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Mumbai-based Rashi Peripherals Ltd among the leading value-added national distribution partners for global technology brands in India for information and communications technology (“ICT”) products in terms of revenues and distribution network in Fiscal 2022 has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 750 crore through an initial public offering (IPO).

The company had filed preliminary IPO papers with Sebi on January 18, 2023.

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 Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 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 of equity shares for cash consideration aggregating up to Rs 150 crore. If such placement is completed, the fresh issue size will be reduced.

The proceeds from its fresh issuance, Rs. 400 crore will be utilised for prepayment or scheduled re-payment of all or a portion of certain outstanding borrowings availed by the Company, Rs 200 crore for funding working capital requirements and general corporate purposes.

Rashi Peripherals Limited was incorporated in 1989 by Mr. Krishna Kumar Choudhary and Mr. 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 mentioned 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.

Its 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 Peripherals 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 a 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.

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