RR Kabel IPO Launches Today: GMP, Review & Other Details
The highly anticipated RR Kabel IPO has officially opened for subscription today, September 13, and will remain open until Friday, September 15. With a price band ranging from ₹983 to ₹1,035 per equity share (face value ₹5 each), this IPO is generating significant interest in the market. On the eve of the IPO launch, RR Kabel successfully raised ₹585 crore from anchor investors.
RR Kabel IPO Allocation
In a strategic allocation move, RR Kabel has designated not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), a minimum of 15% for Non-Institutional Investors (NII), and a minimum of 35% for Retail Investors. Additionally, the company has set aside ₹10.8 crore worth of shares for its employees, offering them a discounted rate of ₹98 per share compared to the final offer price.
A Leader in Consumer Electrical Industry
RR Kabel stands as a prominent player in the fast-moving electrical goods (FMEG) and wires and cables sectors within the consumer electrical industry. With over two decades of experience in the Indian market, the company has established itself as a reliable brand. Its listed industry peers include Havells India Ltd, Polycab India Ltd, KEI Industries Ltd, Finolex Cables Ltd, V-Guard Industries Ltd, Crompton Greaves Consumer Electricals Ltd, and Bajaj Electricals Ltd.
The company proudly states, “We are the fastest-growing consumer electrical company among our peers in India, with a remarkable compound annual growth rate (CAGR) of 43.4% between Fiscal 2021 and Fiscal 2023,” in its RHP.
RR Kabel IPO Price
RR Kabel’s IPO floor price is 196.60 times the face value of equity shares, while the cap price is set at 207.00 times the face value.
RR Kabel IPO Details
At the upper end of the price band, RR Kabel’s IPO aims to raise ₹1,964.01 crore. The IPO comprises a fresh issue of equity shares worth ₹180 crore and an offer for sale (OFS) of 1.72 crore equity shares worth ₹1,784 crore, led by the promoters and investors. In the OFS, TPG Asia VII SF Pte Ltd will offload 1.29 crore equity shares, and public shareholder Ram Ratna Wires will sell its entire shareholding of 13.64 lakh shares. Other selling shareholders in the OFS include promoters Mahendrakumar Kabra, Hemant Kabra, Sumeet Kabra, and Kabel Buildcon Solutions, part of the promoter group.
The company intends to use the fresh issue proceeds primarily to repay debt amounting to ₹136 crore and for general corporate purposes.
RR Kabel IPO Market Review
Leading brokerage firm Canara Bank Securities Ltd has noted RR Kabel’s position as the fifth-largest player in the Indian wires and cables business. With the recent acquisition of Luminous Home Electrical, the company plans to introduce premium and mid-premium fans and lights in 2022. Wires and cables constitute the majority of the company’s revenue, boasting a 40% market share in the sector.
“In wires and cables, the company witnessed impressive revenue growth of 63% in FY2022, accompanied by a volume growth of 23%. FY2023 continued to show strength with a growth of 21% and a volume growth of 20%. Though margins were impacted by commodity prices, based on the EPS of FY2023, the company appears fairly priced, making it a recommended choice for long-term investors,” advised the brokerage house.
RR Kabel IPO Timeline and GMP
The basis of allotment of RR Kabel IPO shares will be finalized on Thursday, September 21. Refunds will be initiated on Friday, September 22, and the shares will be credited to the demat accounts of allottees on Monday, September 25. RR Kabel IPO shares are set to be listed on BSE and NSE on Tuesday, September 26.
RR Kabel IPO GMP
The RR Kabel IPO GMP today, or grey market premium, stands at +150, mirroring the previous trading session. This indicates that RR Kabel IPO shares are currently trading at a premium of ₹150 in the grey market, according to topsharebrokers.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of RR Kabel IPO shares is ₹1,185 apiece, representing a 14.49% increase from the IPO price of ₹1,035.
About RR Kabel:
RR Kabel specializes in consumer electrical products designed for residential, commercial, industrial, and infrastructure applications. The company operates within two main segments: wires & cables and FMEG (fast-moving electrical goods), including fans, lights, switches, and appliances.
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