RR Kabel IPO opens tomorrow: GMP, price, dates, and more

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RR Kabel IPO Opens Tomorrow: GMP, Price, Dates and More

The highly anticipated RR Kabel IPO is set to open for subscription on Wednesday, September 13th. As a prominent player in the fast-moving electrical goods (FMEG) and wires and cables sectors of the consumer electrical industry, RR Kabel boasts a rich history spanning over two decades in India.

RR Kabel Market Presence and Export Prowess

According to the Red Herring Prospectus (RHP) dated March 31, 2023, RR Kabel holds the fifth-largest market share by value in India’s wires and cables industry. Notably, in 2022, the company stood as one of India’s leading exporters of wires and cables, contributing a significant 9% to the nation’s total exports.

RR Kabel’s Peers and Valuations

The RHP highlights RR Kabel’s industry peers, including 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. These companies are currently trading at P/E ratios ranging from 34.52 to 79.49 based on FY23 figures.

RR Kabel’s Impressive Growth Trajectory

RR Kabel’s growth story is truly remarkable, with the company achieving a Compound Annual Growth Rate (CAGR) of 43.4% between Fiscal 2021 and Fiscal 2023, making it the fastest-growing consumer electrical company among its peers in India.

RR Kabel IPO Key Details

  1. IPO Dates: The RR Kabel IPO subscription window opens on September 13 and closes on September 15, providing investors a limited time frame for participation.
  2. Price Range: The IPO’s price band is set between ₹983 to ₹1,035 per equity share, with a face value of ₹5 each.
  3. Lot Size: RR Kabel IPO offers a lot size of 14 equity shares, available in multiples of 14 equity shares thereafter.
  4. Anchor Investors: Allocation to anchor investors is scheduled for September 12, a day prior to the public offering.

RR Kabel IPO Fundraising and Offer Structure

At the upper end of the price band, RR Kabel aims to raise ₹1,964.01 crore from the IPO. This includes 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 by the promoters and investors. Notably, TPG Asia VII SF Pte Ltd will offload 1.29 crore equity shares, while public shareholder Ram Ratna Wires plans to 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, a part of the promoter group.

Also Read: R R Kabel IPO Details | GMP, Date, Price, Review, Allotment

RR Kabel IPO Objectives

The proceeds from the fresh issue will primarily be allocated towards debt repayment amounting to ₹136 crore and general corporate purposes.

RR Kabel Allotment and Listing Dates

The basis of allotment of RR Kabel IPO shares will be finalized on Thursday, September 21. Refunds will commence on Friday, September 22, with shares expected to be credited to the demat accounts of allottees on Monday, September 25. RR Kabel IPO shares are anticipated to be listed on both BSE and NSE on Tuesday, September 26.

RR Kabel IPO Lead Manager and Registrar

The book running lead managers (BRLM) for the RR Kabel IPO include Axis Capital Ltd, Citigroup Global Markets India Private Ltd, HSBC Securities and Capital Markets (India) Private Ltd, and JM Financial Ltd. Link Intime India Private Ltd is the offer’s registrar.

RR Kabel IPO Reservation for Investors

The RR Kabel IPO has reserved shares as follows: not more than 50% for Qualified Institutional Buyers (QIB), not less than 15% for Non-Institutional Investors (NII), and not less than 35% for Retail Investors. Additionally, the company has allocated ₹10.8 crore worth of shares to its employees at a discounted rate of ₹98 per share compared to the final offer price.

RR Kabel IPO Grey Market Premium

As of the latest reports, the RR Kabel IPO’s grey market premium (GMP) stands at +218, indicating that the shares are trading at a premium of ₹218 in the grey market compared to the IPO price. Considering the upper end of the IPO price band, this suggests an estimated listing price of ₹1,253 per share, reflecting a 21.06% increase over the IPO price of ₹1,035.

Investors are keeping a close eye on RR Kabel’s IPO, given its impressive industry standing and growth trajectory. The company’s debut on the stock market is eagerly anticipated, promising potential gains for investors.

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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