Rashi Peripherals stock lists at 9% premium

On February 14, Rashi Peripherals marked its entry into the stock market with a solid debut, listing at a notable premium over its initial public offering (IPO) price. The stock opened at Rs 339.5 on the National Stock Exchange and Rs 335 on the BSE, representing a 9.16% premium over the issue price of Rs 311.

Before its official listing, Rashi Peripherals’ stock was trading at a 13% premium in the grey market, an informal platform where stocks are traded prior to their IPO allotment, often used to gauge the expected listing price.

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The Rs 600-crore IPO garnered significant interest from investors, with the subscription reaching 59.71 times the offer size. Qualified institutional buyers led the subscription, oversubscribing their quota by 143.66 times, followed by non-institutional investors at 62.75 times, and retail investors at 10.44 times.

The IPO comprised entirely of fresh issue shares, totaling 1.93 crore shares. Prior to the IPO, Volrado Venture Partners Fund-III-BETA and well-known investor Madhuri Madhusudan Kela, wife of ace investor Madhusudan Kela, invested Rs 100 crore and Rs 50 crore, respectively, through pre-IPO placements. The price band for the IPO was set at Rs 295-311 per share.

Proceeds from the IPO will be utilized primarily to repay loans amounting to Rs 326 crore and meet working capital requirements of Rs 220 crore. The remaining funds will be allocated towards general corporate purposes.

In terms of financial performance, Rashi Peripherals reported a net profit of Rs 72 crore for the six months ended September FY24, marking a 6.9% increase year-on-year. During the same period, revenue stood at Rs 5,468.5 crore, reflecting an 8.8% growth over the previous year. As of November 30, 2023, the company’s consolidated outstanding borrowings amounted to Rs 1,569.36 crore, with a debt-to-equity ratio of 1.82 times.

Rashi Peripherals serves as a national distribution partner for leading global technology brands in India, specializing in information and communication technology (ICT) products. The company operates primarily in two business verticals: Personal Computing, Enterprise, and Cloud Solutions (PES), and Lifestyle and IT Essentials (LIT).