Rashi Peripherals, an information and communications technology products distributor, has filed the draft red herring prospectus with the capital markets regulator Sebi to raise Rs 750 crore through an initial public offering (IPO).
The public issue will be entirely a fresh issuance of shares and there is no offer-for-sale component.
The company will use the proceeds to repay debt (Rs 400 crore), meet working capital requirements (Rs 200 crore) for general corporate purposes.
Rashi Peripherals may also consider raising Rs 150 crore through private placement of equity shares. If the company raises funds in a pre-IPO placement, the fresh issue size will be reduced accordingly, it said.
The company has little more than Rs 1,000 crore of debt as of September 2022.
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Rashi Peripherals clocked a 34 percent growth in consolidated profit at Rs 182.5 crore for the financial year ended March FY22 and revenue from operations grew by 57.2 percent year on year to Rs 9,313.4 crore.
Profit for the six-month period ended September FY23 stood at Rs 67.37 crore on revenue of Rs 5,023.8 crore.
Incorporated in 1989 by Krishna Kumar Choudhary and Sureshkumar Pansari, Rashi Peripherals operated two verticals through 50 branches and 62 warehouses, covering 730 locations in India, as of September 2022.
Under the personal computing, enterprise and cloud solutions (PES) vertical, the company distributes personal computing devices, enterprise solutions, embedded designs & products and cloud computing.
The second vertical is lifestyle and IT essentials under which it distributes graphic cards, central processing units and motherboards, storage and memory devices, lifestyle peripherals and accessories, power equipment and networking and mobility devices.
Globally, the electronics and ICT products market is expected to grow at a CAGR of 14 percent between 2020 and 2025 and is projected to cross $350 billion in sales by 2025. IT spending in India is projected to reach a value of approximately $145 billion by 2025 growing at a CAGR of 10 percent, the DRHP said.
JM Financial and ICICI Securities are the lead managers to the offer.
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