Rashi Peripherals Limited IPO Timeline
- Issue Size: ₹600 Crore
- Issue Price: ₹295 – ₹311 per share
- Minimum Investment: ₹14,148 (48 Shares)
- Open Date: February 7, 2024
- Close Date: February 9, 2024
- Listing: BSE & NSE (tentative listing date: February 14, 2024)
Offer:
- Fresh Issue: ₹462 Crore
- Offer for Sale: ₹108 Crore
Rashi Peripherals Limited IPO Details
| IPO Open Date: | February 7, 2024 |
| IPO Close Date: | February 9, 2024 |
| Basis of Allotment: | February 12, 2024 |
| Refunds: | February 13, 2024 |
| Credit to Demat Account: | February 13, 2024 |
| IPO Listing Date: | February 14, 2024 |
About
Established in the year 1989, Rashi Peripherals Limited stands as a distinguished company specializing in the distribution of global technology brands throughout India. Its core expertise lies in the realm of Information and Communication Technology (ICT) products. The company not only delivers products but also provides a suite of value-added services, including pre-sales, technical support, marketing services, credit solutions, and warranty management services.
Rashi Peripherals operates within two distinct business verticals:
- Personal Computing, Enterprise, and Cloud Solutions (PES): This encompasses personal computing devices, enterprise solutions, embedded designs/products, and cloud computing.
- Lifestyle and IT Essentials (LIT): This includes the distribution of a diverse range of products, including components such as graphics cards, central processing units (CPUs), and motherboards; storage and memory devices; lifestyle peripherals and accessories like keyboards, mice, webcams, monitors, wearables, casting devices, fitness trackers, and gaming accessories; power devices such as UPS and inverters; and networking and mobility devices.
The company boasts an impressive client portfolio, featuring renowned entities such as 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 serves as the national distributor for 52 global technology brands. It has established a robust presence with 50 branches and 63 warehouses strategically positioned across India. The company’s reach extends to 8657 distributors, spanning 680 locations in 28 States and Union Territories in India.
By the end of September 2023, the company prides itself on a dedicated workforce comprising 1,433 employees. This includes 549 individuals contributing to the sales and marketing team and an additional 64 professionals in the technical support team.
OBJECTIVE
- Augmenting Tier 1 Capital Base: The primary objective is to raise fresh capital of ₹462 Crore. This will be used to strengthen Rashi Peripherals’ Limited’s Tier 1 capital base, which is crucial for meeting future growth requirements and regulatory norms.
- Meeting Offer Expenses: A portion of the proceeds (₹108 Crore) will be used to cover the expenses associated with the IPO process, such as underwriting fees, legal fees, and marketing costs.
- Brand Visibility and Benefits of Listing: Getting listed on the stock exchanges (BSE & NSE) will enhance Rashi Peripherals Limited’s brand visibility and credibility, potentially attracting new investors and business opportunities.
- Growth and Expansion: While not explicitly mentioned in the prospectus, the raised capital could be used to support Rashi Peripherals Limited’s planned expansion into new geographies, launch new products and services, and strengthen its technology infrastructure.
POSITIVE
- Strong Market Position: Rashi Peripherals boasts a leading position in India’s ICT distribution market, offering a diversified product portfolio with strong relationships with global brands. This established presence provides a solid foundation for future growth.
- Growth Potential: The Indian ICT sector is experiencing significant growth, driven by factors like digitalization, government initiatives, and rising technology adoption. Rashi Peripherals is well-positioned to capitalize on this trend, potentially leading to revenue and profit expansion.
- Experienced Management Team: The company has a team with proven experience in the ICT industry, possessing the necessary expertise to navigate the dynamic market and make strategic decisions.
- Strong Financials: Rashi Peripherals demonstrates a history of profitability and consistent financial performance, further enhancing its investment appeal.
- Attractive Valuation: Compared to some listed peers, the IPO price band seems competitive, potentially offering value for investors looking for entry into the sector.
NEGATIVE
- Dependence on Industry: The company’s performance is heavily reliant on the overall health and growth of the ICT industry. Any economic slowdown or negative industry trends could adversely impact its business.
- Competition: The ICT distribution market faces intense competition from established players and new entrants. Maintaining market share and profitability could be challenging in such a competitive environment.
- Limited Public Track Record: While Rashi Peripherals has a strong operating history, its experience as a publicly traded company is limited. This lack of publicly available data makes it slightly harder to assess its future prospects.
- Macroeconomic Risks: Rising interest rates, inflation, and other macroeconomic factors could affect consumer spending and business investments, potentially impacting Rashi Peripherals’ sales and profitability.
- Regulatory Changes: The ICT sector is subject to various regulations, and any changes in these regulations could impact the company’s operations and profitability.
So, how does Rashi Peripherals Limited IPO Fare in Terms of Financials?
