The initial public offering (IPO) of RR Kabel will open for subscription today, 13 September, and close on 15 September. The Mumbai-based wire and cable manufacturer aims to raise Rs 180 crore through a fresh issue, and Rs 1,784 crore through an offer for sale, according to its red herring prospectus filed with the Securities and Exchange Board of India (SEBI) on 6 September.
With more than 20 years of history, RR Kabel is one of the top companies in the fast-moving electrical goods (FMEG) and wires and cables segment of the consumer electrical industry.
Price Band
RR Kabel IPO price band has been fixed between Rs 983 to Rs 1,035 per equity share of face value of Rs 5 each.
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RR Kabel IPO Lot Size
Investors can bid for a minimum of 14 equity shares and in multiples thereafter. Bids can be placed for maximum 14 lots at the lower price band.
Key Dates
RR Kabel public issue basis of allotment of shares will be finalized on Thursday, 21 September. The company will start refunds on Friday, 22 September. The shares will be credited to the demat account of allottees on Monday, 25 September. RR Kabel is likely to be listed on the BSE and NSE on Tuesday, 26 September.
RR Kabel Issue Size
At the upper end of the price band, RR Kabel IPO plans to raise Rs 1,964.01 crore from the IPO. The IPO comprises fresh issue of equity shares worth Rs 180 crore and an offer for sale (OFS) of 1.72 crore equity shares worth Rs 1,784 crore by promoters and investors. In the OFS, US-based private equity firm TPG Asia VII SF Pte Ltd will sell 1.29 equity shares. It owns a 20.99 per cent stake in RR Kabel. Public shareholder Ram Ratna Wires will sell its entire shareholding of 13.64 lakh shares.
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Other OFS selling shareholders include promoters Mahendrakumar Kabra, Hemant Kabra, Sumeet Kabra, and Kabel Buildcon Solutions.
RR Kabel IPO Reservation
The company has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIBs), not less than 15 per cent for non-institutional investors (NII), and not less than 35 per cent of the offer is reserved for retail investors.
In addition, RR Kabel has reserved shares worth Rs 10.8 crore for its employees. It is offering shares to its employees at a discount of Rs 98 per share to the final price offer.
Grey Market Premium
According to topsharebrokers.com, RR Kabel shares were commanding a premium of Rs 218 in the grey market on Tuesday.
Use of Proceeds
The company plans to utilize the fresh issue proceeds mainly for repayment of borrowings availed by the company from banks and financial institutions. The company plans to use Rs 136 crore for this purpose in FY24. The remaining funds will be used for general corporate purposes.
Link Intime India Private Ltd is the official registrar registrar for the issue.
Axis Capital Ltd, Citigroup Global Markets India Private Ltd, HSBC Securities and Capital Markets (India) Private Ltd, JM Financial Ltd are the book running lead managers for the offer.
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