Rashi Peripherals IPO

Rashi Peripherals Limited

₹14,160 /48 sharesMinimum Investment

Rashi Peripherals IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
BSE & NSE₹311.00₹335.00₹24.00 (7.72%)

Rashi Peripherals IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
7 Feb ‘24 - 9 Feb ‘24₹14,16048₹295 - ₹311
Issue SizeIPO Doc
600.00Cr
RHP PDF

Subscription Status As on Invalid Date

  • Qualified Institutional Buyers
    143.66x
  • Non-Institutional Investor
    62.75x
  • Retail Individual Investor
    10.44x
  • Total
    59.71x

About Rashi Peripherals

Rashi Peripherals is a distribution partner for global technology brands in India, specialising in information and communications technology ("ICT") products. The company distributes ICT products and initially began its operations by manufacturing peripherals. Rashi Peripherals operates primarily in two business verticals. The first vertical is- Personal computing, enterprise, and cloud solutions ("PES"), which distributes personal computing devices, enterprise solutions, embedded designs/products, and cloud computing services. Under the second vertical- Lifestyle and IT Essentials ("LIT"), the company distributes a range of products, including components like graphic cards, CPUs, motherboards, storage and memory devices, lifestyle peripherals, power equipment, and networking and mobility devices. The company also offers end-to-end services, including pre-sale activities, solutions design, technical support, marketing services, credit solutions, and warranty management services.;
Parent Organisation
Rashi Peripherals Limited
Founded
1989
Managing Director
Mr. Kapal Suresh Pansar

Strengths & Risks

  • The company ranks among India's fastest-growing national distribution partners based on revenue. Its revenue from operations exhibited a CAGR of 26.32%, increasing from Rs. 5925.05 crores in 2021 to Rs. 9,454.28 crores in 2023, with revenues reaching Rs. 5,468.51 crores in the six months ending September 30, 2023. Rashi Peripherals has demonstrated consistent financial performance through increase in revenue from operations and profitability.
  • Rashi Peripherals commands significant market share in various product categories in India, including processors (45%), graphics cards (47%), pen drives (42%), hard drives (29%), keyboards and mice (21%), monitors (27%), UPS (13%), laptops (10%), desktops (10%), routers (33%), and switches (10%) as of 2023.
  • The company has a well-established distribution network for ICT products. It operates in 50 cities, with branches serving as sales and service centers and warehouses, covering 680 locations across 28 States and Union Territories. The network engages with an ecosystem of 8,407 customers.
  • Rashi Peripherals serves as a key distributor for ICT products. As of September 30, 2023, the company has collaborated with 52 global technology brands.
  • Rashi Peripherals has distributed 311.89 million units from global technology brands between 2002 and 2023. The product range spans lifestyle, components, networking, personal computing, storage and memory, mobility, enterprise, and embedded solutions.
  • Rashi Peripherals facilitates financial arrangements with banks or non-banking financial companies, enabling customers to access funds for effective working capital management.
  • Rashi Peripherals relies on various global technology brands for its product distribution, with revenues from the top eight brands contributing around 82-83% to its overall revenue in 2021-2023. Delays or failures in product supply from these brands could have a significant negative impact on the company's business.
  • The success of Rashi Peripherals is closely tied to the effective maintenance, promotion, and development of brands by global technology partners. The company also depends on these partners for the consistent quality of products, including the timely launch of new information and communications technology products.
  • Rashi Peripherals faces challenges with low gross margins, making it susceptible to variations in revenue, operating costs, bad debts, and interest expenses, which can directly influence its operating results.
  • A substantial portion of the company's revenue comes from importing products that are manufactured by global technology brands. Managing risks associated with import and export activities is crucial, as any lapses could impact the business and revenue.
  • Rashi Peripherals heavily relies on revenue from its lifestyle and IT essentials vertical and the Personal Computing, Enterprise, and Cloud Solutions vertical. A sudden decline in revenues from these segments could negatively affect the company's financial condition and profitability.
  • As of September 30, 2023, the company has contingent liabilities amounting to Rs. 592.76 crores, which have not been provided for. These could adversely affect its financial condition.
  • Rashi Peripherals faces significant credit exposure to Channel Partners and other customers. Negative trends in their businesses could lead to substantial credit losses, negatively impacting the company's cash flow and liquidity.
  • The company is involved in 85 tax litigation matters, with an aggregate amount of Rs. 408.73 crores, which may adversely affect its operations results and financial condition.
  • ZNet Technologies Private Limited, a subsidiary, has incurred losses after tax in the last three fiscal years and the six months ended September 30, 2022, and September 30, 2023.
  • Rashi Peripherals has incurred indebtedness, and non-compliance with repayment and other covenants in financing agreements could adversely affect its business and financial condition. As of November 30, 2023, the total outstanding consolidated financial indebtedness is Rs. 1,569.37 crores.
  • The company has availed unsecured loans of Rs. 46.68 crores, which may be recalled by lenders. Failure to service these loans or fulfil obligations under financing agreements may lead to accelerated payments, adversely affecting the company.

Financials

*All values are in Rs. Cr
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Application details

Apply asPrice bandApply upto
Regular295 - 311₹2 Lakh
High Networth Individual295 - 311₹2 - 5 Lakh
For Rashi Peripherals IPO, eligible investors can apply as Regular.
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