RR Kabel IPO Receives 25% Subscription on Day 1

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The initial public offering (IPO) of RR Kabel, the wire and cable manufacturer, received bids for 32.87 lakh equity shares on September 13, the first day of bidding. This is equivalent to 25% of the IPO size of 1.33 crore shares.

Retail investors have subscribed 36% of the portion set aside for them, while the reserved portion of employees was subscribed 58%. High networth individuals and qualified institutional buyers (QIB) have subscribed 29% and 0.2% of their portion, respectively.

The price band for the offer is Rs 983-1,035 per share. Eligible employees will get shares at a discount of Rs 98 per share to the final issue price. The offer closes on September 15.

The global private equity giant TPG-backed company intends to raise Rs 1,964.01 crore via a maiden public issue at the upper price band. The offer comprises a fresh issuance of shares worth Rs 180 crore and an offer-for-sale of 1.72 crore shares worth Rs 1,784.01 crore by six selling shareholders including promoter Mahendrakumar Rameshwarlal Kabra, and investor TPG Asia VII SF Pte Ltd which holds 16.67 percent stake in the company.

Promoters hold 66.42 percent shares in RR Kabel and the remainder stake is held by public shareholders including TPG, the largest public shareholder in the company.

The Gujarat-based consumer electrical product maker will spend the fresh issue proceeds mainly for repaying debt amounting to Rs 136 crore, and the remainder on general corporate purposes.

RR Kabel has already mobilised Rs 585.62 crore of the total IPO fund raising, via its anchor book, a part of QIB, on September 12, a day before the issue opening.

Marquee investors who participated in the anchor book included Carmignac Portfolio, HSBC Global, Abu Dhabi Investment Authority, Ashoka Whiteoak ICAV, Government Pension Fund Global, TIMF Holdings, Elara India Opportunities Fund, Morgan Stanley Asia (Singapore), ICICI Prudential, Axis Mutual Fund, HDFC Mutual Fund, Aditya Birla Sun Life Trustee, Kotak Mutual Fund, and Franklin Mutual Fund.

RR Kabel is the fastest-growing consumer electrical company among its peers in India, growing at a CAGR of 43.4 percent during FY21-FY23.


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