Rashi Peripherals IPO: 10 things to know before subscribing to the Rs 600-crore issue

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Rashi Peripherals Limited IPO is set to open for subscription on February 7. The Rs 600 crore issue is an entirely fresh issue of 1.93 crore shares.

Here are 10 key things to know before subscribing to the offer:

IPO Dates

The IPO will open for subscription on February 7, 2024, and close on February 9, 2024.

Price Band

The price band for the issue has been fixed at Rs 295-311 per share.

Offer Details

The company is planning to raise Rs 600 crore via the issue and Up to 50 percent of the issue size has been reserved for qualified institutional buyers (QIB). Out of the rest, 15 percent is kept for high-net-worth individuals and 35 percent for retail investors.

In the pre-IPO placement, Volrado Venture Partners Fund-III-BETA and ace investor Madhusudan Kela's wife Madhuri Madhusudan Kela invested Rs 100 crore and Rs 50 crore.

Objectives of the Issue

The net proceeds from the offer will be used for prepayment or scheduled re-payment of certain outstanding borrowings, funding working capital requirements, and general corporate purposes.

Lot Size

Retail investors can bid for a minimum of 48 shares and in multiples of 48 after that. Hence the minimum investment by retail investors would be Rs 14,160. At the upper end, the bidding amount will increase to Rs 14,928.

Company Profile

Incorporated in 1989, Rashi Peripherals Limited is a distributor of global technology brands in India, specializing in ICT (Information and Communication Technology) products. The company offers value-added services including pre-sales, technical support, marketing, credit solutions, and warranty management services.

Financials of the Company

Its revenue from operations recorded a CAGR of 26.32 percent in FY21-FY23 to Rs 9,454.3 crore in the year ended March FY23, while the topline was at Rs 5,468.5 crore for the six months ended September FY24.

Lead Managers

JM Financial Limited and ICICI Securities Limited are the book-running lead managers of the Rashi Peripherals IPO, while Link Intime India Private Ltd is the registrar for the issue.

Key Risks

i.) The company relies on relationships with certain online marketplaces and disruptions to such relationships or changes in their business practices, may adversely affect Rashi's business and financial condition, results of operations, and cash flows.

ii.) Rashi is reliant on revenue generated from its lifestyle and IT essentials vertical and our personal computing, enterprise, and cloud solutions vertical for sales revenue. Any sudden fall in the revenues from either of these verticals can hurt financial condition and profitability.

iii.) International operations expose the company to complex management, legal, tax, and economic risks. Its purchase and supply arrangements may be governed by the laws of foreign jurisdictions and disputes arising from such arrangements may be subject to the exclusive jurisdiction of foreign courts.

Listing Date

Rashi Peripherals IPO will be listed on BSE, NSE with a tentative listing date fixed as Wednesday, February 14, 2024.

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