R R Kabel IPO subscribed 18.69 times

Published on Sep 15, 2023 17:59

The initial public offer (IPO) of R R Kabel received bids for 24,88,98,328 shares as against 1,33,17,737 shares on offer, according to stock exchange data at 17:57 IST on Friday (15 September 2023). The issue was subscribed 18.69 times.

The issue opened for bidding on Wednesday (13 September 2023) and it will close on Friday (15 September 2023). The price band of the IPO is fixed at Rs 983-1,035 per share. An investor can bid for a minimum of 14 equity shares and in multiples thereof.

The offer consists of a fresh issue of equity shares worth up to Rs 180 crore and an offer-for-sale (OFS) of up to 1,72,36,808 equity shares of Rs 5 face value by promoter shareholders, other selling shareholders and investor selling shareholders.

Of the net proceeds from fresh issue, about Rs 136 crore will be used for repayment and prepayment, in full or part, of certain borrowings availed by the company and balance is for general corporate purposes.

Total borrowing as end of June 2023 stood at Rs 403.765 crore.

Ahead of the IPO, R R Kabel on Tuesday, 12 September 2023, raised Rs 585.62 crore from anchor investors. The board allotted 56.58 lakh shares at Rs 1,035 each to 54 anchor investors.

R R Kabel (RRKL) is one of the leading players in the Indian consumer electrical industry engaged in the business of selling wires & cables (including house wires, industrial wires, power cables and special cable) and fast-moving electrical goods (FMEG) including fans, lighting, switches and appliances. The company sells its products under three brands, RR Kabel, RR and Luminous Fans & Lights.

The company reported a net profit of Rs 73.68 crore and net sales of Rs 1,597.31 crore for the three months ended on 30 June 2023.