Rashi Peripherals Limited IPO - Review & Fundamental Analysis

Rashi Peripherals Limited IPO

Rashi Peripherals Limited’s IPO consists of a fresh issue of shares worth INR 600 crores. The company plans to repay the borrowings and meet its working capital requirements with the raised funds. 

Rashi Peripherals IPO – Important Details

Rashi Peripherals Limited IPO DateFebruary 7, 2024 to February 9, 2024
Rashi Peripherals Limited IPO Listing DateFebruary 14, 2024
Rashi Peripherals Limited IPO PriceINR 295 to 311 per share
Rashi Peripherals Limited IPO Lot Size48 Shares
Rashi Peripherals Limited IPO Total Issue SizeINR 600 crores
Rashi Peripherals Limited IPO Basis of AllotmentFebruary 12, 2024
Rashi Peripherals Limited IPO Initiation of RefundsFebruary 13, 2024
Rashi Peripherals Limited IPO Credit of Shares to DematFebruary 13, 2024
Rashi Peripherals Limited IPO Issue TypeBook Built Issue IPO
Rashi Peripherals Limited IPO Listing AtBSE, NSE

Rashi Peripherals Ltd IPO – Company Profile

Rashi Peripherals was distinguished among India’s top ICT distribution partners in Fiscal 2022, as per Technopak Report. Rapid revenue growth from Fiscal 2020 to 2022 and a robust array of end-to-end value-added services underline their market leadership.

Founded in 1989 with 33+ years of experience, Rashi Peripherals transitioned to ICT product distribution post-1991 IT sector liberalization. Pioneering formalization, they’ve distributed 293.63 million units, facilitating global brand entry and maintaining a vast distribution network in India. 

Rashi Peripherals operates in two key verticals: Personal Computing, Enterprise, and Cloud Solutions (PES), distributing computing devices and solutions, and Lifestyle and IT essentials (LIT), covering components, storage, peripherals, power equipment, and networking/mobility devices.

Rashi Peripherals Ltd IPO – Fundamental Analysis

Rashi Peripherals demonstrates robust revenue growth and improved profitability, yet declining Return on Net Worth raises concerns. Positive trends in Earnings Per Share are counterbalanced by heightened financial leverage and decreased inventory turnover, urging careful investor evaluation.

Revenue Growth:

The company has shown consistent revenue growth from ₹59,250.48 million in 2021 to ₹94,542.79 million in 2023. This indicates a positive trend in the company’s top-line performance.

Profitability:

The Profit and Loss After Tax has increased from ₹1,363.50 million in 2021 to ₹1,233.43 million in 2023. However, there is a slight decrease in profitability in 2023 compared to the previous year.

Return on Net Worth (RoNW):

RoNW has declined from 33.07% in 2021 to 17.60% in 2023. This signifies a decrease in the company’s ability to generate profit relative to its net worth. Investors generally prefer companies with higher RoNW.

Earnings Per Share (EPS):

Diluted EPS has shown an increasing trend, going from ₹31.20 in 2021 to ₹29.50 in 2023. Although the EPS has slightly decreased, the overall trend is positive.

Financial Position:

Total Assets and Total Liabilities have increased, indicating the company’s growth. However, investors should closely monitor the liabilities, as they directly impact the debt-equity ratio.

Debt Equity Ratio:

The Debt Equity Ratio has increased from 1.23 in 2021 to 1.53 in 2023. A higher debt-equity ratio indicates increased financial leverage and higher financial risk. This may be a concern for risk-averse investors.

Liquidity Position:

The Current Ratio has slightly decreased from 1.34 in 2021 to 1.31 in 2023. While it is still above 1, indicating the company’s ability to meet short-term obligations, investors should monitor this ratio for any further decline.

Operational Efficiency:

The Inventory Turnover Ratio has decreased over the years, from 10.51 in 2021 to 6.62 in 2023. A lower inventory turnover ratio may suggest inefficiency in managing inventory.

Rashi Peripherals IPO Financial Information

ParticularAs of 31 March 2021As of 31 March 2022As at 31 March 2023
Revenue (₹ in million)59,250.4893,134.3894,542.79
Equity (₹ in million)3,970.025,783.296982.68
Expenses (₹ in million)57,528.6790,820.7493,043.21
Profit and Loss After Tax (₹ in million)1,363.501,825.111,233.43
RoNW (%)33.0731.6617.60
Diluted EPS only (₹)31.2043.5729.50
Total Assets (in millions)15,943.9026,701.5827,985.99
Total Liabilities (in millions)11,973.8820,918.2921,003.31
NAV (in million)94.34137.63167.56
Debt Equity Ratio1.231.521.53
Current Ratio1.341.271.31
Inventory Turnover Ratio10.519.936.62

Rashi Peripherals Ltd IPO Peer Comparison

Rashi Peripherals Ltd exhibits a lower total income of ₹94,869.47 million. Rashi Peripherals also has a higher face value, EPS, and RoNW, showcasing favorable financial metrics, but its P/E ratio is not available for direct comparison.

