ICT Major Coming Out With Fresh Issue
Rashi Peripherals is one of the fastest growing distribution partners for global technology brands in India.
MUMBAI, Apr 5 (The CONNECT) -ICT major Mumbai-based Rashi Peripherals Ltd has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), paving the way for its Rs 750-crore initial public offering (IPO).
Rashi, a value-added national distribution partners for global technology brands in India for information and communications technology (ICT) products, had filed filed its draft red herring prospectus on January 18.
The public issue with a face value of Rs 5 per equity share is a complete fresh issue of shares of Rs 750 crore with no offer-for sale component.
The IPO is being made through the Book Building Process, wherein 50% of the equity shares are reserved for Qualified Institutional Buyers, 15% for non-institutional bidders and 35% of the Offer shall be available for allocation to retail individual bidders.
The company, in consultation with the lead bankers to the issue, may consider a private placement aggregating up to Rs 150 crore. If such placement is completed, the fresh issue size will be reduced.
Rs. 400 crore of the issue proceeds will be utilised for settling debts, Rs 200 crore for funding working capital requirements and general corporate purposes.
Rashi Peripherals Limited was incorporated in 1989 by Krishna Kumar Choudhary and Sureshkumar Pansari. It is one of the fastest growing distribution partners for global technology brands in India in terms of revenue growth between Fiscal 2020 and Fiscal 2022, according to a Technopak report quoted in the DRHP. It differentiates itself by offering end-to-end value-added services such as pre-sale activities, solutions design, technical support, marketing services, credit solutions and warranty management services.
It has a pan-India distribution network comprises 50 branches that operate for sales and as service centers and 62 warehouses, covering 730 locations in India, as of September 30, 2022.
Rashi Peripheals commands significant market share in India in product categories such as processors (40%), pendrives (50%), hard drives (27%), keyboards and mice (20%), monitors (25%), UPS (10%), laptops (10%), desktops (15%), routers (30%), and switches (5%), in Fiscal 2022 according the Technopak Report.
JM Financial Limited and ICICI Securities Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
