RR Kabel IPO: The initial public offering (IPO) of wires and cables manufacturer RR Kabel Ltd, which was open for subscription between September 13 and September 15, received a decent 18.69 times subscription on the final day of bidding. The Rs 1,964-crore IPO offered 1,33,17,737 equity shares.
RR Kabel IPO share allotment will take place on September 21. Its shares will be listed on BSE and NSE on September 26.
RR Kabel IPO’s non-institutional investor quota was subscribed 13.23 times, while the category for retail individual investors (RIIs) got 2.13 times subscription and qualified institutional buyers (QIBs) 52.26 times. On the first day on Wednesday, the IPO was subscribed just 25 per cent.
RR Kabel IPO GMP
According to market observers, RR Kabel is currently trading Rs 115 higher in the grey market. The Rs 115 grey market premium or GMP is about 11 per cent higher than its upper issue price of Rs 1,035 per share. This means the grey market is expecting an 11 per cent listing gain from the public issue.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
About RR Kabel IPO
The IPO has a fresh issue of up to Rs 180 crore and an offer for sale of up to 1,72,36,808 equity shares.
The price range for the RR Kabel IPO was Rs 983-1,035 per share. At the upper end of the price band, the issue will fetch up to Rs 1,964 crore.
The IPO allotment will take place on September 21. It will be listed on BSE and NSE on September 26.
The company runs five manufacturing units – one each cable and wire units in Waghodia in Gujarat and in Silvassa in the Union Territory of Dadra and Nagar Haveli, and a commercial lightings plant in Bengaluru and one each fast moving electrical goods (FMEG) units in Roorkee in Uttarakhand and Gagret in Himachal Pradesh. As much as 88 per cent of its revenue comes from cables and wires.
The company proposes to utilise Rs 136 crore of the net proceeds from the fresh issue to pare down debt.
RR Kabel, a part of the RR Global Group, had a net profit of Rs 214 crore on a revenue of Rs 4,386 crore in FY22.
Axis Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India) and JM Financial are the managers to the offer.
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