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

The company has become the first IPO firm to complete its listing under the T+2 timeline. Under this norm, an IPO firm needs to complete its listing process within three working days from the closure of the IPO.

The company’s act was voluntary and SEBI has not made the deadline mandatory for IPO firms till November 30. Currently, the companies follow the T+6 timeline for IPO listing. However, banks have been pushing to reduce the timeline from T+6 to T+3.

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

The issue price for the current public issue was set at ₹1,035 with a face value of ₹5 and a premium of ₹1,030. JM Financial is the Post Issue Banker to the IPO of RR Kabel Limited.

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 reserved not more than 50 per cent of the shares for qualified institutional buyers (QIB) and 15 per cent for non-institutional investors (NII), while 35 per cent of the offer is reserved for retail investors.

The company had 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 GMP today

According to market participants, the grey market premium (GMP) of RR Kabel IPO today is ₹96. This indicates RR Kabel shares are trading at a premium in the grey market today (September 19), a day ahead of their listing.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of RR Kabel’s IPO share price is ₹1,131, which is 9.3 per cent higher than the IPO price of ₹1,035.

RR Kabel IPO details

The ₹1,964.01 crore worth RR Kabel IPO opened for public subscription on September 13 and closed on September 15. It comprised a 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 offloaded 1.29 crore equity shares, while public shareholder Ram Ratna Wires sold its entire shareholding of 13.64 lakh shares.

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

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

RR Kabel IPO was subscribed 18.69 times overall. The QIB portion was subscribed 52.26 times, NII was subscribed 13.23 times, and retail was subscribed 2.13 times.

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

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Updated: 19 Sep 2023, 12:22 PM IST