RR Kabel IPO Opens for Subscription | Entrepreneur

On Wednesday, RR Kabel, a major player in the electrical sector, announced it will be opening its Initial Public Offering (IPO) for subscription from September 13 to September 15, 2023. Founded nearly three decades ago, RR Kabel has now diversified into multiple business verticals including Wires and cables, Switches, Fans, Lighting, switchgear and Appliances.
The firm plans to raise INR 180 Crores by offering 17,236,808 Equity shares in the market.

The shares were made available to anchor investors on Tuesday. According to reports, the raise fund is INR 585.62 crore.

Retail investors can apply for a minimum of 14 Equity Shares and in multiples of 14 Equity Shares thereafter at a price band of INR 983 to INR 1,035.

According to the official release, RR Kabel will utilize the raised funds towards repayment or prepayment, in full or in part, of borrowings done from banks and financial institutions worth INR 1,360 million and other general corporate purposes.

Additionally, a generous number of equity shares worth INR 108 million will be allocated under Employee Reservation Portion. The ‘Net Offer’ will be at a discount of INR 98 to eligible employees. The Offer for Sale equity shares comprise 754,417 Equity Shares by Mahendrakumar Rameshwarlal Kabra; 754,417 Equity Shares by Hemant Mahendrakumar Kabra; 754,417 Equity Shares by Sumeet Mahendrakumar Kabra; up to 707, 200 Equity Shares by Kabel Buildcon Solutions Private Limited, up to 1,364,480 Equity Shares by Ram Ratna Wires Limited, and up to 12,901,877 Equity Shares by TPG Asia VII SF Pte. Ltd.

The process is being assisted by Axis Capital Ltd, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited and JM Financial Limited as the book-running lead managers.

The company ended FY22 with a net profit of INR 214 crore and revenue of INR 4,386 crore. From April to June, the company reportedly clocked revenue of INR 1,613 crore and a profit of INR 74.3 crore.