Rashi Peripherals Ltd IPO: Review, Valuation, Date & GMP

 Rashi Peripherals Limited IPO  - Complete Overview

Rashi Peripherals Limited, established in 1989, has over 33 years of experience distributing ICT products in India.  The company is into two main things. Firstly, they provide computers, business solutions, and cloud services, including special designs. 

Secondly, they distribute various items like graphic cards, CPUs, storage devices, lifestyle gadgets, accessories, and tools. Rashi Peripherals operates a widespread network with 50 branches and 62 warehouses across India, covering 730 locations. 

As of September 30, 2023, the company is the national distributor for 52 global technology brands. They serve well-known clients such as Dell, ASUS, HP, Lenovo, Logitech, NVIDIA, Intel, and Western Digital. The company employs 1,433 individuals, including 549 in sales and marketing and 64 in technical support.

 

Rashi Peripherals Limited IPO Overview

Rashi Peripherals Limited IPO date is slated to be open for subscription from February 7, 2024, to February 9, 2024. This BSE, NSE IPO follows a Book Built Issue IPO.

Rashi Peripherals Limited IPO price is fixed at Rs. 295 -   Rs.311 per share.

The total issue size of this IPO amounts to Rs.600 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

 

Rashi Peripherals Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	7 February 2024
IPO Closing Date	9 February 2024
IPO Allotment Date	12 February 2024
Refund initiation	13 February 2024
IPO Listing Date	14 February 2024

 

Rashi Peripherals Limited IPO Details 

IPO Opening & Closing date	7 February to 9 February 2024
Face Value	Rs.5 per share
Issue Price	Rs. 295 to Rs. 311 per share
Lot Size	48 Shares
Price of 1 lot	Rs. 14,928
Total Issue Size	19,292,604 shares (aggregating up to Rs.600 Cr)
Fresh issue	19,292,604 shares (aggregating up to Rs.600 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

 

Rashi Peripherals Limited IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	48	Rs.14,928
Maximum Lot Investment (Retail)	13 lot	624	Rs.94,064
Minimum Lot Investment (HNI)	14 lot	672	Rs.2,08,992
Maximum Lot Investment (HNI)	66 lot	3,168	Rs.9,85,248

 

Rashi Peripherals Limited IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Minimum 35%
Other Shares Offered	Minimum 15%

 

Company Financial

Rashi Peripherals Limited's financials for FY 23 as of Sept 30 shows growth in financials compared to the previous fiscal year.

(Amount in Crore)

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	4,058.64	2,798.60	2,669.76
Total Revenue	5,473.27	9,468.95	9,321.92
PAT	72.02	123.34	182.51
Net worth	772.74	700.12	575.07
Reserve & Surplus	686.24	1,395.20	557.84
Total Borrowings	1,395.20	1,065.76	881.74

 

Revenue Distribution Business Wise

In FY 23 as of Sep 30, Companies revenue is mainly derived from Personal Computing, Enterprise, and Cloud solutions.

(in % age)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
PES– Personal Computing, Enterprise and Cloud Solutions	56.99%	55.98%	57.48%
LIT – Lifestyle and IT Essentials	43.01%	44.02%	42.52%
Total	100.00%	100.00%	100.00%

 

Revenue Distribution Channel Wise

In FY 23, Rashi Peripherals Limited's revenue came mostly from General Trade, followed by E-Commerce and Modern Trade.

(in % age)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
General Trade	69.59%	80.56%	80.74%
Modern Trade	9.62%	6.08%	5.17%
E-Commerce	20.33%	12.90%	13.85%
Others	0.46%	0.46%	0.24%
Total	100.00%	100.00%	100.00%

 

Revenue by Operations

Rashi Peripherals Limited has experienced growth in FY 23, evident in higher revenue from operations compared to previous years.

(Amount in Crores)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	54,68.51	94,54.27	93,13.43
Other Income	4.75	14.66	8.48
Total Revenue	54,73.26	94,68.94	93,21.92

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Prepayment or scheduled repayment of all or a portion of certain outstanding borrowings availed by the Company.

• Funding working capital requirements of the Company. 

• General corporate purposes.

 

Promoters and Management of Rashi Peripherals Limited IPO

1. Krishna Kumar Choudhary.

2. Sureshkumar Pansari.

3. Kapal Suresh Pansari.

4. Chaman Pansari. 

5. Keshav Krishna Kumar Choudhary.

6. Suresh M Pansari HUF.

7. Krishna Kumar Choudhary (HUF)

Pre-issue Promoter Shareholding	89.65%
Post-issue Promoter Shareholding	63.41%

 

Rashi Peripherals Limited IPO Lead Managers

•  Jm Financial Limited

• ICICI Securities Limited

 

Peers of Rashi Peripherals Limited IPO

Rashi Peripherals Limited IPO shows higher P/E and EPS compared to Redington (India) Ltd.

Name of the Company	Face Value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Rashi Peripherals Limited	5	10.55	29.50
Redington (india) Ltd.	2	9.92	17.82

 

Evaluation

The IPO is priced within the range of Rs. 295 to Rs. 311 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 29.50 from the last year, the resulting P/E ratio is 10.55x.

- Taking into account the weighted EPS of Rs 34.47 for the last three years, the P/E ratio amounts to 9.03x.

    

Comparative Analysis with Industry Average:

- The industry's average P/E is 9.92x.

 

As a result, the IPO price range, with a P/E ratio ranging from 10.55x to 9.03x, seems neutral in comparison to the industry average of 9.92x.

 

 

Dividend Policy

The most recent dividend disclosed was an interim dividend of INR 18.80 million declared on March 31, 2023. Each equity share received a dividend of INR 0.45, and the dividend rate was 10%. The face value of equity shares is INR 5. 

Whether we can pay dividends in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

• A pan-India and multi-channel distribution footprint supported by dedicated in-house infrastructure.

• Long-term relationships with marquee global technology brands, backed by a committed engagement strategy with customers.

• Leading and fastest-growing Indian distribution partner for information and communications technology products.

 

IPO's Weaknesses:

• Heavy losses may result from terminated contracts, product liability claims, and failure to maintain e-commerce marketplace relationships.

• Business is affected by disruptions in supply from global technology partners, impacting operations and profitability.

• Impact on operations and profitability can also occur due to a decline in the reputation of technology partners.

 

IPO GMP Today

The Latest GMP of Rashi Peripherals Limited IPO is Rs.34

 

Conclusion

Rashi Peripherals Limited, with over 33 years of experience in distributing ICT products, is set to launch its IPO from February 7 to February 9, 2024. The company, operating in two main segments, has shown growth in financials for FY 23 compared to the previous fiscal year. The IPO, priced between Rs. 295 to Rs. 311 per share, is within a reasonable range. Investors should consider the company's strengths, weaknesses, and the industry average P/E ratio in their decision-making process.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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