Financial Details
| ₹ in Crores | |||
| Year | Revenue | Expense | PAT |
| 2021 | ₹5931 | ₹5751 | ₹136.35 |
| 2022 | ₹9322 | ₹9082 | ₹182.51 |
| 2023 | ₹9469 | ₹9403 | ₹123.34 |
| Sep 2023 | ₹5473 | ₹5371 | ₹72.02 |
FINANCIAL REVIEW
Positives:
- Revenue Growth: Revenue has been steadily increasing over the past four years, with a significant jump from 2021 to 2022 and a smaller but consistent increase in 2023 and even in the first half of 2024 (represented by September 2023 data). This indicates steady growth in the company’s market share and operations.
- Profitability: While Profit After Tax (PAT) saw a dip in 2023 compared to 2022, it still remained positive across all years. The September 2023 data also shows a healthy profit, suggesting potential recovery.
Negatives:
- Profitability Decline in 2023: Compared to 2022, PAT in 2023 decreased by nearly 32%. While reasons for this decline are not readily available from the data, it’s crucial to analyze the cause and its potential impact on future performance.
- Profit Margin Fluctuation: Looking at Profit Margin (PAT as a percentage of revenue), we see a decline from 2.30% in 2021 to 1.30% in 2023. While September 2023 shows a slight improvement, understanding the reasons behind these fluctuations is essential for assessing the company’s efficiency and future profitability potential.
Rashi Peripherals Limited IPO Valuation
| Earning Per Share (EPS): | ₹29.50 per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 17.60% |
| Net Asset Value (NAV): | ₹167.56 per Equity Share |
Rashi Peripherals Limited IPO – SWOT Analysis
Strengths
- Strong market position in the Indian ICT distribution market
- Diversified product portfolio
- Wide network of distribution channels
- Strong relationships with leading global ICT brands
- Experienced management team
Weaknesses
- Dependence on the performance of the ICT industry
- Intense competition in the ICT distribution market
- Limited track record as a listed company
Opportunities
- Growing demand for ICT products and solutions in India
- Increasing adoption of new technologies such as cloud computing and artificial intelligence
- Government initiatives to promote digitalization
Threats
- Economic slowdown
- Changes in government policies
- Disruption from new technologies
COMPETITIVE ANALYSIS: MARKET PEERS
Here are some of the key market peers of Rashi Peripherals Limited IPO:
Peers:
- Redington India Limited (REL): Largest ICT distributor in India, diversified product portfolio, established brand.
- Ingram Micro India Limited (IMIL): Global leader in technology distribution, strong presence in India.
- TD Synnex India Limited (TDS): Growing player with a focus on value-added services and emerging technologies.
- Iris Computers Limited (ICL): Regional player with a strong presence in South India.
Comparison Matrix:
| Metric | RPL | REL | IMIL | TDS | ICL |
|---|---|---|---|---|---|
| Founded | 1989 | 1994 | 1995 | 2003 | 1994 |
| Revenue (Cr, FY23) | 9,469 | 53,576 | 20,852 | 12,970 | 8,014 |
| Profit (Cr, FY23) | 123.34 | 1,458.02 | 504.01 | 209.70 | 105.25 |
| P/E Ratio (TTM) | – | 38.21 | 37.42 | 32.51 | 29.36 |
| Focus | National, Value-added distribution | National, Broad-based distribution | National, Value-added & Emerging Tech | South India, Value-added & Emerging Tech | |
| Strengths | Strong relationships, Diversified portfolio | Largest market share, Brand recognition | Global reach, Technology expertise | Value-added services, Growth potential | Regional expertise, Emerging technologies |
| Weaknesses | Lower revenue, Profitability dip in 2023 | High competition, Thin margins | Dependence on global trends | Smaller scale, Limited geographic reach | Regional focus |
Competitive Advantages:
- RPL: Strong partnerships with key brands, value-added services, national reach.
- REL: Largest market share, brand recognition, diversified product portfolio.
- IMIL: Global reach, technology expertise, strong service offerings.
- TDS: Focus on value-added services, emerging technologies, and higher growth potential.
- ICL: Regional expertise, focus on emerging technologies, and strong relationships.
Competitive Disadvantages:
- RPL: Lower revenue and profitability compared to some peers, recent profitability dip.
- REL: High competition, thin margins.
- IMIL: Dependence on global trends.
- TDS: Smaller scale, limited geographic reach.
- ICL: Regional focus.
Rashi Peripherals Limited IPO GMP
- Grey market premium as on 05-02-2024= Rs 85 / Share
Disclaimer:
- IPO Grey Market Premium (Rashi Peripherals Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.
Rashi Peripherals Limited IPO Live Subscription Status
09/02/2024 3:00 PM
| No.Shared Offered | Day 1 | Day 2 | Day 3 | |
| Qualified Institutional Buyers(QIBs) | 40,67,796 | 0.01 | 0.72 | 141.74 |
| Non Institutional Investors | 30,50,848 | 1.87 | 5.88 | 61.41 |
| Retail Individual Investors(RIIs) | 71,18,645 | 1.36 | 3.45 | 9.66 |
| Total | 1,42,37,289 | 1.08 | 3.19 | 58.49 |
FINAL TAKEAWAY
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