RR Kabel IPO Subscribed 18.69 Times On Day 3
The IPO has been subscribed 18.69 times, as of 7 p.m. on Friday.
RR Kabel Ltd. launched its initial public offering on Sept. 13, and the offer will be open till Sept. 15.
The IPO was subscribed 25% on day 1 and 1.40 times on day 2.
The Mumbai-based wire and cable manufacturer plans to raise Rs 180 crore via 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 on Sept. 6.
Apart from the promoter and other selling groups, TPG Asia VII SF will be selling 1.29 crore shares in the offer for sale.
Issue Details
Issue opens: Sept. 13.
Issue closes: Sept. 15.
Fresh issue size: Rs 180 crore.
Offer for sale size: Rs 1,784 crore.
Total issue size: Rs 1,964 crore (at the upper price band).
Face value: Rs 5 apiece.
Fixed price band: Rs 983 to Rs 1,035 per share.
Lot size: 14 shares.
Issue type: Book-built issue.
Listing: NSE, BSE.
A discount of Rs 98 per equity share has been offered to eligible employees bidding in the employee reservation portion of Rs 10.8 crore.
The company has not undertaken any pre-IPO placements.
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RR Kabel IPO: All You Need To Know
Business
RR Kabel operates in two key segments: wires and cables (including house wires, industrial wires, power cables, and special cables) and fast-moving electrical goods, such as fans, lighting, switches, and appliances.
In the quarter ended June, 71% of their wires and cables revenue and 97% of FMEG revenue came from business-to-consumer sales, offering a higher gross margin than business-to-business. Their wires and cables segment, established in fiscal 1999, contributed 88.56% of revenue in FY23.
They expanded into FMEG through acquisitions and organic growth, covering approximately 77% of the FMEG industry by value as of March 31, according to Technopak.
As of June 30, the total debt of the company stood at Rs 403.76 crore.
Use Of Proceeds
Repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions. The company plans to deploy Rs 136 crore for this purpose in FY24.
General corporate purposes.
Subscription Status: Day 3
The IPO has been subscribed 18.69 times, as of 7 p.m. on Friday.
Institutional investors: 52.26 times
Non-institutional investors: 13.23 times
Retail investors: 2.13 times
Employee Reserved: 2.69 times
