Rashi Peripherals IPO Overwhelms, Subscription Reaches 2.76x on Day 2; Retail Segment Hits 3.13x

8 Feb 2024 , 03:49 PM

Rashi Peripherals’ initial public offer (IPO) has achieved 2.76 times subscription on Thursday, the second day of the issue.

The retail portion of the IPO has been oversubscribed by 3.13 times. Non-institutional investors’ portion was oversubscribed by 4.67 times, while the qualified institutional buyers (QIBs) portion witnessed a subscription of 0.69 times.

The IPO, set to close on February 9, comprises a fresh equity issue of ₹600 Crore.

Prior to the IPO opening, the company secured ₹180 Crore from anchor investors, including White Oak Capital, Ashoka India, ICICI Prudential, and Volrado Ventures.

Rashi Peripherals is a leading national distribution partner for global technology brands in India, boasting partnerships with over 52 global technology brands and offering over 10,000 products in the information and communications technology (ICT) sector.

Before the IPO, the company completed a pre-IPO placement by offering 48.23 Lakh shares to private investors, including Madhu Kela.

The IPO has a price band of ₹295-311 per share, with a minimum bid of 48 shares and multiples thereafter. Qualified institutional buyers are allotted 50% of the issue, non-institutional bidders have 15%, and retail investors have 35% reserved.

In the six months ending September 2023, Rashi Peripherals recorded a 9% year-on-year growth in revenue from operations to ₹5,467 Crore, with a 7% increase in net profit to ₹72 Crore.

The company intends to utilize the net proceeds from the IPO for debt repayment, funding working capital requirements, and general corporate purposes.

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