RR Kabel IPO Fully Subscribed By 1.4x On Day 2; Institutional Investors, HNIs, Employees Top Bidders

RR Kabel IPO fully subscribed on the second day of its offer, tapped by qualified and non-institutional investors. The company which launched its Rs 1,964 crore worth of initial public offering (IPO) on September 13, will close for subscriptions on September 15. The proposed equity shares in the issue will be listed on BSE and NSE.

As per data from NSE, the IPO received bids of 1,85,71,364 equity shares against its offered size of 1,33,17,737 equity shares, registering a subscription of 1.39x. The portion for Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) oversubscribed by 1.65 times and 2.10 times respectively.

Also, the portion reserved for employees subscribed by 1.51 times, however, the retail individual investors category subscribed 95% of the reserved portion.

Of the total issue size, 50% will be reserved for QIBs, while 15% to be kept for NIIs, and the rest of 35% for RIIs. The company is offering shares worth Rs 10.8 crore to its eligible employees as well.

Meanwhile, on September 14, the grey market premium (GMP) for the IPO was Rs 118 per share. As per the TopShareBrokers, with the price band of 1035.00, R R Kabel IPO's estimated listing price is ₹1153 (cap price + today's GMP). The expected percentage gain/loss per share is 11.40%.

The IPO includes a fresh issue worth Rs 180 crore and an offer for sale (OFS) of up to 1,72,36,808 shares. The company is looking to raise Rs 1,964 crore from the IPO.

The selling shareholders under the OFS are -- Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra, Kabel Buildcon Solutions, Ram Ratna Wires, and TPG Asia VII SF.

Further, the price band for the IPO is fixed at Rs 983 to Rs 1,035 per equity share. Under the employees' reservation portion, RR Kabel is also offering a discount of Rs 98 per equity share to its eligible employees who will be bidding in the IPO. For the IPO, bids can be made for a minimum of 14 equity shares and in multiples of 14 equity shares thereafter.

RR Kabel plans to use the proceeds from fresh issues for repayment of borrowings availed from m banks and financial institutions. Also, a part of the proceeds will be used for general corporate purposes.

RR Kabel is one of the leading companies in the Indian consumer electrical industry (comprising wires and cables and fast-moving electrical goods ("FMEG")), with an operating history of over 20 years in India. The company is the fastest-growing consumer electrical company among our peers in India, growing at a CAGR of 33.0% between Fiscal 2020 and Fiscal 2022.

RR Kabel garnered Rs 585.62 crore from anchor investors on September 12. Marquee Anchor Investors included Abu Dhabi Investment Authority, Government Pension Fund Global, HSBC Global, Ashoka Whiteoak ICAV, Carmignac Portfolio, TIMF Holdings, 3P India Equity Fund, Elara India Opportunities Fund, and Morgan Stanley Asia (Singapore).

According to Chittorgarh's report, after the IPO, the basis of allotment of equity shares is likely to be held on September 21, followed by initiation of refunds on September 22, and credit of shares in demat accounts on September 25. Accordingly, the listing is expected on September 27.

Lastly, book-running lead managers for the IPO are Axis Capital, HSBC Securities Markets (India), Citigroup Global Markets, and JM Financial. Further, Link Intime India is the registrar of the issue.