Rashi Peripherals Limited IPO 2024

Mainboard IPO: Rashi Peripherals Limited IPO 2024

Rashi Peripherals Limited IPO 2024 is gearing up for its much-anticipated ₹600 crores initial public offering (IPO), scheduled to kick off on Wednesday, February 7, and wrap up by Friday, February 9. The company has fixed the IPO price range at ₹295 to ₹311 per equity share, with the issuance comprising solely fresh equity shares totalling 1.93 crore, each carrying a face value of ₹5. Notably, there won’t be any offer-for-sale component in this IPO.

This IPO, being a book-built issue, aims to raise ₹600 crores and involves the issuance of 1.93 crore fresh shares. Subscription for the Rashi Peripherals Limited IPO begins on February 7, 2024, and concludes on February 9, 2024. The allotment process is expected to be completed by Monday, February 12, 2024. Upon listing, the company’s shares will trade on both the BSE and NSE, with a tentative listing date set for Wednesday, February 14, 2024.

Investors eyeing a piece of Rashi Peripherals Limited IPO should note that the price band for the IPO ranges from ₹295 to ₹311 per share, with a minimum application lot size of 48 shares. For retail investors, the minimum investment stands at ₹14,928. Meanwhile, sophisticated non-institutional investors (sNII) need to invest a minimum of 14 lots (672 shares), amounting to ₹208,992, while for big non-institutional investors (bNII), the minimum lot size stands at 67 lots (3,216 shares), requiring an investment of ₹1,000,176.

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Rashi Peripherals Limited IPO 2024 Details with Offer

Rashi Peripherals Limited IPO 2024	TimeLine
Bid/ Offers Opens On	07-Feb-2024
Bid/ Offers Closes On	09-Feb-2024
Allotment On	12-Feb-2024
Initiation Refunds On	13-Feb-2024
Credit of Shares to Demat	13-Feb-2024
Listing On	14-Feb-2024
Cut-Off for Mandate Confirmation	09-Feb-2024
Total Issue Size Details	19,292,604 Shares
Issue Type	Equity
Issue Size (In Rs.)	600.00 Cr
Face Value (In Rs.)	5/- Per Share
Price Band (In Rs.)	295-311
Bid Lot Size	48 Shares
Issue Type	Book Built Issue IPO
Listing On	BSE, NSE
IPO Registrar	Link Intime India Pvt Ltd

How to Apply for the Rashi Peripherals Limited IPO 2024

Lot size is the minimum number of shares that the investor has to put in as part of the IPO application. The lot size only applies for the IPO and once it is listed then it can be even traded in multiples of 1 shares since it is a mainboard issue.

Investors in the IPO can only invest in minimum lot size and in multiples thereof. In the case of Rashi Peripherals Limited, the minimum lot size is 48 shares with upper band indicative value of ₹14,928. The table below captures the minimum and maximum lots sizes applicable for different categories of investors in the IPO of Rashi Peripherals Limited.

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IPO Details	Category	Lot	Share	Amount
Min Bid Lot	Retails	1	48	14,928
Max Bid Lot	Retails	13	624	1,94,064
Min Bid Lot	S-HNI	14	672	2,08,992
Max Bid Lot	S-HNI	66	3,168	9,85,248
Min Bid Lot	B-HNI	67	3,216	10,00,176

Rashi Peripherals Limited IPO Reservation

The Rashi Peripherals IPO is offering a total of 19,292,603 shares. Of these, 20.00% (3,858,521 shares) are allocated to Qualified Institutional Buyers (QIB), 15.00% (2,893,891 shares) to Non-Institutional Investors (NII), 35.00% (6,752,411 shares) to Retail Individual Investors (RII), and 30.00% (5,787,780 shares) to Anchor investors.

Within the RII category, 140,675 investors will receive a minimum allocation of 48 shares each. For sophisticated Non-Institutional Investors (sNII), 1,408 will receive a minimum allocation of 672 shares, while for big Non-Institutional Investors (bNII), 2,870 will receive the same minimum allocation of 672 shares each.

Expected GMP of Rashi Peripherals Limited IPO 2024 in Details

GMP	Estimate Listing Price (In Rs.)	As Per Date
85	396	08-02-2024
85	396	07-02-2024
79	390	06-02-2024
70	381	05-02-2024
85	396	04-02-2024
85	396	03-02-2024
63	374	02-02-2024
50	361	01-02-2024

About the Grey Market Premium of IPO

The grey market price (GMP) trading normally starts about 4-5 days prior to IPO opening and continues till the listing date. In the case of Rashi Peripherals Limited, we already have GMP data for the last 2 days, which should give a reasonable picture of the likely listing price of the IPO.

There are 2 factors that impact the GMP. Firstly, the market conditions have a deep impact on the GMP, especially the liquidity conditions in the market. Secondly, the extent of subscription for the IPO has a deep impact on the GMP as it is indicative of investor interest in the stock. GMP can also technically be negative, which means the stock would list at a discount to the issue price.

There is one small point to remember here. The GMP is not an official price point, just a popular informal price point. However, in most cases, it has been observed to be a good informal gauge of demand and supply for the IPO. Hence it does give a broad idea of how the listing is likely to be and how the post-listing performance of the stock would be.

