Rashi Peripherals IPO fully subscribed on day 1

7 Feb 2024 , 07:05 PM

On Wednesday, February 7, subscriptions for the information and communications technology (ICT) products distributor Rashi Peripherals’ initial public offering (IPO) opened. The deadline for the three-day bidding procedure is February 9.

Global technology brands are distributed in India by Rashi Peripherals. Their area of expertise is ICT-related items. Value-added services like pre-sales, technical assistance, marketing, credit solutions, and warranty management services are among the services the company offers.

One day prior to the offer launch on February 6, Rashi Peripherals raised ₹180 Crore from institutional investors.

Several institutional investors participated in the anchor book, including Volrado Venture Partners Fund, Ashoka India Equity Investment Trust, Whiteoak Capital, ICICI Prudential Mutual Fund, and Bandhan Mutual Fund.

The market lot for the IPO is 48 shares, with a price range of ₹295–311.The IPO does not include an offer to sell; rather, it is a completely new issuance of equity shares valued at ₹600 Crore. ₹220 Crore of the IPO proceeds will go towards general corporate objectives and working capital needs, while ₹326 Crore will be utilised to pay down debt.

After raising money through a pre-IPO placement, the ₹750 Crore offering size was lowered to ₹600 Crore.

A little over half of the issue has been designated for institutional buyers who meet certain requirements, 15% for non-institutional bidders, and the remaining 35% for individual investors.

Promoters own 89.65% of the company’s shares; Volrado and Kela are the only two public shareholders with a 10.35% stake.

According to data available on the NSE until 5:00 pm, the Rashi Peripherals initial public offering (IPO) has received 109% of its total bids for equity shares on the first day. The offer comprises 1.42 crore shares, however the total bids received amount to 1.54 Lakh.

Thus far, the retail category has subscribed to the public issue 1.36 times, while the Non-Institutional Investors’ (NII) category has subscribed 1.87 times. The Qualified Institutional Buyers category was subscribed 0.01 times.

In terms of sales and distribution network for ICT products in India, Rashi Peripherals is one of the top national distribution partners for international technology brands in the fiscal year 2023. In terms of revenue growth between the fiscal years 2021 and 2023, they are also among the national distribution partners for international technology brands in India that are expanding the fastest.

Their activities generated ₹54,685 Million in revenue in the six months that ended September 30, 2023, growing at a compound annual growth rate (CAGR) of 26.32% from ₹59,250 Million in fiscal 2021 to ₹94,543 Million in fiscal 2023.

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