The highly anticipated initial public offering (IPO) of Rashi Peripherals Limited commenced today, with the bidding window open until February 9, 2024. Priced at Rs 295 to Rs 311 per share, the global tech brand distributor aims to mobilize Rs 600 crore through the issuance of fresh shares. The IPO is geared towards a listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Prior to the IPO subscription date, Rashi Peripherals shares have made a notable debut in the grey market, trading at a premium of Rs 71 per share, as reported by market observers. The public offering, open until February 9, seeks to capitalize on the growing market interest.
The lot size for Rashi Peripherals IPO is set at 48 company shares, allowing bidders to apply in multiple lots. As per T+3 listing rules, the share allocation is anticipated to be finalized either on February 10, 2024, or on February 12, 2024.
“The IPO valuation of 10.54x P/E appears fully priced on a current basis. While the company’s future growth potential and the positive industry outlook are encouraging thus we recommend Subscribe rating for this IPO,” said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
Nyati also said that However, some key risks require careful consideration. Rashi Peripherals’ dependence on third-party vendors and channel partners exposes it to external factors beyond its direct control. Additionally, its relatively low gross margins compared to industry peers warrant scrutiny.