RR Kabel makes a positive start on the bourses, lists at Rs 1180

On September 20, shares of consumer electrical products company RR Kabel listed on the bourses at a 14% premium to the issue price. The shares began trading on the NSE at Rs 1,180 and the BSE at Rs 1,179, respectively, while the issue price was Rs 1,035.

Given the strong subscriber numbers and excellent equity market conditions, analysts predicted a 10-15% premium. However, they stated that the stock's further potential may be limited by weak financials and the large offer-for-sale portion.

The RR Kabel initial public offering was subscribed 18.69 times, with qualified institutional investors bidding 52.26 times the allotted quota. High-net-worth individuals as well as retail investors bid 13.23 times and 2.13 times the reserved portion, respectively.

The manufacturer of fans and lights raised Rs 1,964.01 crore through the IPO, which included a fresh issue component worth Rs 180 crore in shares and an offer for sale (OFS) by six shareholders, including promoter Mahendrakumar Rameshwarlal Kabra and investor TPG Asia VII SF Pte Ltd, worth Rs 1,784.01 crore in shares.

It was the first company to list shares on the bourses two days after the issue closed.