Know Expected Profit as per GMP of Rashi Peripherals Limited IPO 2024

Details of Rashi Peripherals Limited IPO 2024	Profit Calculation As Per GMP (for 1 Lot)
Share/Quantity	48
Price	295-311
Total	14,928/-
GMP	85
Estimate Price	396
Est. Listing Percentage (%)	Around 27.00%
Estimate Profit	Around 4,000,/-
Result (Profit/Loss)	Profit
Recommendations	Apply

Rashi Peripherals Limited Financial Information

Profit and Loss (Figures in Rs. Crores)
Financial Condition	Mar-21	Mar-22	Mar-23
Sales +	5926.37	9313.44	9454.28
Expenses +	5714.81	9016.71	9201.33
Operating Profit	211.56	296.73	252.95
Other Income +	4.28	8.48	14.67
Interest	30.44	53.68	86.32
Depreciation	4.39	11.69	16.67
Profit before tax	181.04	239.84	164.63
Tax %	43.65	57.33	41.28
Net Profit +	129.95	182.07	123.25
RATIO:
OPM %	3.57%	3.19%	2.68%
Dividend Payout	0.08%	0.00%	0.00%

Balance Sheet of Rashi Peripherals Limited IPO 2024

Company’s Report (Figures in Rs. Crores)	Mar-19	Mar-20	Sep-21
Equity Share Capital	0.99	0.99	0.99
Reserves	194.62	235.49	365.44
Borrowings +	369.73	325.32	488.99
Other Liabilities +	401.25	477.08	672.32
Total Liabilities	966.59	1038.88	1527.74
Fixed Assets +	23.93	21.39	31.84
CWIP	0	0.77	3.16
Investments	13.40	13.40	0
Other Assets +	929.26	1003.32	1492.74
Total Assets	966.59	1038.88	1527.74
Return on Equity	15%	17%	35%

Rashi Peripherals Limited IPO Peer Groups

Rashi Peripherals Limited IPO Registrar

Link Intime India Private Ltd
Phone: + 91-22-4918 6270
Email: rptechindia.ipo@linkintime.co.in
Website: Click Here

About Rashi Peripherals Limited

Incorporated in 1989, Rashi Peripherals Limited is a company that distributes global technology brands in India. They specialize in products related to ICT or Information and Communication Technology. The company’s service offerings include value-added services such as pre-sales, technical support, marketing services, credit solutions and warranty management services.

The company has two business verticals:

Personal computing, enterprise and cloud solutions (PES): This includes personal computing devices, enterprise solutions, embedded designs/products and cloud computing.

Lifestyle and IT essentials (LIT): This includes the distribution of products such as (i) components such as graphics cards, central processing units (CPUs) and motherboards; (ii) storage and memory devices; (iii) lifestyle peripherals and accessories such as keyboards, mice, webcams, monitors, wearables, casting devices, fitness trackers and gaming accessories; (iv) power devices such as UPS and inverters; and (v) networking and mobility devices.

The company’s clients include ASUS Global Pte. Ltd., Dell International Services India Private Limited, HP India Sales Private Limited, Lenovo India Private Limited, Logitech Asia Pacific Limited, NVIDIA Corporation, Intel Americas, Inc., Western Digital (UK) Limited, Schneider Electric IT Business India Private Limited, Eaton Power Quality Private Limited, ECS Industrial Computer Co. Ltd., Belkin Asia Pacific Limited, TPV Technology India Pvt Ltd., LG Electronics India Private Limited, and Toshiba Electronic Components Taiwan Corporation, among others.

As of September 30, 2023, Rashi Peripherals is the national distributor for 52 global technology brands and has 50 branches, and 63 warehouses across India, with 8657 distributors across 680 locations in 28 States and Union Territories in India.

As at September 30, 2023, the company had 1,433 employees, including 549 employees in the sales and marketing team and 64 employees in the technical support team.

About Initial Public Offerings (IPO)

The Capital market represents the “Primary Market” and the “Secondary Market. The capital market has two interdependent and inseparable segments, the new issuers (the primary market) and stock (secondary) market. The primary market is used by issuers for raising fresh capital from the investors by making initial public offers or rights issues or offers for sale of equity or debt. An active secondary market promotes the growth of the primary market and capital formation, since the investors in the primary market are assured of a continuous market where they have an option to liquidate their investments.

A corporate may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. It is the largest source of funds with long or indefinite maturity for the company.

An IPO is an important step in the growth of a business. It provides a company access to funds through the public capital market. An IPO also greatly increases the credibility and publicity that a business receives. In many cases, an IPO is the only way to finance quick growth and expansion. In terms of the economy, when a large number of IPOs are issued, it is a sign of a healthy stock market and economy.

When the company makes its first IPO to the public, the relationship is directly between the company and investors, and the money flows to the Company as its “Share Capital”. Shareholders thus become owners of the Company through their participation in the Company’s IPO and have ownership rights over the company. This is the largest source of funds for a company, which enables the company to create “Fixed Assets” which will be employed in the course of the business. The shareholders of the Company are free to exit their investment through the secondary market.

What is Book Building?

SEBI guidelines defines Book Building as “a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built-up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memorandum or offer document”.

Book Building is basically a process used in Initial Public Offer (IPO) for efficient price discovery. It is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The offer price is determined after the bid closing date.

Difference between Book Building Issue and Fixed Price Issue

In Book Building securities are offered at prices above or equal to the floor prices, whereas securities are offered at a fixed price in case of a public issue. In case of Book Building, the demand can be known everyday as the book is built. But in case of the public issue the demand is known at the close of the issue.