RR Kabel IPO Subscribed 1.39 Times on Second Day of Bidding

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The Rs 1,964-crore initial public offering (IPO) of RR Kabel, backed by global private equity firm TPG, has been subscribed 1.39 times on the second day of bidding, September 14. This means that investors have bid for 1.39 times the number of shares on offer.

All types of investors showed good interest in the offer, with high net worth individuals (HNIs) bidding 2.1 times the allotted quota and qualified institutional buyers (QIBs) bidding 1.65 times the portion set aside for them. Retail investors bid for 95% of the reserved portion, which is 35% of the offer, and employees bid 1.52 times.

The consumer electrical goods manufacturer has reserved Rs 10.8 crore worth of shares for its employees, who will get those shares at a discount of Rs 98 per share to the final offer price.

The IPO comprises a fresh issue of shares worth Rs 180 crore and an offer-for-sale (OFS) of 1.72 crore shares amounting to Rs 1,784.01 crore at the upper price band. The price band for the offer is Rs 983-1,035 per share.

The Gujarat-based wire & cables and FMEG products maker will use the proceeds from the fresh issue to repay debts and for general corporate purposes.

The IPO has already been subscribed by anchor investors, who have committed to invest Rs 585.62 crore. These investors include Abu Dhabi Investment Authority, Government Pension Fund Global, HSBC Global, Carmignac Portfolio, TIMF Holdings, Morgan Stanley, HDFC Mutual Fund, ICICI Prudential, Axis Mutual Fund, Kotak Mutual Fund, SBI Life Insurance, and HDFC Life Insurance.

The IPO closes on September 15.


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