Rashi Peripherals Limited is launching its IPO. The IPO opens for subscription on February 07, 2024, and will close on 9th February 2024.
What does Rashi Peripherals Limited do?
Incorporated in 1989, Rashi Peripherals Limited is a distributor of global technology brands in India, specializing in Information and Communication Technology (ICT) products. The company provides a comprehensive suite of services including pre-sale activities, solutions design, technical support, marketing services, credit solutions, and warranty management services.
The company operates through two primary business verticals:
Personal Computing, Enterprise and Cloud Solutions (PES):
- Distributes personal computing devices.
- Offers enterprise solutions.
- Supplies embedded designs/products.
- Provides cloud computing services.
Lifestyle and IT Essentials (LIT):
- Handles distribution of components such as graphics cards, central processing units (CPUs), and motherboards.
- Manages storage and memory devices.
- Distributes lifestyle peripherals and accessories, including keyboards, mice, web cameras, monitors, wearables, casting devices, fitness trackers, and gaming accessories.
- Supplies power equipment like UPS and inverters.
- Offers networking and mobility devices.
What is the issue size of Rashi Peripherals Limited Limited IPO?
The public offering is a book-built issue valued at Rs 600 crores, consisting entirely of a fresh issue of 1,92,92,604 shares.
Financials of Rashi Peripherals Limited Limited IPO
| Financial Year | Total Assets (₹ crores) | Total Revenue (₹ crores) | Profit After Tax (₹ crores) | EPS | EBITDA (₹ crores) |
|---|---|---|---|---|---|
| March 31, 2021 | 1,594.39 | 5,931.73 | 136.35 | 31.20 | 215.22 |
| March 31, 2022 | 2,670.15 | 9,321.92 | 182.51 | 43.57 | 305.21 |
| March 31, 2023 | 2,798.59 | 9,468.94 | 123.34 | 29.50 | 267.61 |
| September 30, 2023 | 4,058.63 | 5,473.26 | 72.02 | 18.24 | 165.66 |
Risk factors to consider:
Vendor Dependency: The company heavily relies on global technology brands for revenue, with approximately 82-83% of revenue coming from them in recent years. Any supply delays or failures from these brands could significantly harm the company’s business and reputation.
Brand Maintenance: The success of the business depends on global technology brands effectively promoting and maintaining their brand reputation and consistently delivering high-quality products. Any issues with these brands could impact the company’s operations.
Low Gross Margins: The company operates with low gross margins, which means that even small fluctuations in revenue, operating costs, bad debts, or interest expenses can have a magnified impact on its overall operating results.
Online Marketplace Dependency: The company’s operations are closely tied to certain online marketplaces. Disruptions or changes in the business practices of these marketplaces could adversely affect the company’s operations and financial condition.
Negative Cash Flows: Historically, the company has experienced negative cash flows, which could limit its ability to operate and implement growth plans in the future. Managing cash flow effectively is crucial.
Competition Pressure: The information and communications technology product distribution industry is becoming increasingly competitive. This heightened competition may exert pressures that negatively affect the company’s business prospects.
Brand Reputation: Maintaining and enhancing the reputation of the company’s brand name is critical to its success. Failing to do so may impact its relationships with both brands and customers.
Import-Export Risks: The company generates a significant portion of its revenue from products manufactured by global technology brands that are imported into India. Managing risks associated with import and export activities is essential to maintaining revenue stability.
Vertical Revenue Dependency: The company’s sales revenue is reliant on two main verticals: lifestyle and IT essentials, and personal computing. Any sudden decrease in revenues from either of these verticals may negatively affect profitability.
Credit Exposure: The company has substantial credit exposure to channel partners and customers. Adverse trends in their businesses could result in significant credit losses, impacting cash flow and liquidity.
Schedule/Timeline of Rashi Peripherals Limited Limited IPO
| Issue Period | February 07, 2024, to February 09th, 2024 |
|---|---|
| Price band | ₹ 295 -311 |
| Minimum Bid quantity | 48 & Multiples thereof |
| Deadline for accepting UPI mandate | 5:00 PM on the issue Closing Date. |
| Finalization of Allotment | February 12, 2024 - Monday |
| Initiation of Refunds | February 13, 2024 - Tuesday |
| Credit of Shares | February 13, 2024 - Tuesday |
| Date of Listing | February 14, 2024 - Wednesday |
| Mandate end date | February 24, 2024 - Saturday |
| Anchor Investors Lock-In End Date | |
| (50% of the Investment) | March 13, 2024 - Wednesday |
| Anchor Investors Lock-In End Date | |
| (Remaining of the Investment) | May 13, 2024 - Monday |
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
How to apply for the Rashi Peripherals Limited Limited IPO?
You can apply for Rashi Peripherals Limited Limited IPO using any supported UPI app by following two steps:
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Enter your bid on Kite
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Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status of the Rashi Peripherals Limited Limited IPO?
You can check the allotment status for the Rashi Peripherals Limited Limited IPO on the website of the Registrar and Transfer Agent. Alternatively, you can also check the allotment status on the NSE website.