RR Kabel raises Rs 585.62 crore from anchor investors ahead of IPO

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Gujarat-based wire & cables manufacturing company RR Kabel has raised Rs 585.62 crore from anchor investors, ahead of its public issue opening on September 13.

A total of 54 investors participated in the anchor book, including marquee investors such as Abu Dhabi Investment Authority, Government Pension Fund Global, HSBC Global, Ashoka Whiteoak ICAV, Carmignac Portfolio, TIMF Holdings, 3P India Equity Fund, Elara India Opportunities Fund, and Morgan Stanley Asia (Singapore).

Domestic investors such as HDFC Mutual Fund, ICICI Prudential, Axis Mutual Fund, Aditya Birla Sun Life Trustee, Kotak Mutual Fund, Nippon Life India Trustee, Mirae Asset, Franklin Mutual Fund, Bandhan Mutual Fund, Tata Mutual Fund, SBI Life Insurance, HDFC Life Insurance Company, and Max Life Insurance also invested in RR Kable via the anchor book.

The global private equity firm TPG-backed company said it has finalized allocation of 56,58,201 equity shares to anchor investors at a price of Rs 1,035 per share.

The price band for the offer has been fixed at Rs 983-1,035 per share.

The Rs 1,964-crore public issue comprises fresh issue of equity shares worth Rs 180 crore and an offer-for-sale (OFS) of 1,72,36,808 equity shares worth Rs 1,784 crore, at the upper price band, by the promoters and investors.

The issue will close on September 15.

The consumer electrical product maker will use net fresh issue proceeds mainly for repaying debt amounting to Rs 136 crore, and the remainder on general corporate purposes. It had an outstanding borrowings of Rs 777.3 crore as of August 28.

Key takeaways:

  • RR Kabel has raised Rs 585.62 crore from anchor investors ahead of its IPO.
  • The anchor book was subscribed 1.1 times.
  • The price band for the IPO is Rs 983-1,035 per share.
  • The IPO comprises fresh issue of equity shares worth Rs 180 crore and an offer-for-sale (OFS) of Rs 1,784 crore.
  • The issue will close on September 15.
  • The company will use the net proceeds to repay debt and for general corporate purposes.

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