RR Kabel IPO Gets 18.64 Times Subscription on Final Day

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The initial public offering (IPO) of RR Kabel, a consumer electrical products maker backed by global private equity firm TPG, has received a good response from investors on the final day of bidding. The subscription rate stood at 18.64 times, with participants purchasing 24.83 crore equity shares against an IPO size of 1.33 crore shares.

The QIB and HNI categories saw the highest subscription, with bids 52.26 times and 13.2 times the reserved quota, respectively. Retail investors bought 2.05 times the portion set aside for them, and employees 2.63 times the reserved portion.

The company aims to raise Rs 180 crore via its fresh issue component and Rs 1,784.01 crore via offer-for-sale (OFS) portion, at the upper price band. The price band for the offer has been fixed at Rs 983-1,035 per share.

The wires & cables and FMEG products manufacturer will be utilizing the net fresh issue proceeds for the debt reduction worth Rs 136 crore, and general corporate purposes.

The much-awaited listing of its equity shares on the BSE and NSE will commence with effect from September 26.

Its IPO shares were available at a premium of around 10-12 percent over the upper price band, in the grey market, analysts said on anonymity. The grey market is an unofficial platform for trading in IPO shares till the listing.

Here are some additional points that I would like to add to the article:

  • The high subscription for the QIB and HNI categories is indicative of the strong interest from institutional investors in the company.
  • The lower subscription from retail investors could be due to a number of factors, including the volatility in the company’s financial performance and the fact that most of the funds are flowing to the selling shareholders.
  • The company is expected to list on the BSE and NSE on September 26.
  • The grey market premium suggests that investors are optimistic about the company’s prospects.

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