On the first day of Subscription for the Rashi Peripherals Limited IPO, the Qualified Institutional Buyers (QIBs) subscribed 0.01 times. In comparison, Non-Institutional Investors showed significant interest with a subscription rate of 1.87 times. Retail Individual Investors (RIIs) also displayed strong participation, subscribing 1.36 times.
Overall, the subscription level stood at 1.08 times. This indicates a promising start to the IPO, with considerable investor interest across different categories.
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Rashi Peripherals IPO – Fundamental Analysis
The company has demonstrated consistent revenue growth, increasing from ₹59,250.48 million in 2021 to ₹94,542.79 million in 2023, indicating a positive trend in its top-line performance.
Despite a rise in profit and loss after tax from ₹1,363.50 million in 2021 to ₹1,233.43 million in 2023, profitability slightly decreased in 2023. Return on Net Worth (RoNW) dropped from 33.07% in 2021 to 17.60% in 2023, signifying reduced profit generation relative to net worth.
Diluted EPS exhibited an upward trajectory, climbing from ₹31.20 in 2021 to ₹29.50 in 2023. However, the debt-to-equity Equity Ratio surged from 1.23 in 2021 to 1.53 in 2023, posing increased financial risk.
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Rashi Peripherals 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 operations heavily hinge on technology brand suppliers globally. Any supply disruptions could severely affect business, profitability, and reputation, underscoring reliance on these suppliers. Maintaining strong ties with channel partners and customers is crucial, as changes may significantly impact business, stressing the importance of stable partnerships.
