RR Kabel IPO Opens on September 13
Newzdaddy Business Updates
In a bid to go public, RR Kabel, a prominent wire and electrical cable manufacturer supported by TPG, has announced the pricing details for its Initial Public Offering (IPO). The IPO will consist of new equity shares worth up to ₹180 crore and the sale of over 1.72 crore equity shares by existing shareholders.
IPO Price Range
The price range for RR Kabel’s IPO has been set at ₹983-1,035 per share. If the shares are sold at the upper end of this range, the company stands to raise a substantial ₹1,964 crore. Rajesh Babu Jain, the company’s Chief Financial Officer, provided this information.
The Anchor Investor Bidding Date is scheduled for September 12, 2023. The IPO will open for subscription on September 13, 2023, and close on September 15, 2023.
Company Overview
RR Kabel operates five manufacturing units across India, including cable and wire units in Gujarat and Silvasa, a commercial lighting plant in Bengaluru, and fast-moving electrical goods (FMEG) units in Uttarakhand and Himachal Pradesh. Notably, a significant portion of the company’s revenue, approximately 88%, is derived from cables and wires.
Shreegopal Kabra, the Managing Director, highlighted the company’s commitment to research and development, ensuring product quality that meets international standards. RR Kabel exports its products to 63 countries and maintains rigorous quality standards for domestic consumers as well.
OFS Participants
Prominent participants in the Offer For Sale (OFS) include Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra, Kabel Buildcon Solutions Pvt Ltd, and Ram Ratna Wires Ltd. TPG Capital, holding a 21% stake in RR Kabel, will partially divest its stake through the OFS.
RR Kabel has allocated ₹10.8 crore worth of shares for eligible employees, who will have the opportunity to purchase shares at a discount of ₹98 per share based on the final offer price.
The company intends to use ₹136 crore from the IPO’s net proceeds to repay a portion of its debt owed to banks and financial institutions.
Investment Details
Interested investors can bid for a minimum of 14 equity shares, with bids thereafter to be made in multiples of 14 equity shares. In the fiscal year 2021-22, RR Kabel, a part of RR Global Group, reported a net profit of ₹214 crore and revenue of ₹4,386 crore.
Lead Managers
The book-running lead managers for the IPO are Axis Capital Ltd, Citigroup Global Markets India Pvt Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, and JM Financial Ltd. Post-IPO, RR Kabel’s equity shares will be listed on the BSE and NSE stock exchanges.
