Rashi Peripherals IPO opens on Wednesday. What GMP signals ahead of subscription

Ace investor Madhu Kela-backed Rashi Peripherals IPO will open for subscription on Wednesday. Ahead of the issue opening, the company’s shares are trading with a GMP of Rs 70 in the unlisted market.

The IPO is entirely a fresh equity issue of Rs 600 crore with no offer-for-sale component. About 50% of the issue is reserved for qualified institutional buyers, 15% for non-institutional bidders, and 35% for retail investors.

Rashi Peripherals has fixed a price band of Rs 295-311 per share and investors can bid for a minimum of 48 shares and in multiples thereafter.

The company proposes to use the net proceeds for repayment of debt, funding working capital requirements and the rest for general corporate purposes.

Ahead of the IPO, the company has raised Rs 150 crore, under which Madhu Kela acquired shares worth Rs 50 crore.

Madhuri Kela, the wife of ace investor Madhusudan Kela, acquired 16.07 lakh shares worth Rs 50 crore at Rs 311 apiece.Rashi Peripherals is one of the fastest-growing distribution partners for global technology brands in India in terms of revenue growth between FY21-23.The company 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. As of September 2023, it is a national distribution partner for 52 global technology brands.

RPTech aims to expand its geographic presence in non-metro cities, which includes Tier-I and Tier-II cities and other rural geographies which are becoming centres of consumption for ICT products such as personal computers, smartphones, internet devices, networking devices, according to the Technopak Report.

In the six months ended September 2023 period, Rashi Peripherals’s revenue from operations grew 9% year-on-year to Rs 5,467 crore, while net profit increased 7% to Rs 72 crore.

JM Financial and ICICI Securities are the book-running lead managers to the offer.

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