Institutional Investors Show Strong Interest
The Initial Public Offering (IPO) of RR Kabel, a wire and cable manufacturing company, has successfully concluded, garnering an impressive subscription rate of 18.69 times. This IPO has particularly captured the attention of institutional investors, with the reserved quota for them being oversubscribed a staggering 52.26 times. In contrast, the retail investors’ quota has seen a modest subscription rate of 2.13 times.
Institutional Investors Oversubscribe Significantly
Data from the Bombay Stock Exchange (BSE) reveals that RR Kabel’s IPO allocated 37,72,137 shares to institutional investors. Astonishingly, applications were received for a total of 19,71,19,622 shares, resulting in a subscription rate of 52.26 times for this segment.
Strong Response from Retail and Non-Institutional Investors
For non-institutional investors, 28,29,102 shares were reserved, and applications have been received for a total of 3,74,30,694 shares. This translates to a subscription rate of 13.23 times for this category. Retail investors were allocated 66,01,237 shares, with applications received for 1,40,38,192 shares, resulting in a subscription rate of 2.13 times. Even the employee quota saw robust interest, with a subscription rate of 2.69 times.
Key IPO Details
RR Kabel’s IPO was open for subscription from September 13 to September 15, 2023. The price range for the IPO was set at Rs 983 to Rs 1035 per share. The company successfully raised Rs 1964 crore through this IPO. RR Kabel is slated to be listed on the stock exchange on September 26. Notably, in the gray market, RR Kabel’s IPO is trading at a premium of Rs 118, suggesting a potential listing price of around Rs 1150.
Offer Composition
In the RR Kabel IPO, new shares worth Rs 180 crore were issued. Additionally, the company’s promoter and investor, TPG, are divesting 1.72 crore shares through an Offer for Sale. TPG Asia currently holds a 16.67 percent stake in the company, while the promoter retains a 66.42 percent shareholding.
About RR Kabel
RR Kabel is a subsidiary of RR Global, a major player in the electric sector with a presence in approximately 90 countries. In addition to wires and cables, RR Kabel manufactures electrical products such as fans and light switches. In the first quarter of the financial year 2023-24, the company reported revenue of Rs 1597.3 crore, marking a substantial increase of 29.1 percent. Furthermore, the company’s profit surged by an impressive 310 percent, reaching Rs 74.3 crore during the same period.
