R R Kabel's IPO Sees 25% Subscription on First Day of Bidding

On the first day of bidding, the Initial Public Offer (IPO) for R R Kabel Limited, a manufacturer of wires and cables, saw a 25% subscription rate. The IPO garnered bids for 32,78,072 shares out of the 1,33,17,737 shares available, as reported by NSE data.

Among the investor categories, Retail Individual Investors (RIIs) subscribed at a rate of 36%, while non-institutional investors showed a 29% subscription. The IPO consists of a fresh issue valued at up to Rs 180 crore and an offer for sale of up to 1,72,36,808 equity shares.

The offer price ranges between Rs 983 and Rs 1,035 per share. At the higher end of this range, the issue is projected to raise up to Rs 1,964 crore. On September 12, TPG-backed RR Kabel Ltd announced it had raised Rs 585.62 crore from anchor investors.

The company operates five manufacturing units, including cable and wire facilities in Waghodia (Gujarat) and Silvassa (Dadra and Nagar Haveli), a commercial lighting plant in Bengaluru, and fast-moving electrical goods (FMEG) units in Roorkee (Uttarakhand) and Gagret (Himachal Pradesh). Cables and wires account for 88% of its revenue. The company intends to use Rs 136 crore of the net proceeds from the fresh issue to reduce its debt.

In FY22, RR Kabel, a division of the RR Global Group, recorded a net profit of Rs 214 crore on a revenue of Rs 4,386 crore. Axis Capital, Citigroup Global Markets India, HSBC Securities, and Capital Markets (India), along with JM Financial, are managing the offer.