Rashi Peripherals Soars on Debut, Closing 3.3% Above Listing Price

14 Feb 2024 , 05:21 PM

The distributor of information and communication technology products, Rashi Peripherals, closed on listing day at ₹321.5, supported by the robust IPO subscription figures and the management’s optimistic view for earnings.

The listing premium was also be supported by stable conditions in the equity market.

From February 7–9, the ₹600-Crore initial public offering (IPO) saw 59.71 times as many subscriptions as it did, indicating robust participation from all investor groups. Leading the charge were qualified institutional buyers, who selected 143.66 times the amount allotted to them. Retail investors bid 10.44 times the reserved amount, while non-institutional investors purchased 62.75 times the allocated quota.

For the most part, the state of the equities market is stable as well, even though the benchmark indices have been rangebound for the past month without any notable correction.

The price per share for the final issuance has been set at ₹311.

One of the top distributors of IT and communication products in India is Rashi Peripherals. Its main business categories are lifestyle and IT Essentials (LIT) and personal computing, enterprise, and cloud solutions (PES).

The business has steadily grown both its operations and distribution system over time. It has continuously expanded its product line by bringing in new international technology brands like Asus, Dell, HP, Lenovo, Logitech, and others. By collaborating with these brands to distribute products across categories, it has also assisted the company in fostering commercial relationships with these businesses.

Due to a spike in product demand, the Mumbai-based company’s finances performed well in FY21 and FY22. Despite having a stronger top line for FY23, the company reported lower bottom lines because of decreased profits following the peak of the pandemic. ‘Its H1-FY24 performance indicates restoration of trends, and the management is confident of maintaining the earning trends,’ Amit Goel stated.

Compared to the previous fiscal year, net profit for the year ended in March of FY23 dropped precipitously by 32.4% to ₹123.3 Crore. Even the top line performance was lacklustre, increasing only 1.5% to ₹9,454.3 Crore in the same time frame.

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