Rashi Peripherals Lists at 9% Premium at Rs 339 per share

Rashi Peripherals Limited is a company that distributes global technology brands in India. They specialise in products related to ICT or Information and Communication Technology, debuted on the Indian stock market today.

Upon its debut on the BSE, the stock opened at Rs 335 per share, reflecting an impressive 7.7% premium compared to the final issue price of Rs 311 per share. The market capitalisation of the company stands at Rs 2182 crore on the BSE. Meanwhile, on the NSE, the stock debuted at Rs 339.50 per share, representing an impressive premium of 9.16% compared to its final issue price.

IPO Proceeds:

The Net Proceeds received from the fresh issue will be used to repay/prepay outstanding borrowings, fund the working capital requirement of the company, and for general corporate purposes.

Company profile:

Rashi Peripherals Limited is a company that distributes global technology brands in India. They specialise in products related to ICT or Information and Communication Technology. The company’s service offerings include value-added services such as pre-sales, technical support, marketing services, credit solutions, and warranty management services.

The company has two business verticals: Personal computing, enterprise, and cloud solutions (PES): This includes personal computing devices, enterprise solutions, embedded designs/products, and cloud computing.

Lifestyle and IT essentials (LIT): This includes the distribution of products such as (i) components such as graphics cards, central processing units (CPUs) and motherboards; (ii) storage and memory devices; (iii) lifestyle peripherals and accessories such as keyboards, mice, webcams, monitors, wearables, casting devices, fitness trackers and gaming accessories; (iv) power devices such as UPS and inverters; and (v) networking and mobility devices.

Subscription details:

On February 09, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 62.95 times. The public issue received remarkable interest, with the retail category being subscribed 11.01 times, while the QIB and NII categories reached a subscription rate of 151.45 and 66.15 times respectively.

The IPO price band was between Rs 295 and Rs 311, with a face value of Rs 5 per share and a lot size of 48 shares. The total size of the company’s IPO was Rs 600 crore, and the final share issue price was fixed at Rs 311 each.

Financial Performance:

Conclusion: 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have earned an impressive 9% return over its final issue price on the listing day itself. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.