Rashi Peripherals IPO Review

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OBJECTIVE OF THE IPO

  • Prepayment and Partial Scheduled patment of outstanding borrowings availed by the company; 326.00
  • Core working capital requirements of the company 220 Cr
  • General Corporate Purposes of Company

Rashi Peripherals Ltd is B2B distributor for 52 technology Products with a coverage via and operates 50 branches distributed via 63 warehouses, and network of 8657 distributors. They cover 28 States and UT across India .

Quick Review and Suggestion

  • Pan India ICT product distributor in India.
  • Sales Number is Growing for Past Manay years
  • Higher Top Line and Lower Bottom Line
  • Predication F24 Looks Very strong
  • On Analysis of FY24 annualised earnings, IPO Looks Fully priced. 
  • Invest for Medium to long term rewards. 

Rashi Promoter Holding

Share Holding Pre Issue 89.65%

Share Holding Post Issue 63.41%

Investors Sectionshares in IPO Launch
Reservation for EmployeesZERO employee quota
Anchor AllocationFROM QIB Portion
QIB NUMBER96,46,302 shares (50% NET IPO size)
NII (HNI) NUMBER28,93,891 shares (15% NET IPO size))
Retail NUMBER67,52,411 shares (35% NET IPO size))
Total Shares 1,92,92,604 shares (100.00% of IPO size)

Financial Figure of Rashi Peripherals Ltd

ParticularsFinancial Year 2023Financial Year 2022Financial Year 2021
Net Rev(₹ in crore)9,454.289,313.445,925.05
Sales Growth Number (%)1.51%57.19% 
PAT (₹ in crore)123.25182.07130.38
PAT Margins Percentage (%)1.30%1.95%2.20%
Equity (₹ in cr)700.19575.14394.26
Assets Size (₹ in cr)2,798.602,670.161,594.39
ROE (%)17.60%31.66%33.07%
ROA (%)4.40%6.82%8.18%
Asset Turnover Ratio (X)3.383.493.72
EPS (₹)29.5043.5731.20

Strengths &Risks

  1. Pan India Distributor
  2. + Multichannel Sales
  3. Has many Brands under its umbrella
  4. Failure on the vendor’s to keep up the supply products
  5. Brands Performance New Brands entry will dent current sales
  6. Online Sales may impact Growth

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