RR Kabel IPO: Shares debut at 14% premium at ₹1,180 on NSE

RR Kabel IPO opened for subscription on Wednesday, September 13, and closed on Friday, September 15. RR Kabel price band was fixed in the range between ₹983 to ₹1,035 per equity share of face value of ₹5 each.

RR Kabel IPO Subscription Status on day 3 was 18.69 times.The retail investors’ portion was subscribed 2.13 times, the NII portion was booked 13.23 times, while the employee portion was subscribed 2.69 times. The QIB quota was subscribed 52.26 times.

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

In the RR Kabel IPO, the company has reserved ₹10.8 crore worth shares for its employees. It is offering shares to employees at a discount of ₹98 per share to the final offer price.

RR Kabel has raised ₹585 crore from anchor investors a day ahead of its IPO subscription opening for bidding.

Also Read: RR Kabel IPO listing date today. GMP, experts predict listing price at ‘moderate’ premium

RR Kabel IPO details

At the upper end of the price band, RR Kabel IPO aims to raise ₹1,964.01 crore from the IPO. The IPO 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. 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.

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

As per the RHP the listed industry peers of the company are Havells India Ltd, Polycab India Ltd, KEI Industries Ltd, Finolex Cables Ltd, V-Guard Industries Ltd, Crompton Greaves Consumer Electricals Ltd, Bajaj Electricals Ltd.

“We are the fastest growing consumer electrical company among our peers in India, growing at a compound annual growth rate (CAGR) of 43.4% between Fiscal 2021 and Fiscal 2023,” said the company in its RHP.

RR Kabel IPO’s floor price is 196.60 times and the cap price is 207.00 times the face value of the equity shares.

Also Read: RR Kabel to become first IPO company to list under T+2 timeline

RR Kabel IPO GMP today

RR Kabel IPO GMP today or grey market premium is +101. This indicates RR Kabel IPO share price were trading at a premium of ₹101 in the grey market on Wednesday, 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 was ₹1,136 apiece, which is 9.76% higher than the IPO price of ₹1,035.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Also Read: RR Kabel IPO: What does the latest GMP signal ahead of listing?

Updated: 20 Sep 2023, 09:59 AM IST