TPG-backed RR Kabel IPO to open on Sept 13, check price band and other details

The initial public offer (IPO) by RR Kabel will open for subscription on September 13, Wednesday. The company has fixed its price band at Rs 983-1,035 apiece. Investors could bid or a minimum lot of 14 equity shares and its multiples thereof. The issue will conclude on September 15, Friday.
The IPO would comprise of a sale of fresh equity shares worth Rs 180 crore. Promoters and existing shareholders of the company will offload up to 1,72,36,808 shares via offer-for-sale (OFS) route. At the upper price band of the issue, the company is looking to raise Rs 1,964 crore.

The net proceeds from the fresh issue would be utilised towards repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions and general corporate purposes. Entire proceeds from OFS will go to selling shareholders. The anchor book will open on Tuesday, September 12.

Promoters MahendraKumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra and Kabel Buildcon Solutions, along with other selling shareholders such as Ram Ratna Wires and TPG Asia VII SF will participate in OFS. Barring TPG Asia, whose average cost of acquisition is Rs 270.08 per share, others have acquired shares for Rs 1.62-7.68 apiece.

Shares worth Rs 10.80 crore have been reserved for eligible employees of the company, who will get a discount of Rs 98 per share. The company has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while 15 per cent shares will go to non-institutional investors (NIIs). Retail investors will get the remaining 35 per cent of the allocation for the issue.

Incorporated in 1995, RR Kabel provides consumer electrical products used for residential, commercial, industrial, and infrastructure purposes in two major segments, namely wires and cables including house wires, industrial wires, power cables, and special cables; and FMEG including fans, lighting, switches, and appliances.

The company has two manufacturing units located at Waghodia, Gujarat, and Silvassa, Dadra and Nagar Haveli, and Daman and Diu which primarily carry out manufacturing operations of wire and cables and switches. It also owns and operates three integrated manufacturing facilities which are located at Roorkee, Uttarakhand; Bengaluru, Karnataka; and Gagret, Himachal Pradesh.

For the financial year ended on March 31, RR Kabel reported a net profit at Rs 189.87 crore with a total revenue of Rs 5,633.64 crore. Its net profit stood at Rs 213.94 crore with a revenue from operations at Rs 4,432.22 crore in the previous financial year ended March 31, 2022.

Axis Capital, Citigroup Global Markets India, HSBC Securities & Capital Markets and JM Financial are book running lead managers to the issue, while Link Intime India has been appointed as the registrar for the issue. Shares of the company will be listed at both BSE and NSE with Tuesday, September 26 as the tentative date of listing of shares.

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