Rashi Peripherals Limited has submitted a draft Red Herring prospectus (DRHP) to the markets regulator Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering.

Mumbai-based Rashi Peripherals is a value-added national distribution partner for India’s global technology brands of Information and Communication Technology (ICT) products. Rashi Peripherals is also known as RPTech.

Rashi Peripherals is looking to raise Rs 750 crore in an initial equity sale, a new issue. After consultations with leading bankers, the company may consider a private equity placement with a total cash consideration of up to Rs 150 crore.

The net proceeds from the offering will be used to advance/repay certain outstanding funds available to the company for working capital needs and general corporate purposes.

Founded in 1989, Rashi Peripherals provides end-to-end value-added services such as pre-sales activities, solution design, technical support, credit solutions, marketing services, and warranty management services. As of September 30, 2022, it has a pan-India distribution network comprising 50 branches operating as sales and service centres and 62 warehouses covering 730 locations across India.

Rashi Peripherals distributes products for global technology brands such as ASUS Global, Dell International Services India, HP India Sales, Lenovo India, Logitech Asia Pacific, NVIDIA Corporation, Intel Americas, Western Digital (UK), Schneider Electric IT Business India, Eaton Power Quality, ECS Industrial Computer, Belkin Asia Pacific, TPV Technology India, LG Electronics India, Toshiba Electronic Components, etc.

Rashi Peripherals posted a net profit of Rs 182.51 crore for the year ended March 31, 2022, 34% higher than the net profit of Rs 136.35 crore in the previous financial year. It reported a 57% rise in operating income at Rs 9,313.44 crore in FY22 compared to Rs 5,925.05 crore in FY21.

For the six months that ended September 30, 2022, it had an operating income of Rs 5,023.81 crore and a profit after tax of Rs 67.38 crore.

Qualified Institutional Bidders (QIBs) will receive 50% of the bids, while the quota for non-institutional investors is fixed at 15% of the bids. Retail bidders will get the remaining 35%. JM Financial and ICICI Securities are the lead book-runners, and Link Intime India is the registrar for the offer.