RPTech, earlier known as Rashi Peripherals Ltd, has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
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.
Incorporated in 1989 by Krishna Kumar Choudhary and Sureshkumar Pansari, Rashi 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.
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.
It has a 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.
The Mumbai-based company is a national distribution partner of global technology brands in product categories such as personal computing, mobility, enterprise, embedded solutions, components, lifestyle, storage and memory devices, power and accessories. It distributes products for global technology brands such as ASUS Global Pte. Ltd., Dell International Services India Private Limited, HP India Sales Private Limited, Lenovo India Private Limited, Logitech Asia Pacific Limited, NVIDIA Corporation, Intel Americas, Inc., Western Digital (UK) Limited, Schneider Electric IT business India Private Limited, Eaton Power Quality Private Limited, ECS Industrial Computer Co. Ltd., Belkin Asia Pacific Limited, TPV Technology India Pvt Ltd., LG Electronics India Private Limited, Toshiba Electronic Components Taiwan Corporation, among others.
RPTech aims to expand its geographic presence in non-metro cities which includes tier I and tier II cities and other rural geographies which are becoming centre of consumptions for ICT products such as personal computers, smartphones, internet devices, networking devices.
Rashi Peripheals 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.
The company’s revenue from operations grew 57.19% from ₹ 5,925.05 crore in Fiscal 2021 to ₹ 9,313.44 crore in Fiscal 2022 primarily due to an increase in the revenue from sale of goods, increase in the volume of goods sold, as well as an increase in average selling price of goods. However, profit after tax grew 33.85% to ₹ 182.51 crore for fiscal 2022 against ₹ 136.35 crore for fiscal 2021.
For the six months ended September 30, 2022 revenue from operations stood at ₹ 5,023.81 crore and profit after tax stood at ₹ 67.38 crore.