peripherals IPO Grey Market Premium (GMP)

Grey Market Premium or GMP is the premium price over the IPO issue price, that is a speculator or trader is ready to pay in the grey market. GMP is an unofficial ecosystem that is determined in the grey market and keeps fluctuating as per the demand and supply of the shares in the primary market. However, GMP only should be not considered as a reliable factor to determine the listing price of an IPO-bounded company, as there are various factors that affect the stock market and individual stocks.

Also Read: What are the Top Factors Affecting the Stock Market in India

As per the sources, the GMP of Rashi Peripherals IPOis trading at around Rs 37 in the grey market which means the share of Rashi Peripherals is likely to list at around Rs 348 while considering the upper price band of the IPO. However, this GMP does not remain stable and keeps changing till the date of listing.

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable

Rashi Peripherals IPO Review & Analysis

The earnings per share (EPS) of the company for FY23 was Rs 29.50 per share, while as per the latest financial results of the company the EPS for the last six months of FY24 stood at Rs 18.24 per share. However, if we annualized this EPS for the full year FY24E, it would be at Rs 36.48, and while considering the upper band issue price of Rashi Peripherals IPO of Rs 311 per share it will be available at P/E of 8.5x.

While its nearest listed peer Redington (India) is trading at a P/E of 11.9x that shows, the Rashi Peripherals IPO is fairly priced. And further after reducing the debt, the net earnings of the company will improve which will make the share price of Rashi Peripherals cheaper compared to listed peers. Hence you can subscribe for the IPO with the medium to long-term investment point of view.

Also Read: Why You Should Invest in the Stock Market: Reasons  & Benefits

How to Apply for Rashi Peripherals IPO?

To apply in Rashi Peripherals you can use your existing trading account and demat account or apply for the new one at Moneysukh where you can get the best features of a demat account with the lowest brokerage for trading and investing in the equities, commodities and forex market at low pricing.

At Moneysukh you can choose the best online trading platform with additional facility to choose and trade with the most advanced software algorithms like Quantman,Trade Radar,Keev,AlgoBulls, TradeTron, and FoxTrader all are well-integrated with charting systems like TradingView backed with live feeds of market data and updated research report on stocks, industries and economy to its customers. However, right now to apply for Rashi Peripherals IPO you can follow the steps given below.

Steps to Apply for Rashi Peripherals IPO:

Step 1: To apply in Rashi Peripherals IPO you can use your PC or smartphone.

Step 2:Just browse to trade.moneysukh.com and log in with your User ID & password.

Step 3:Now look for the IPO section and click on the Rashi Peripherals IPO.

Step 4:Here you have to fill in the various details like price, quantity, and so on.

Note:Always bid at the cutoff price at the time of applying for the IPO and then submit your application. 

Step 5:Now make the payment and then submit your IPO application successfully.

How to Check Rashi Peripherals IPO Allotment Status?

Checking the IPO allotment status is very easy if you choose the best discount brokers in India. As per the tentative date of basis of allotment, you can check the allotment status of Rashi Peripherals IPO only from 12th Feb 2024 onwards. The refunds of the funds to investors if any allotment is not done will be initiated from 13th Feb 2024. The listing date of the Rashi Peripherals IPO is set at 14 Feb 2024.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

If the IPO is oversubscribed, the chances of getting the allotment for every investor become very low including the retail category and HNI category. Here you can adopt various tricks and tips to improve your chances of getting allotment of shares in the IPO. However, if get the allotment of shares, it will be reflected in your demat account before the date of listing to make it available for selling in the market.

Also Read: Benefits of Minor Demat account: Empowering the next Generation of investors

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