Rashi Peripherals IPO to open today: Should you subscribe to the Madhusudan Kela-backed issue?
Ahead of its IPO, Rashi Peripherals went for a pre-IPO placement of Rs 150 crore.
- Feb 7, 2024,
- Updated Feb 7, 2024 9:04 AM IST
The initial public offering (IPO) of Rashi Peripherals will open for subscription today. The tech-products distributor is offering its shares in the price band of Rs 295-311 apiece. Interested investors can apply for a minimum of 48 shares and its multiples thereafter. The issue can be subscribed till Friday, February 9, 2023. The company’s topline was consistent from FY21-23 while its bottom line was affected in FY23. Its debt-to-equity ratio and inventory turnover ratio is a concern, said Sushil Finance. "Increasing competition in the information and communications technology products distribution industry may create certain pressures that may adversely affect the business," it said. “The company is asking for a PE multiple of 10.54 times on the upper end of the price band and using diluted EPS for FY23 and a PE of 8.53 times annualising diluted EPS for H1FY24. The industry average is 9.92 times. The issue seems fully priced. Looking at all the factors, risks, opportunities and valuation, investors may apply for the issue with a long term view,” said Sushil Finance.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: Canara Bank board to consider stock split on February 26
The initial public offering (IPO) of Rashi Peripherals will open for subscription today. The tech-products distributor is offering its shares in the price band of Rs 295-311 apiece. Interested investors can apply for a minimum of 48 shares and its multiples thereafter. The issue can be subscribed till Friday, February 9, 2023. The company’s topline was consistent from FY21-23 while its bottom line was affected in FY23. Its debt-to-equity ratio and inventory turnover ratio is a concern, said Sushil Finance. "Increasing competition in the information and communications technology products distribution industry may create certain pressures that may adversely affect the business," it said. “The company is asking for a PE multiple of 10.54 times on the upper end of the price band and using diluted EPS for FY23 and a PE of 8.53 times annualising diluted EPS for H1FY24. The industry average is 9.92 times. The issue seems fully priced. Looking at all the factors, risks, opportunities and valuation, investors may apply for the issue with a long term view,” said Sushil Finance.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: Canara Bank board to consider stock split on February 26