Rashi Peripherals to launch IPO worth Rs.750 crore. Files papers for SEBI nod

Rashi Peripherals Rs.750 crore IPO

Rashi Peripherals

A leading name in distributing IT and communications products, Rashi Peripherals, is eyeing the IPO route to go public. The company has filed its draft red herring prospectus with SEBI (Securities and Exchange Board of India) to seek its approval for launching the IPO.

While the regulator issues its approvals, here’s a look into the IPO details.

Rashi Peripherals IPO

Rashi Peripherals aims to raise Rs.750 crores through the IPO (Initial Public Offering). Further details about the issue are as follows –

  • The IPO consists of a fresh issue of equity shares valuing Rs.750 crores.
  • Rs.400 crores raised through the IPO will be used for debt repayment, Rs.200 crores for working capital needs and Rs.50 crores for general corporate uses.
  • The company is also eyeing funding of Rs.150 crores through private placement. If the funding is successful, it will reduce the IPO size.
  • ICICI Securities and JM Financial are the IPO’s lead managers.

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About Rashi Peripherals

Rashi Peripherals is engaged in IT and has delivered a stable performance over the years. It was established in 1989 by Sureshkumar Pansari and Krishna Kumar Choudhary.

Here’s a look at some of the company details –

  • As of September 2022, Rashi Peripherals had an outstanding debt valuing more than Rs.1000 crores.
  • For the financial year ending on March 2022, the company delivered a 34% annual growth in its consolidated net profit, which was recorded at Rs.182.5 crores.
  • For the financial year 2021-22, the company’s revenue from operations jumped 57.2% and amounted to Rs.9313.4 crores.
  • After the first six months of the financial year 2022-23, the profit was recorded at Rs.67.37 crores, and the revenue was reported at Rs.5023.8 crores.
  • As of September 2022, Rashi Peripherals had 62 warehouses and 50 branches across 730 locations.
  • The company operates through two main verticals. The first is the PES (personal computing, enterprise and cloud solutions) Vertical, wherein the company is a product distributor. The second is the lifestyle and IT essentials vertical, where the company distributes motherboards and CPUs, graphic cards, memory and storage devices, lifestyle accessories and peripherals, mobility devices, power equipment and networking devices.

The draft red herring prospectus also mentioned that the ICT products market is expected to grow at 14% CAGR globally. By 2025, this market was expected to surpass the $350 billion mark in sales. In India, IT spending is expected to grow at 10% CAGR and reach $145 billion by 2025.

While the IPO hits the market, you can assess the company and determine whether or not to subscribe to it when it launches.

Related - Read this to find out what is confidential IPO filing

Check out this video for profitable strategies to invest in an IPO. 

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