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Check Out The Price Range And Other Information For The Sept. 13 Opening Of The TPG-Backed RR Kabel IPO.

ByNishat Manzar

Sep 8, 2023

Incorporated in 1995, RR Kabel offers consumer electrical products for infrastructure, business, and residential use.

The subscription period for RR Kabel’s initial public offering (IPO) will begin on Wednesday, September 13. The company has established a price range of Rs 983-1,035 per unit. Investors had the option to bid on lots starting at 14 equity shares and their multiples. The matter will be resolved on Friday, September 15.

The initial public offering would involve the sale of new equity shares for Rs 180 crore. Up to 1,72,36,808 shares will be sold by company promoters and current shareholders through an offer-for-sale (OFS) process. The company wants to raise Rs 1,964 crore at the issue’s higher price range.

The net proceeds from the new issue would be used for general corporate purposes as well as the repayment or prepayment, in full or in part, of borrowings obtained by the company from banks and financial institutions. The selling shareholders will receive the entire profit from OFS. On Tuesday, September 12, the anchor book will debut.

In addition to other selling shareholders like Ram Ratna Wires and TPG Asia VII SF, promoters MahendraKumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra, and Kabel Buildcon Solutions will take part in the OFS. Other investors have purchased shares for Rs 1.62 to Rs 7.68 each, with the exception of TPG Asia, whose average cost of acquisition is Rs 270.08 per share.

Employees who meet the company’s eligibility requirements will receive shares worth Rs 10.80 crore at a discount of Rs 98 per share. Qualified institutional bidders (QIBs) will receive 50% of the net offer, while non-institutional investors (NIIs) will receive 15% of the shares. The remaining 35% of the issue’s allocation will go to retail investors.

Since its incorporation in 1995, RR Kabel has operated in two main segments: wires and cables, which includes house wires, industrial wires, power cables, and special cables, and FMEG, which includes fans, lighting, switches, and appliances. These products are used for residential, commercial, industrial, and infrastructure purposes.

The business operates two manufacturing facilities in Gujarat’s Waghodia, Dadra and Nagar Haveli’s Silvassa, and the Indian states of Daman and Diu, where it primarily manufactures wire, cables, and switches. Additionally, it owns and manages three integrated manufacturing facilities in Gagret, Himachal Pradesh, Bengaluru, Karnataka, and Roorkee, Uttarakhand.

RR Kabel reported a net profit of Rs 189.87 crore with total revenues of Rs 5,633.64 crore for the fiscal year that ended on March 31. Its net profit for the prior fiscal year that ended on March 31, 2022, was Rs 213.94 crore, and its operating revenue was Rs 4,432.22 crore.

The issue’s registrar has been named as Link Intime India, and the book running lead managers are Axis Capital, Citigroup Global Markets India, HSBC Securities & Capital Markets, and JM Financial. The company’s shares will be listed on the BSE and NSE, with a tentative listing date of Tuesday, September 26.