Despite a premium listing, the muted opening was due to the highly competitive market environment in which the company is operating and also the current market sentiments.
“We expect the company to benefit from the emerging demand scenario in the industry. But given the highly competitive environment and thin margins of the business, we recommend investors who have been allotted the shares to reap the benefits of listing gains and book profits,” said Parth Shah, research analyst at StoxBox.
Rashi Peripherals is among the leading national distribution partners for global technology brands in India for information and communications technology (ICT) products in terms of revenues and distribution network in FY23, boasting partnerships with over 52 global technology brands and offering over 10,000 products.
Over the years, the company has continuously expanded its operations and its distribution network and currently has one of the largest ICT product distribution networks in India.
Before the IPO, the company had successfully completed a pre-IPO placement by offering 48.23 lakh shares to private investors under which Madhu Kela picked up some stake.”While the listing was positive, the lower-than-expected premium and identified risks necessitate a cautious approach. Investors who want to hold it even after listing are advised to keep the stop loss at the issue price,” said Shivani Nyati, Head of Wealth, Swastika Investmart.In the six months ended September 2023 period, revenue from operations grew 9% year-on-year to Rs 5,467 crore, while net profit increased 7% to Rs 72 crore.
The company proposes to use the net proceeds for the repayment of debt, to fund working capital requirements and the rest for general corporate purposes.
JM Financial and ICICI Securities acted as the book-running lead managers to the offer.
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