The RR Kabel IPO, which commenced its subscription on September 13 and is set to conclude on September 15, has garnered modest interest from investors thus far. Here’s a breakdown of the latest developments in the RR Kabel IPO journey.
RR Kabel IPO Subscription Status:
As of the second day of the IPO bidding process, RR Kabel IPO has witnessed a subscription rate of 46%. Investors have tendered bids for 60.63 lakh shares out of the 1.33 crore equity shares available for subscription, based on data provided by the NSE until 12:25 pm.
- Retail investors have shown substantial interest, subscribing to 60% of the allotted portion.
- Non-Institutional Investors (NII) have committed to 69% of their portion.
- Employees of RR Kabel have shown strong support, subscribing to 89% of the allocated shares.
- Qualified Institutional Buyers (QIB) have submitted bids for 10,808 shares.
RR Kabel IPO Details:
The RR Kabel IPO price band is set between ₹983 to ₹1,035 per share. At the upper end of this price range, the IPO’s total issue size is ₹1,964.01 crore. This comprises ₹180 crore from a fresh issue of equity shares and ₹1,784 crore from an offer for sale (OFS) of 1.72 crore equity shares by the promoters and investors.
- TPG Asia VII SF Pte Ltd will sell 1.29 crore equity shares in the OFS.
- Public shareholder Ram Ratna Wires will divest its entire shareholding of 13.64 lakh shares.
- Additional selling shareholders in the OFS include promoters Mahendrakumar Kabra, Hemant Kabra, Sumeet Kabra, and Kabel Buildcon Solutions, a part of the promoter group.
The lot size for RR Kabel IPO is 14 shares, with a minimum investment amount of ₹14,490 required for retail investors. The primary utilization of the fresh issue proceeds will be for repaying debt totaling ₹136 crore, in addition to addressing general corporate needs.
RR Kabel IPO GMP Today:
The grey market premium (GMP) for RR Kabel IPO today stands at ₹146 per share. This indicates that RR Kabel shares are trading at a premium of ₹146 in the grey market on Thursday, as reported by topsharebrokers.com. Considering the upper end of the IPO price band and the current grey market premium, the estimated listing price for RR Kabel IPO shares is anticipated to be ₹1,181 each, reflecting a 14.11% increase from the IPO price of ₹1,035.
RR Kabel IPO Review:
Assessing the company’s financials for FY23, RR Kabel has reported an average EPS of ₹16.97 (fully diluted) and an average Return on Net Worth (RoNW) of 14.78% over the last three fiscal years.
Reliance Securities provided a positive outlook, stating, “The structural growth drivers for the consumer electrical business continue to remain strong. RR Kabel has a diverse suite of products and has successfully expanded its B2C business in W&C. With an expanding FMEG segment and an extensive global and domestic network, the company is building a robust consumer brand. We believe the path towards premiumization could lead to structural margin expansion, and B2C sales are likely to remain strong in the coming years. The recent correction in input prices and the strong surge in multiple demand drivers augur well for the company. We recommend subscribing to the issue.”
About RR Kabel:
RR Kabel is a company that excels in crafting consumer electrical solutions tailored for a wide range of settings, encompassing residential, commercial, industrial, and infrastructure domains. Their operations are divided into two principal segments: wires & cables and FMEG (fast-moving electrical goods), which encompass products such as fans, lights, switches, and appliances.
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