Why Did Rashi Peripherals Shares Jump 9% in Today’s Session? Check the Reason

Synopsis: Rashi Peripherals Ltd shares rose 9% as it is set to acquire a 67% stake in VDA Infosolutions for ₹368.5 crore, with plans to reach 100% ownership by August 2029 through staggered payments. VDA, a digital solutions company, reported ₹850–1,035 crore revenue recently. The deal strengthens Rashi’s enterprise technology and digital infrastructure business in India.

The shares of a Small-Cap company that specialises in the distribution of Information and Communication Technology (ICT) products and after-sales services across India, are in focus in the day’s trade as they have rallied 9 percent following strategic acquisition approval.

With a market capitalization of Rs. 4,952.69 crores in the day’s trade, the shares of Rashi Peripherals Ltd rose upto 9.1 percent, making a high of Rs. 803.20 per share compared to its previous closing price of Rs. 735.75 per share.

What Happened

Rashi Peripherals Ltd, engaged in the distribution of Information and Communication Technology (ICT) products and after-sales services across India, has approved a strategic acquisition opportunity. The Company will enter into definitive agreements to acquire a 67% equity stake in VDA Infosolutions Private Limited (“VDA”) for a cash consideration of Rs.  368.50 Crores, subject to customary closing conditions.

VDA Infosolutions Private Limited, incorporated in 2010 and operating in the enterprise technology and digital solutions space, will become a subsidiary of the Company upon completion of the transaction. The acquisition is intended to strengthen the Company’s presence in the technology solutions segment.

The target entity has a pan-India presence and reported aggregate income of Rs. 772 crore in FY 2023–24, Rs. 1,035 crore in FY 2024–25, and Rs. 850 crore (unaudited) in FY 2025–26. As of 31 March 2026 (provisional financials), it had total assets of ₹427.43 crore, net worth of ₹234.22 crore, and turnover of ₹850 crore (including other income).

The transaction aligns strategically with the company’s core IT distribution business by enabling forward integration into enterprise technology and digital infrastructure solutions. No regulatory or governmental approvals are required for completion of the transaction.

The acquisition will be executed in a staggered manner, with an initial 67% stake acquired for a consideration of Rs. 368.50 crore (based on a minimum valuation of Rs. 550 crore), followed by the acquisition of the remaining 33% in three equal annual tranches of 11% each, to be completed by August 2029. The entire consideration will be paid in cash through banking channels, and upon completion, the company will acquire 100% of the equity share capital comprising 2,40,000 equity shares of ₹10 each.

Financials & Others

The company’s revenue rose by 51 percent from Rs. 2,973 crores in Q4FY25 to Rs. 4,489 crores in Q4FY26. Meanwhile, Net profit rose from Rs. 53 crores to Rs. 87 crores in the same period.

The company demonstrates solid profitability and capital efficiency. A ROCE of 16.8% and ROE of 14.7% suggest it is generating healthy returns from both total capital and shareholders’ equity, indicating efficient operations and decent earnings quality.

On the balance sheet side, a debt-to-equity ratio of 0.49 shows moderate leverage with manageable financial risk. Meanwhile, a PEG ratio of 0.58 suggests the stock may be undervalued relative to its growth potential, making it appear reasonably attractive from a valuation standpoint.

Rashi Peripherals Ltd is one of India’s leading national distribution companies in the IT and electronics hardware space. It operates as a value-added distributor, supplying a wide range of products such as personal computing devices, components, networking equipment, enterprise solutions, and lifestyle tech accessories. The company works closely with global technology brands and helps them expand their reach across India through a strong partner network of resellers, system integrators, and retailers.

Beyond distribution, Rashi Peripherals also provides support services like pre-sales consultation, logistics, marketing assistance, and after-sales support, which makes it more than just a trading intermediary. Its business model focuses on building demand for partner brands while ensuring availability and technical support across urban and semi-urban markets in India.

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