Shares of RR Kabel Ltd. debuted at Rs 1,180 apiece on the National Stock Exchange, a premium of 14% to their IPO price of Rs 1,035 apiece. On the BSE, the shares listed at Rs 1,179, a premium of 13.91%.
The shares ended at a premium of 15.62% over the IPO price, and gained 1.50% from their listing price to end at Rs 1,196.65 apiece.
The IPO was subscribed 25% on day 1, 1.40 times on day 2, and 18.6 times on the final day. The bids were led by institutional investors, who subscribed 52.26 times, followed by non-institutional investors at 13.23 times. Retail investors witnessed a subscription of 2.13 times and the employee reserved portion saw a subscription at 2.69 times
The company raised Rs 585.62 crore from anchor investors ahead of its IPO. The company allocated 56,58,201 equity shares to 54 entities at an average price of Rs 1,035 apiece, according to BSE circular.
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.
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