Rashi Peripherals made a modest entrance on the stock market, with its shares starting off at a 9.16% premium on the NSE, priced at ₹339.50, slightly above its issue price of ₹311. The company’s ₹600 crore IPO, exclusively consisting of fresh shares without an offer for sale, also saw a similar uptick on the BSE, where it debuted at ₹335, marking a 7.72% increase over the issue price. Despite market predictions placing the listing price between ₹371 and ₹381, the actual listing was more conservative.
The IPO attracted considerable attention, oversubscribed 59.71 times according to BSE data, with non-institutional investors (NII) leading the demand at 62.75 times, and retail investors also showing strong interest at 10.44 times the available shares. The subscription window was open from February 7 to February 9, with the price band set between ₹295 and ₹311 per share, and the company successfully raising ₹180 crore from anchor investors prior to the public offering.
Allocations for the IPO were strategically divided among various investor groups, reserving up to 50% for Qualified Institutional Buyers (QIBs), at least 15% for NIIs, and a minimum of 35% for retail investors. Each lot consisted of 48 shares, purchasable in multiples thereof.
The funds raised from the IPO are earmarked for several key purposes, including the prepayment or repayment of existing debts, financing working capital requirements, and supporting general corporate activities, as detailed in the company’s Red Herring Prospectus (RHP). This strategic move is aimed at bolstering Rashi Peripherals’ financial health and fueling its growth ambitions in the tech distribution sector.
