Earlier today, Rashi Peripherals IPO stock held a 13 percent premium in the grey market. Upon listing on February 14, the stock opened at a 9 percent premium over the IPO price, at Rs 339.5 on the NSE and Rs 335 on the BSE, missing analyst expectations of a double-digit premium from its issue price of Rs 311.
The company witnessed strong performance in FY21 and FY22 due to heightened product demand. However, in FY23, despite recording higher revenue, reduced margins led to lower profits following the normalization after the pandemic. Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, noted that the H1-FY24 performance indicates a return to positive trends, with management confident in sustaining earnings growth, suggesting potential medium to long-term rewards for investors.
The Rs 600-crore IPO, comprising entirely fresh issuance of 1.93 crore shares, garnered substantial interest with a subscription of 59.71 times. Prior to the IPO, Volrado Venture Partners Fund-III-BETA and Madhuri Madhusudan Kela, wife of ace investor Madhusudan Kela, invested Rs 100 crore and Rs 50 crore, respectively. The price band was set at Rs 295-311 per share.
Parth Shah, Research Analyst at StoxBox, advised investors who are allotted shares to capitalize on listing gains due to the competitive landscape and narrow margins in the business.
Proceeds from the IPO will be allocated towards repaying loans (Rs 326 crore), fulfilling working capital needs (Rs 220 crore), and general corporate purposes.
Rashi Peripherals serves as a national distribution partner for leading global technology brands in India, specializing in information and communication technology (ICT) products. Its business operations primarily span across two verticals: Personal Computing, Enterprise and Cloud Solutions (PES), and Lifestyle and IT Essentials (LIT).
