RR Kabel IPO: Issue subscribed over 18 times on last day; check GMP, subscription status, other key details
The RR Kabel IPO had substantial investor engagement and was completely subscribed. Retail component subscribed 2.13 times, whereas QIB portion subscribed 52.26 times.
The IPO for RR Kabel consists of a new issue of equity shares worth 180 crore rupees and an offer for sale (OFS) of 1.72 crore equity shares by the founders and investors for 1,784 crore rupees.
RR Kabel IPO Subscription Status: As a result of the issue receiving respectable inventor participation, RR Kabel's initial public offering (IPO) has so far been completely subscribed. The RR Kabel initial public offering began on September 13 and ends today, September 15.
For more than 20 years, RR Kabel has specialized in wires & cables (W&C) and fast-moving electrical goods (FMEG), making it a significant participant in the Indian consumer electrical sector.
In the RR Kabel initial public offering (IPO), the business has set aside not more than 50% of the shares for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Investors.
Additionally, the company has reserved 1.15 lakh shares for its employees, who are being offered shares at a price that is 98 rupees a share less than the final offer price.
IPO Subscription Status for RR Kabel
On Friday, the third and last day of the bidding process, RR Kabel IPO has received 18.69 subscriptions to date. According to data from the BSE as of 17:26 IST, bids were received for 24,88,92,434 shares out of the 1.33 crore equity shares that were offered in the public offering.
A portion for retail investors was subscribed 2.13 times, a portion for NII was booked 13.23 times, and a portion for employees was subscribed 2.69 times. 52.26 times have been subscribed to the QIB quota so far.
Information on the RR Kabel IPO
The public subscription period for the 1,964.01 crore RR Kabel IPO began on September 13 and ends today. It consists of a new equity share issue costing 180 crore rupees and an offer for sale (OFS) by the promoters and investors of 1.72 crore equity shares worth 1,784 crore rupees.
The RR Kabel IPO pricing range is between 983 and 1 035 dollars per share.
TPG Asia VII SF Pte Ltd will sell 1.29 crore equity shares in the OFS, while public stakeholder Ram Ratna Wires will sell all 13.64 lakh shares it owns.
Promoter Mahendrakumar Kabra, Hemant Kabra, Sumeet Kabra, and Kabel Buildcon Solutions, a member of the promoter group, are additional selling shareholders in the OFS.
Retail investors must invest at least 14,490 in the RR Kabel IPO, which has a lot size of 14 shares.
The company intends to use the proceeds from the fresh issue primarily to pay down debt of 136 crore as well as for other business needs.
Retail investors must invest a minimum of 14,490 for the RR Kabel IPO lot size of 14 shares.
The business intends to use the proceeds from the fresh issue primarily for general corporate operations and the repayment of debt totaling 136 crore.
Today's RR Kabel IPO GMP
The current grey market premium for the RR Kabel IPO is 118 per share. According to topsharebrokers.com, this suggests that RR Kabel shares are currently trading at a premium of 118 in the black market on Friday.
The expected listing price of the RR Kabel IPO share price is $1,153 per share, which is 11.4% more expensive than the IPO price of $1,035 when taking into account the upper end of the IPO pricing band and the current premium in the grey market.
RR Kabel IPO Review
RR Kabel is the fastest-growing consumer electrical company in India and the fifth-largest participant by value in the country's wires and cables market. It also has integrated in-house production. In 2022, following the acquisition of Luminous Home Electrical, the company introduced premium and mid-premium fans and lights.
"With a 40% market share in the segment, wires and cables account for the majority of the company's revenue. With a solid distribution network, the B2C segment generates 74% of the company's revenues. In the area of wires and cables, the company saw revenue increase by 63% in FY2022 while volume increased by 23%, and by 21% while volume increased by 20% in FY2023. The margin, however, was negatively influenced by commodities prices. We advise subscribers to purchase for the long term because the company appears to be appropriately valued based on the EPS for FY2023, according to Canara Bank Securities.
Disclaimer: Fundfortress does not endorse the opinions or suggestions expressed above by specific analysts or brokerage firms. Before making any financial decisions, we suggest investors to consult with licensed professionals.
