Rashi Peripherals IPO has garnered substantial attention in the financial market, with a 61% subscription on the first day. The first day of the bidding process had a mixed response from investors in all categories regarding Rashi Peripherals’ initial public offering (IPO). The issue did not have a lot of bidders on the first day of the auction.
About Rashi Peripherals
Since its founding in 1989, Mumbai-based Rashi Peripherals has been a pillar in the Indian market for distribution of international technology companies. Their area of expertise is information and communication technology (ICT) goods. A value-added range of services, including pre-sales, technical support, marketing, credit solutions, and warranty management, are provided by the company.
IPO Details
The IPO, currently in its bidding phase, offers shares in the price band of Rs 295-311, with a lot size of 48 shares. The fresh sale comprises up to 19,292,604 equity shares, aiming to raise Rs 310.93 crore. As of the latest data, 61% of the issue has been subscribed, with bids for 86,52,144 equity shares.
Investor Response
While retail investors show strong interest with a 91% subscription, non-institutional investors follow closely at 72%. Interestingly, qualified institutional bidders (QIBs) are yet to make bids. The market’s measured optimism is reflected in this nuanced response.
Financial Performance and Projections
Brokerage firms highlight Rashi Peripherals’ positive financial performance, citing experience management, market leadership, and a CAGR of 26.3% in revenue from FY21 to FY23. Negative cash flows, increased competition, and reliance on imports are among the difficulties that need to be carefully considered.
Anchor Investments and IPO Allocation
Ahead of the IPO, Rashi Peripherals secured Rs 180 crore via anchor investors, allocating 50% to QIBs, 15% to non-institutional investors, and 35% to retail investors. Ventura Securities recommends subscribing, emphasizing increased wallet share, government initiatives, and optimized logistics.
Important Suggestions
Investors should carefully consider the benefits of the IPO in relation to the risks, even though it offers an alluring investment opportunity. Although prospective growth drivers are highlighted by Ventura Securities’ suggestion to subscribe, careful due diligence is required due to the risks associated with negative cash flows and import dependency.
Book Running Lead Managers and Listing Details
ICICI Securities and JM Financial spearhead the IPO as the book running lead managers, with Link Intime India serving as the registrar. The proposed listing date for Rashi Peripherals shares on both BSE and NSE is February 14.