top of page
  • Writer's pictureJatin Agarwal

Rashi Peripherals IPO

Rashi Peripherals IPO: Catalyzing Tech Distribution in India


Rashi Peripherals Logo

Company Overview

Founded in 1989, Rashi Peripherals Limited has emerged as one of India's leading technology distribution companies, specializing in Information and Communication Technology (ICT) products. As a national distribution partner for 52 global technology brands, Rashi Peripherals offers a comprehensive suite of value-added services, including technical support, marketing services, and warranty management, to ensure seamless operations across its extensive network of 50 branches and 63 warehouses, covering 680 locations across India​.

​​​​

Company Financials

Over the years leading to 2023, Rashi Peripherals has shown commendable growth in revenue, rising from ₹59,250.48 million in FY 2021 to ₹94,542.79 million in FY 2023. This growth is mirrored in its equity and profit margins, showcasing a stable financial expansion amidst the dynamic tech distribution sector​.

  • Revenue (FY 2023): ₹94,542.79 million

  • Profit After Tax (FY 2023): ₹1,233.43 million

  • Return on Net Worth (RoNW): 17.60%

  • Diluted Earnings Per Share (EPS): ₹29.50


Company SWOT Analysis

  • Strengths: Extensive distribution network, partnerships with global tech giants, diversified product offerings.

  • Weaknesses: Heavy reliance on external brand suppliers, lower inventory turnover ratio indicating potential inefficiencies.

  • Opportunities: Expansion into emerging markets and non-metro cities, increasing demand for ICT products.

  • Threats: Operational risks including supply chain disruptions, competitive market landscape​.

Company Valuation

Rashi Peripherals boasts a market capitalization of ₹2049.48 Cr, with valuation ratios indicating a strong position in the market:

  • ROE: 19.33%

  • ROCE: 14.21%

  • Debt/Equity: 1.53

  • P/E (x): 11.75 to 14.23, showcasing a competitive valuation against peers​.

​​

IPO Overview

The IPO is set to bolster Rashi Peripherals' position in the tech distribution industry, marking a significant phase of growth and expansion​

​.

IPO Details

  • Opening Date: February 7, 2024

  • Closing Date: February 9, 2024

  • Price Band: ₹295 to ₹311 per share

  • Issue Size: ₹600 Crores

  • Lot Size: 48 Shares

  • Minimum Investment: ₹14,928 for retail investors​

​​

Objectives of the Issue

Funds from the IPO are earmarked for debt repayment (₹3,260 million), funding working capital requirements (₹2,200 million), and other general corporate purposes, aiming to optimize operational efficiency and scale the business​.

IPO Grey Market Premium (GMP)

The GMP is currently at ₹85 which indicates listing gains are very likely.

Conclusion

Rashi Peripherals' IPO presents a promising opportunity for investors to engage with a key player in India's burgeoning tech distribution market. With its extensive brand partnerships and nationwide reach, Rashi Peripherals is poised for significant growth, leveraging India's digital expansion and rising ICT demand​.

​​​​

Disclaimer

All information is provided for educational and informational purposes only. Data is fetched from publicly available sources such as the DRHP filed by the company and other reliable sources. The website or the author takes no guarantee for the accuracy of the data; however, we have tried our best to present accurate data to our readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.

274 views0 comments

Recent Posts

See All

Comments


bottom of page