Rashi Peripherals Limited IPO

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i. Incorporated in 1989 and having more than 33 years of experience in the distribution of ICT products in India, the Company commenced operations with the manufacturing of peripherals. With the liberalization of the Indian IT sector in 1991, they transitioned to the distribution of ICT products of global technology brands in India.

ii. The company primarily operate the following two business verticals:

Personal Computing, Enterprise and Cloud Solutions (“PES”): Under this vertical we distribute 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 that include graphic cards, central processing units (“CPUs”) and motherboards;
(ii) storage and memory devices;
(iii) lifestyle peripherals and accessories that include keyboard, mice, web cameras, monitors, wearables, casting devices, fitness trackers and gaming accessories;
(iv) power equipment such as UPS and invertors; and
(v) networking and mobility devices

iii. Their pan-India distribution network comprises 50 branches that operate for sales and as service centers and 62 warehouses. Through their branches and warehouses, they are able to cover 730 locations in India.

iv. The company distribute products primarily through the following channels:

(i) General Trade: Includes Hybrid Resellers who sell to online marketplaces and retail channels, regional distributors (“RDs”), stockist partners or sub-distributors, retailers, brand stores, system integrators (“SIs”), original equipment manufacturers (“OEMs”) and corporate resellers who sell to corporate customers, all of which are collectively referred to as “Channel Partners”. As of September 30, 2022, we had an ecosystem of 8,657 customers.

(ii) Modern Trade: Includes large format retail (“LFR”), multi-format retail (“MFR”) and small format retail (“SFR”) chains

(iii) E-Commerce: Includes certain of India’s leading online marketplaces.

Competitive Strengths

(i) Leading and fastest growing Indian distribution partner for information and communications technology products.
(ii) Pan-India and multi-channel distribution footprint backed by dedicated in-house infrastructure
(iii) Long-term relationships with marquee global technology brands supported by committed engagement strategy with customers

 

 

 

Objects of the Rashi Peripherals Limited IPO:

The Offer comprises an issue aggregating up to ₹7,500 million by the Company. The Company proposes to utilize the Net Proceeds from the Offer towards funding the following objects: 1. Prepayment or scheduled re-payment of all or a portion of certain outstanding borrowings availed by the Company; 2. Funding working capital requirements of the Company; and 3. General corporate purposes  

Rashi Peripherals Limited IPO Details:

Open Date: Feb 07 2024
Close Date: Feb 09 2024
Total Shares: 19,292,604
Face Value: ₹ 5 Per Equity Share
Issue Type: Book Building
Issue Size: 600.00 Cr.
Lot Size: 48 Shares
Issue Price: ₹ 295 - 311 Per Equity Share
Listing At: NSE,BSE
Listing Date: Feb 14 2024

Promoters And Management:

i. Krishna Kumar Choudhary is a Promoter, Chairman and Whole-time Director of the Company. He obtained his bachelor’s degree of commerce from Kashi Hindu University, in 1975. He has 25 years experience in the IT distribution industry. He is also a member of Institute of Chartered Accountants of India He has been associated with the Company since 1997. ii. Sureshkumar Pansari is a Promoter, Vice-Chairman and Whole-time Director of the Company. He obtained his bachelor’s degree in commerce from the Rajasthan University in 1975. He is also an associate member of the Institute of Chartered Accountants of India. He has 33 years experience in the technology channel sector. He has been associated with the Company since 1989. iii. Kapal Suresh Pansari is a Promoter and Managing Director of the Company. He obtained his bachelor’s degree in commerce from the University of Mumbai in 2004. He has 15 years experience in the technology channel sector. He has been associated with the Company since 2007.  

Financials of Rashi Peripherals Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23
Equity Share Capital 9.95 208.92 208.92
Reserves 3,933 5,543 6,793
Borrowings 4,890 8,817 10,658
Trade Payables 6,639 11,284 9,562
Other Liabilities 473 848 765
Total Liabilities 12,001 20,950 20,984
Net Block 521 580 540
Capital Work in Progress 32 0.92 40
Investments 0.03 73 56
Other Assets 419 532 618
Total NC Assets 972 1,186 1,254
Receivables 7,924 11,521 8,716
Inventory 5,725 11,993 14,934
Cash & Bank 289 452 346
Other Assets 1,034 1,549 2,736
Face value 5 5 5
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Sales 59,250 93,134 94,543
Purchases of Stock In Trade 56,476 94,243 92,081
Change in Inventory -684 -6,268 -2,941
Employee Cost 787 1,143 1,360
Other Expenses 585 1,049 1,513
Other Income 67 85 147
Depreciation 75 117 167
EBITDA 2,152 3,052 2,676
EBITDA Margin 3.63% 3.28% 2.83%
Interest 289 537 863
Profit before tax 1,789 2,398 1,646
Tax 425 573 413
Net profit 1,364 1,825 1,233
NPM (%) 2.30% 1.96% 1.30%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 2,123 3,111 2,575
Receivable -3,478 -3,628 2,819
Inventory -687 -6,268 -2,941
Payable 1,465 4,977 -1,860
Other WC Items -171 -592 -1,211
Working Capital Changes -2,870 -5,510 -3,193
Direct Taxes -350 -752 -528
Net Cash Inflow from Operating Activity -1,098 -3,152 -1,146
Cash from Investing Activity
Fixed assets purchased -60 -123 -113
Fixed assets sold 8 0.62 1
Investments purchased 0 -20 0
Investment in subsidiaries 78 0 0
Other investing items -37 78 74
Net cash inflow from investing activities -10 -64 -38
Cash from Financing Activity
Proceeds from shares 0 -2 0
Proceeds from borrowings 1637 3927 1959
Intrest paid fin -288 -534 -838
Dividends paid 0 -1 -1
Other financing items -5 -15 -41
Net Cash Flow 237 159 -105

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Rashi Peripherals Limited 9454 123 18.71 16.6 311 2,049
Redington India Limited 79377 1,439 17.82 13.1 208 16,222
* All the data is as per FY23.

Lead Manager of Rashi Peripherals Limited IPO:

  1. ICICI Securities Limited
  2. JM Financial Consultants Private Limited

Registrar of Rashi Peripherals Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Ariisto House, 5th Floor, Corner of Telli Galli, Andheri (E), Mumbai 400 069, Maharashtra, India  

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