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Business News/ Markets / Stock Markets/  Rashi Peripherals IPO: 10 Key risks from RHP to consider before investing
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Rashi Peripherals IPO: 10 Key risks from RHP to consider before investing

Rashi Peripherals IPO: The initial public offering of Rashi Peripherals Limited started in the primary market today. The public issue will remain open for bidders till 9th February 2024. Check for 10 key risks from RHP to consider before subscribing to issue

Rashi Peripherals IPO opens today: 10 Key risks from the RHP to know before investing (https://www.rptechindia.com/)Premium
Rashi Peripherals IPO opens today: 10 Key risks from the RHP to know before investing (https://www.rptechindia.com/)

Rashi Peripherals IPO: The initial public offering (IPO) of Rashi Peripherals Limited started in the primary market today. The public issue will remain open for bidders till 9th February 2024.

 The global tech brand distributor company has fixed Rashi Peripherals' IPO price at 295 to 311 per equity share. The book build issue aims to raise 600 crore via the issuance of fresh shares. The public offer is proposed for listing on BSE and NSE.

Risks Relating to the Business of Rashi Peripherals

1. Rashi Peripherals is dependent on various vendors, who are global technology brands, for the products they distribute. Any delay or failure on part of such global technology brands to supply products may materially and adversely affect its business, profitability and reputation.

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2. Rashi Peripherals business is dependent on global technology brands effectively maintaining, promoting or developing their brands and maintaining standard quality products including launching new information and communications technology products at regular intervals.

3.If Rashi Peripherals is unable to maintain its relationships with its Channel Partners or customers or if any of these parties change the terms of their arrangements with the company, Rashi Peripherals business could be materially and adversely affected.

4. Rashi Peripherals is reliant on its relationships with certain online marketplaces and disruptions to such relationships or changes in their business practices, may adversely affect its business and its financial condition,  results of operations and cash flows. 

5. Rashi Peripherals could be subject to product liability claims, which may have a material adverse impact on its business.

6. Certain of company's contracts or distribution agreements may have restrictive covenants and can typically be terminated without cause, which could negatively impact its business, results of operation and financial condition.

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7. Increasing competition in the information and communications technology products distribution industry may create certain pressures that may adversely affect Rashi Peripheral business, prospects, results of operations, cash flows and financial condition.

8. The reputation and consumer goodwill associated with Rashi Peripheral brand name is critical to the success of our business. An inability to maintain or enhance the popularity of its brand among brands and customers may adversely impact its business prospects and financial performance.

9. Rashi Peripherals has significant credit exposure to its Channel Partners and other customers, and negative trends in their businesses could cause it significant credit loss and negatively impact its cash flow and liquidity position.

10. Rashi Peripherals gross margins are low, which magnifies the impact of variation in revenue, operating costs, bad debts and interest expense on its operating results.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Published: 07 Feb 2024, 01:06 PM IST
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