Ahead of the IPO opening, the company has raised Rs 180 crore from anchor investors, where White Oak Capital, Ashoka India, ICICI Prudential, Volrado Ventures among others invested.
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Rashi Peripherals is among the leading national distribution partners for global technology brands in India for information and communications technology (ICT) products in terms of revenues and distribution network in FY23, boasting partnerships with over 52 global technology brands and offering over 10,000 products.
Before the IPO, the company successfully completed a pre-IPO placement by offering 48.23 lakh shares to private investors under which Madhu Kela picked up some stake.
Rashi Peripherals IPO review
Analysts advised investors to subscribe to the issue as the company has a good financial track record and robust distribution network and can benefit from the overall industry outlook, which is positively poised.”The IPO valuation of 10.54x P/E appears fully priced on a current basis. The company’s future growth potential and the positive industry outlook are encouraging, thus we recommend Subscribe rating for this IPO,” said Swastika Investmart.”Rashi Peripherals emerges as one of the partners to bridge the gap for such emerging demand in India, given its diverse marquee suppliers and long-grown customer base. Hence, we expect the company to benefit from such a demand scenario in the long term,” said BP Wealth.
Rashi Peripherals IPO price band
The company has fixed a price band of Rs 295-311 per share and investors can bid for a minimum of 48 shares and in multiples thereafter.
Rashi Peripherals IPO GMP
Ahead of the issue opening, the company’s shares are trading with a GMP of Rs 70 in the unlisted market.
Other details
About 50% of the issue is reserved for qualified institutional buyers, 15% for non-institutional bidders, and 35% for retail investors.
In the six months ended September 2023 period, revenue from operations grew 9% year-on-year to Rs 5,467 crore, while net profit increased 7% to Rs 72 crore.
The company proposes to use the net proceeds for repayment of debt, funding working capital requirements and the rest for general corporate purposes.
JM Financial and ICICI Securities are the book-running lead managers to the offer.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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