RR Kabel Shares Make Strong Debut Despite Market Correction
RR Kabel shares closed their first day of trading on September 20 with a gain of nearly 16 percent, despite a sharp correction in the equity markets. The BSE Sensex plunged nearly 800 points on the same day.
The stock opened higher by 14 percent at Rs 1,180, but immediately came off its day’s high and touched an intraday low of Rs 1,136.80 on the NSE in morning trade. However, it recouped those losses as the day progressed and hit a day’s high of Rs 1,212.70 in the last hour of trade. The stock eventually settled at Rs 1,198, up 15.75 percent over the issue price of Rs 1,035.
RR Kabel is the first company to list its shares on the exchanges within two days of the issue closing, using the new T+2 timeline introduced by the market regulator Sebi. The old timeline for listing of shares after the IPO was T+6, which will be completely stopped with effect from December 1, 2023.
The Gujarat-based company had launched its public issue during September 13-15 and raised Rs 1,964.01 crore via the offer. The price band for the offer was Rs 983-1,035 per share.
RR Kabel operates in two broad segments: wires & cables, which contributed 71 percent to its topline in the quarter ended June FY24, and FMEG (fast moving electrical goods), including fans, lights, switches and appliances.
The company’s strong debut on the bourses is a positive sign for the IPO market, which has been subdued in recent months. It also reflects the investor interest in the wires & cables and FMEG sectors, which are expected to benefit from the government’s focus on infrastructure development and electrification.
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