Rashi Peripherals IPO opens tomorrow: GMP, issue details, 10 key things to know before subscribing to ₹600-crore issue

Rashi Peripherals IPO opens for subscription on tomorrow (Wednesday, February 7). In India, Rashi Peripherals Limited has been distributing information and communications technology (ICT) for over 34 years. In addition, the firm is among the national distributors of international technology companies with the quickest rate of growth in India.

According to the company's Red Herring Prospectus (RHP), Rashi Peripherals Limited sets itself apart by providing end-to-end services including pre-sale activities, solutions design, technical support, marketing services, credit solutions, and warranty management services.

Also Read: Rashi Peripherals IPO: From financials to key risks, here are 10 must-know points from RHP

As of September 30, 2023, the company's pan-India distribution network consists of 63 warehouses, 50 branches that serve as both service centres and sales locations. By September 30, 2023, the firm will have 680 sites in India covered by its branches and warehouses. They are a nationwide distribution partner for fifty-two international technology businesses as of September 30, 2023.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

Rashi IPO floor price is 59 times the face value of the equity shares and the cap price is 62.20 times the face value of the equity shares. The price/earnings ratio based on diluted EPS for fiscal 2023 at the floor price is 10 times and at the cap price is 10.54 times. 

Also Read: Rashi Peripherals IPO: Madhu Kela wife-backed firm sets IPO price band at ₹295-311; issue to open on February 7

Keshav Krishna Kumar Choudhary, Chaman Pansari, Suresh M Pansari HUF, Suresh Kumar Pansari, Kapal Suresh Pansari, and Krishna Kumar Choudhary (HUF) are the company's promoters. 

As per the RHP, the company's listed peer is Redington India Limited (with a P/E of 9.92).

Between March 31, 2022, and March 31, 2023, Rashi Peripherals Limited's profit after tax (PAT) decreased by 32.42% while its revenue climbed by 1.58%.

Here are the 10 key things to know about Rashi Peripherals IPO:

Rashi Peripherals IPO date: Rashi Peripherals IPO opens for subscription on Wednesday, February 07, and closes on Friday, February 09.

Rashi Peripherals IPO price band: Rashi IPO price band has been fixed in the range of ₹295 to ₹311 per equity share of face value of ₹5.

Rashi IPO lot size: Rashi Peripherals IPO lot size is 48 equity shares and in multiples of 48 equity shares thereafter.

Anchor investors: The allocation to anchor investors for Rashi Peripherals IPO is scheduled to take place today (Tuesday, February 06).

Rashi Peripherals IPO details: Rashi Peripherals IPO, which is worth ₹600 crore, is completely a fresh issue of 1.93 crore equity share; there is no offer for sale (OFS) component, according to Red Herring Prospectus (RHP).

In its pre-IPO placement, ace investor Madhusudan Kela’s wife Madhuri Madhusudan Kela invested ₹50 crore and Volrado Venture Partners Fund-III-BETA invested ₹100 crore. The investors were allotted a total of 48.23 lakh equity shares at an issue price of ₹311 apiece.

Rashi Peripherals IPO objective: The company intends to use the net proceeds of the offer to finance the following goals: prepayment or scheduled repayment of all or a portion of the company's existing borrowings; financing the company's working capital needs as well as general corporate purposes. 

Also Read: Rashi Peripherals IPO: Madhuri Madhusudan Kela, Volrado Venture acquire ₹150 crore worth shares ahead of IPO

Rashi Peripherals IPO listing date and allotment details: Tentatively, Rashi Peripherals IPO basis of allotment of shares will be finalised on Monday, February 12 and the company will initiate refunds on the same day, while the shares will be credited to the demat account of allottees on Tuesday, February 13. Rashi Peripherals IPO shares are likely to be listed on BSE and NSE on Wednesday, February 14.

Lead Manager and Registrar of Rashi Peripherals IPO: The registrar for the Rashi Peripherals IPO is Link Intime India Private Ltd, while the book running lead managers are JM Financial Limited and ICICI Securities Limited.

Rashi IPO reservation: Rashi Peripherals IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

Rashi Peripherals IPO GMP today: Rashi IPO GMP or grey market premium is +70. This indicates Rashi Peripherals share price were trading at a premium of ₹70 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Rashi Peripherals share price was indicated at ₹381 apiece, which is 22.51% higher than the IPO price of ₹311.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Rashi Peripherals to raise ₹750 crore in IPO

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.