Rashi Peripherals IPO to open on February 7, plans to raise Rs 600 crore

Rashi Peripherals IPO opens on February 7

Information and communications technology products distributor Rashi Peripherals is set to launch its Rs 600-crore initial public offering (IPO) on February 7. This will be the second IPO in the coming week after Park Hotels.

The subscription for the maiden public issue will close on February 9, while the anchor book will be launched for a day on February 6.

The IPO comprises only a fresh issue of Rs 600 crore by the Mumbai-based company, and there is no offer-for-sale component.

The actual issue size was Rs 750 crore, which got reduced to Rs 600 crore now, after the fundraising in a pre-IPO placement.

".....company, in consultation with the merchant bankers, has undertaken a pre-IPO placement of equity shares aggregating to Rs 150 crore. The size of the fresh issue has been reduced by Rs 150 crore under the pre-IPO placement. Accordingly, the revised fresh issue size is up to Rs 600 crore," Rashi Peripherals said in its IPO papers.

Also read: Nova Agritech lists at 36% premium to IPO price: Should you buy more, hold or book profit?

Volrado Venture Partners Fund-III-BETA and ace investor Madhusudan Kela's wife Madhuri Madhusudan Kela invested Rs 100 crore and Rs 50 crore respectively in the company via private placement (pre-IPO placement), on January 17, 2024.

Volrado and Kela are the only public shareholders in the company holding a 10.35 percent stake, while the remaining 89.65 percent of shares are held by promoters.

The Choudhary and Pansari-family promoted company will spend Rs 326 crore of the fresh issue proceeds for repaying debts and Rs 220 crore for working capital requirements.

Also read: Apeejay Surrendra Park Hotels sets price band at Rs 147-155 for Rs 920-cr IPO

As of November 2023, the total outstanding debt on its books stood at Rs 1,569.4 crore.

Rashi is among the leading national distribution partners for global technology brands in India for information and communications technology (ICT) products in terms of revenues and distribution network in FY23.

Its revenue from operations grew at a CAGR of 26.32 percent during 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.

JM Financial and ICICI Securities are the book-running lead managers to the issue.