CompanyTotal Income (₹ in million)Face Value per Equity Share (₹)P/EEPS (Basic) (₹)EPS (Diluted) (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Rashi   PeripheralsLimited94,869.475NA29.5029.5017.60167.56
Redington     IndiaLimited7,95,187.1029.9217.8217.8120.1088.63

Rashi Peripherals IPO Objective

The main objectives of Rashi Peripherals IPO are to repay certain company borrowings and meet its working capital requirement.

  1. Prepayment or scheduled repayment of all or a portion of certain outstanding borrowings availed by the company: The company intends to utilize INR 326 crores from the Net Proceeds towards prepayment or scheduled repayment of all, or a portion, of the outstanding amount on certain loans availed by the company aiming a debt reduction, cost savings, favorable ratios, and internal accruals for growth.
  1. Funding working capital requirements of the company: The company proposes to utilize INR 220 crores from the Net Proceeds towards funding its working capital requirements in Fiscal 2024. Aiming at strategic expansion, the company seeks innovative solutions for growth.
  1. General corporate purposes: The company intends to deploy the balance funds towards the general corporate goals, including meeting diverse fund needs for growth, marketing, and corporate contingencies.

Rashi Peripherals Limited IPO Risks And Challenges

Rashi Peripherals risks include its heavy dependence on technology brand suppliers; delays or failures in product supply affect profitability and reputation. Strong relationships with partners and customers are crucial. The Offer Price metrics may not truly mirror Equity Shares’ market value post-listing.

  • Their business relies on global technology brand suppliers. Any delays or failures in their product supply may significantly impact the business, profitability, and reputation, highlighting a critical dependence on these vendors.
  • Maintaining relationships with Channel Partners and customers is vital. Any inability to do so or changes in their terms could materially and adversely affect their business, emphasizing the significance of stable partnerships.
  • The Offer Price, market capitalization to total revenue multiple, and price-to-earnings ratio, based on the Company’s Offer Price, may not accurately reflect the market price of Equity Shares upon listing.

Rashi Peripherals Ltd IPO – Industry & Market Potential

India’s digital landscape expands with increased internet connectivity, government initiatives, and rising adoption in non-metro cities. This growth drives demand for ICT products, offering opportunities for distributors and resellers amid the continuous evolution of digital use cases.

The Indian PC market, encompassing desktops, laptops, notebooks, and accessories, is valued at ₹952 billion in 2021, with a projected CAGR of 12% from 2021 to 2025, reaching ₹1,472 billion. PC shipments grew from 9 million units in 2018 to 15 million in 2021. 

Indian businesses are increasingly acknowledging emerging digital technologies. While currently tapping only a fraction of AI potential, advancements in robotics, sensors, and computer vision make robots accessible across industries, suggesting a significant transformative shift. 

Rashi Peripherals Limited IPO – Type of Offer

Rashi Peripherals IPO will have a fresh issue of shares worth INR 600 crores to raise capital. The raised funds will be used to repay the borrowings and to fulfill the company’s working capital requirements. 

Rashi Peripherals Ltd IPO Offer Size

The offer size of Rashi Peripherals is INR 750 crores. The raised funds will be used to repay the borrowings and to fulfill the company’s working capital requirements.

Rashi Peripherals Limited IPO Allotment Structure

Rashi Peripherals Limited’s IPO allocation designates 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs) in line with SEBI regulations.

Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

●  Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.

How to apply for a Rashi Peripherals Ltd IPO?

To apply for the Rashi Peripherals  Limited through Alice Blue, you would typically follow these steps:

1.  Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.

2.  Check for IPO Details: Once your account is active, you can check for the Rashi Peripherals  Limited IPO details in the IPO section of the Alice Blue platform.

3.  Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.

4.  Submit the Application: Confirm all your details and submit your application.

 You can apply for Rashi Peripherals  Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check Rashi Peripherals Limited IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1.  Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

2.  Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.

3.  Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.

4. Select the Rashi Peripherals  Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Rashi Peripherals  Limited IPO.

5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Rashi Peripherals  Limited IPO:

Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Rashi Peripherals  Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Rashi Peripherals  Limited IPO Offer Registrar

The registrar for the Rashi Peripherals  Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Link Intime India Private Limited

C-101, 1stFloor, 247 Park 

L.B.S. Marg, Vikhroli West 

Mumbai 400 083 

Maharashtra, India 

Tel: + 91 22 4918 6200 

E-mail: [email protected] 

Website: www.linkintime.co.in 

Rashi Peripherals  Limited IPO FAQs

1. What is the allotment date of Rashi Peripherals  Limited’s IPO?

The allotment date of the Rashi Peripherals  Limited’s IPO is February 12, 2024.

2. What is the price band of Rashi Peripherals  Limited’s IPO?

The price band of the issue has not been announced by the company.

3. What is the size of Rashi Peripherals  Limited’s IPO?

Rashi Peripherals Limited’s IPO consists of a fresh issue of shares worth INR 600 crores. The raised funds will be used to repay the borrowings and to fulfill the company’s working capital requirements. 

4. What is the listing date of Rashi Peripherals  Limited’s IPO?

The listing date of  Rashi Peripherals  Limited’s IPO is February 14, 2024.

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