Rashi Peripherals listed at 9% premium, at ₹339 on NSE

14 Feb 2024 , 10:01 AM

Rashi Peripherals made a strong debut on the stock exchanges, with its shares listing at a 9% premium. On the NSE, the shares opened at ₹339.50, reflecting a premium of 9.16% over the issue price of ₹331. Similarly, on the BSE, the shares debuted at ₹335, representing a premium of 7.72%.

The IPO, valued at ₹600 Crore, witnessed robust demand during its subscription period from February 7 to February 9, with an oversubscription rate of 59.71 times. Qualified institutional buyers led the charge, subscribing 143.66 times the portion reserved for them. Non-institutional investors also showed strong interest, subscribing 62.75 times, while retail investors bid 10.44 times the allocated quota.

Rashi Peripherals, a leading distributor of information and communication technology products in India, operates primarily in two business verticals: personal computing, enterprise, and cloud solutions (PES), and lifestyle and IT essentials (LIT). Over the years, the company has expanded its distribution network and added renowned global technology brands such as Asus, Dell, HP, Lenovo, and Logitech to its portfolio.

Although the company witnessed a surge in demand for its products in FY21 and FY22, leading to strong financial performance, FY23 saw lower bottom lines due to reduced margins post the pandemic. However, the company's H1-FY24 performance indicates a restoration of trends, with management expressing confidence in maintaining earnings.

In FY23, Rashi Peripherals reported a 32.4% decline in net profit to ₹123.3 Crore compared to the previous fiscal, despite a modest 1.5% increase in revenue to ₹9,454.3 Crore.

As the IPO comprised only a fresh issue, the entire proceeds will be utilized by the company. Of the fresh issue proceeds, ₹326 Crore will be allocated for debt repayment, ₹220 Crore for working capital requirements, and the remaining funds for general corporate purposes.