1. Rashi Peripherals IPO oversubscribed nearly 60 times on Day 3, check details

Rashi Peripherals IPO oversubscribed nearly 60 times on Day 3, check details

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3 min read • Updated: February 12, 2024, 12:11 PM

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Summary

Rashi Peripherals raised ₹180 crore from anchor investors before the IPO opened for subscription. The company also raised ₹150 crore in a pre-IPO funding round.

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Rashi Peripherals IPO oversubscribed

As has been the recent trend with public issues, the initial public offering (IPO) of Rashi Peripherals Ltd too was a major success, with the demand for its shares far exceeding the offer size.

After three days of bidding, from 7 February to 9 February, the ₹600-crore Rashi Peripherals IPO was oversubscribed by a huge 59.71 times, drawing interest from all classes of investors. The issue received total bids for almost 850 million equity shares against the IPO size of 14.2 million shares.

Leading the pack were qualified institutional buyers (QIBs) whose quota was subscribed by a whopping 143.66 times. Non-institutional investors’ portion also saw massive oversubscription of 62.75 times. Meanwhile, the retail investors’ quota was subscribed 10.44 times.

Rashi Peripherals IPO: Price band, lot size and allotment date

The price band of the offer was fixed at ₹295 to ₹311 per share. Investors could bid for a minimum of 48 shares and in multiples of 48 thereafter.

The bidders would now be waiting for the share allotment that is expected to be finalised by 12 February.

Those who have placed bids for the Rashi Peripherals shares can check the allotment status next week either at the official BSE website or through the website of the registrar to the issue, Link Intime India Private Ltd.

After the finalisation of share allotment, the process of crediting shares in the demat account of successful bidders should be completed by 13 February. Refunds to those who were not allotted shares is also likely to be initiated on the same day.

The stock is likely to make its trading debut on BSE and the National Stock Exchange of India (NSE) on 14 February.

Rashi Peripherals IPO: Issue size and anchor investors

The Rashi Peripherals IPO was entirely a fresh issue of shares of face value of ₹5 each with no offer-for-sale (OFS) component.

Of the funds raised, the company had said that it plans to utilise ₹326 crore for prepayment or scheduled repayment of all or a portion of certain outstanding borrowings. Another ₹220 crore would be used for funding working capital requirements and the balance amount for general corporate purposes.

Just a day before the IPO had opened for subscription, the company raised ₹180 crore from anchor investors. Foreign and domestic institutional investors who participated in the anchor round were White Oak Capital, Ashoka India, ICICI Prudential Mutual Fund, Volrado Venture Partners Fund, Bajaj Allianz Life Insurance Company, Aditya Birla Sun Life Insurance Company, SBI General Insurance Company, Singularity Growth Opportunity Fund and Authum Investment and Infrastructure Ltd.

Before that, the company had also raised ₹150 crore in a pre-IPO funding round from ace investor Madhu Kela and Volrado Venture Partners.

Incorporated in 1989, Rashi Peripherals Ltd is one of the leading distribution partners for global technology brands in India for information and communications technology (ICT) products. With a pan-India distribution network of 50 branches, 50 service centers and 63 warehouses, the company caters to technology requirements of 8,407 customers in 680 locations across the country.

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