RR Kabel IPO To Open On 13 SeptemberListing On Stock Exchanges On 26 September 2023

RR Cable IPO Update: The IPO (Intial Public Offering) of wire and cable manufacturing company RR Kabel is going to open on 13 September 2023 and investors can apply till 15 September. The company can raise Rs 1,000 crore from the market through IPO. RR Cable will be listed on the stock exchange on 26 September. In the month of August, the stock market regulator SEBI allowed the company to launch an IPO.

The IPO will open for anchor investors on September 12. The company has reserved 10.8 crore shares in the IPO for its employees, who will be offered shares at a discount. RR Cable will issue new shares worth Rs 180 crore in the IPO, while the company’s promoter and its investor TPG will sell 1.72 crore shares under Offer For Sale. America’s private equity firm TPG Asia will sell about 1.29 crore shares in the offer for sale. According to the draft paper filed with SEBI, TPG Asia holds 16.67 per cent stake in the company.

The promoter’s shareholding in the company is around 66.42 per cent. While there is 33.58 percent public shareholding, which also includes TPG. Out of the amount raised in the IPO, the company will repay the loan of Rs 136 crore. The remaining amount will be used for general corporate purposes. As on August 28, the company had an outstanding loan of Rs 777.3 crore.

RR Kabel is a subsidiary of Electric sector giant RR Global which has presence in around 90 countries. Apart from wire and cables, the company also manufactures electrical goods which include fans, lights switches. 71 percent of the revenue comes from wire and cable. RR Kabel is the fifth largest company in the wire and cable sector with a market share of 5 per cent by March 2023.

In the financial year 2022-23, the company’s revenue was Rs 5599 crore, which is 27.66 percent more than its first financial year. While the profit was Rs 189.9 crore, which is 11.2 percent less than its previous year. However, in the first quarter of the financial year 2023-24, the revenue has been Rs 1597.3 crore with a jump of 29.1 percent. While there has been a jump of 310 per cent in profit and it has been Rs 74.3 crore. Axis Capital, JM Financial, Citigroup Global and HSBC have been hired as investment bankers.

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