RR Kabel IPO: Issue subscribed over 2 times on last day; check GMP, subscription status, other key details

RR Kabel is a prominent player in the Indian consumer electrical industry, specializing in wires & cables (W&C) and fast-moving electrical goods (FMEG) for over two decades.

In the RR Kabel IPO, the company has reserved not more than 50% of the shares for Qualified Institutional Buyers (QIB) and 15% for Non Institutional Investors (NII), while 35% of the offer is reserved for Retail Investors.

The company has also reserved 1.15 lakh shares for its employees and is offering shares to them at a discount of ₹98 per share to the final offer price.

RR Kabel IPO Subscription Status

RR Kabel IPO has been subscribed 2.17 times so far on Friday, the third and the last day of the bidding process. The public issue received bids for 2.88 crore shares against 1.33 crore equity shares on offer, according to data from the NSE till 11:30 am.

The retail investors’ portion was subscribed 1.24 times, the NII portion was booked 3.50 times, while the employee portion was subscribed 1.84 times. The QIB quota was subscribed 2.80 times so far.

Also Read: Yatra online IPO versus RR Kabel IPO versus SAMHI Hotels IPO versus Zaggle IPO: Which one should you buy?

RR Kabel IPO details

The ₹1,964.01 crore worth RR Kabel IPO opened for public subscription on September 13 and will close today. It comprises fresh issue of equity shares worth ₹180 crore and an offer for sale (OFS) of 1.72 crore equity shares worth ₹1,784 crore by the promoters and investors. 

The RR Kabel IPO price band is ₹983 to ₹1,035 per share.

In the OFS, TPG Asia VII SF Pte Ltd will offload 1.29 crore equity shares, while public shareholder Ram Ratna Wires will sell its entire shareholding of 13.64 lakh shares.

Other selling shareholders in the OFS include promoters Mahendrakumar Kabra, Hemant Kabra, Sumeet Kabra and Kabel Buildcon Solutions, a part of the promoter group.

RR Kabel IPO lot size is 14 shares and the minimum investment amount required by retail investors is ₹14,490.

The company plans to utilise the fresh issue proceeds mainly for repaying debt amounting to ₹136 crore, and for general corporate purposes.

Also Read: RR Kabel IPO: GMP, price band, dates and other key details to know

RR Kabel IPO share allotment is likely to be finalised on September 21 and the company is expected to initiate refunds on September 22, while credit the shares to the demat accounts of eligible allottees on September 25.

RR Kabel IPO share listing is likely to take place on September 26 on BSE and NSE.

RR Kabel IPO GMP today

RR Kabel IPO GMP today, or grey market premium today, is ₹118  per share. This indicates RR Kabel shares are trading at a premium of ₹118 in the grey market on Friday, according to topsharebrokers.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of RR Kabel IPO share price is ₹1,153 apiece, which is 11.4% higher than the IPO price of ₹1,035.

RR Kabel IPO Review

RR Kabel is the fifth largest player in the Indian wires and cables industry by value and the fastest growing consumer electrical company in India with an integrated in house manufacturing. In 2022, the company added premium and mid premium fans and lights post the Luminous Home Electrical Acquisition. 

“The company’s majority of the revenue is generated from wires and cables with a 40% share in the segment. The company has 74% of the revenues coming from the B2C segment with a strong distribution network. In wires and cables, the company witnessed revenue growth of 63% in FY2022 with a volume growth of 23% and a growth of 21% with a volume growth of 20% in FY2023. However, the margin got impacted due to commodity prices. Based on the EPS of FY2023, the company seems fairly priced, we recommend to subscribe for the long term,” said Canara Bank Securities.

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Updated: 15 Sep 2023, 11:34 AM IST