Rashi Peripherals shares list with single-digit premium despite huge oversubscription
Upstox
3 min read • Updated: February 14, 2024, 4:18 PM
Summary
The ₹600-crore Rashi Peripherals Ltd IPO was open for subscription from February 7 to February 9. The Rashi Peripherals IPO was oversubscribed by almost 60 times. The QIBs portion received the highest bidding at 143.66 times.
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The strong demand for Rashi Peripherals Ltd IPO shares did not translate into any significant premium for the company when the stock made its trading debut on exchanges on Wednesday, February 14.
Shares of tech products distributor Rashi Peripherals Ltd listed at a nearly 9% premium on the National Stock Exchange of India (NSE) at ₹339.5 apiece compared to its IPO (initial public offering) price of ₹311.
On BSE, the stock got listed at ₹335 levels, up 7.7% over the IPO price. By 11:26 am, the share price had slipped further, trading at ₹329.45 apiece on NSE and ₹330 apiece on BSE.
Despite the positive opening, Rashi Peripheral’s listing looks like a setback for investors as most analysts were expecting a premium of around 15-20% in the debut trade given the company’s financial performance and the subscription data.
Rashi Peripherals IPO subscription details, issue size and price band
The ₹600-crore Rashi Peripherals IPO was oversubscribed by almost 60 times when the subscription period ended on February 9.
Highest subscription was seen for the portion reserved for qualified institutional buyers (QIBs) at 143.66 times. The non-institutional investors’ (NIIs) portion was oversubscribed by 62.75 times, while the retail investors’ quota was subscribed 10.44 times.
The price band of the Rashi Peripherals IPO was fixed at ₹295 to 311 per share. Investors could bid for a minimum of 48 shares and in multiples of 48 thereafter.
The IPO was entirely a fresh issue of shares of face value of ₹5 each with no offer-for-sale (OFS) component.
The company had said that, of the ₹600 crore raised, nearly ₹326 crore would be utilised 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.
Rashi Peripherals had also raised ₹180 crore from anchor investors just before the opening of the IPO. Foreign and domestic institutional investors who had 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.
The company had raised another ₹150 crore in a pre-IPO funding round from ace investor Madhu Kela and Volrado Venture Partners.
About Rashi Peripherals Ltd
Rashi Peripherals is one of the leading distribution partners for global technology brands in India for information and communications technology (ICT) products. Incorporated in 1989, it now has a pan-India distribution network of 50 branches, 50 service centers and 63 warehouses.
The company had earlier informed that its revenue from operations posted a compounded annual growth rate (CAGR) of 26.32% during financial years 2020-21 to 2022-23. The revenue stood at ₹9,454.3 crore for the year ended March 2023. For the six months ended September 2023, revenue was ₹5,468.5 crore.
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