Upcoming IPO: RR Kabel Rs 1,964 Crore Public Offer To Open Next Week; 10 Key Points

Leading consumer electrical firm, RR Kabel is set to launch its initial public offering (IPO) next week. The public offer will be a mixture of fresh issue and offer for sale. The company plans to raise 1,964 crore through the issue. It has fixed its price band for the offer, and will be available for subscription from September 13th to 15th. The company will be listed on BSE and NSE.

Here are 10 key pointers of the IPO:

1. The IPO comprises a fresh issue of equity shares aggregating up to Rs 180 crore and an offer for sale up to 17,236,808 equity shares by selling shareholders. The offer also includes a reservation of Equity Shares aggregating up to Rs 10.8 crore hat will be available for allocation on a proportionate basis to certain eligible employees of the company.

2. The public offer will open on September 13 and will close on September 14. The anchor investor bidding Date shall be Tuesday, September 12, 2023.

3. The Offer for Sale comprises of up to 754,417 Equity Shares by Mahendrakumar Rameshwarlal Kabra; up to 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

4. The Price Band of the Offer has been fixed at ₹ 983 to ₹1,035 per Equity Share. The Floor Price is 196.60 times and the Cap Price is 207.00 times the face value of the Equity Shares. A discount of Rs 98 per Equity Share is being offered to Eligible Employees bidding in the Employee Reservation Portion

5. Bids can be made for a minimum of 14 Equity Shares and in multiples of 14 Equity Shares thereafter.

6. Of the total issue size, 50% will be reserved for qualified institutional buyers (QIBs), while 15% to be kept for non-institutional investors (NIIs), and the rest of 35% for retail individual investors (RIIs).

7. RR Kabel proposes to utilize the proceeds raised through the Fresh Issue towards Repayment or prepayment, in full or in part, of borrowings availed by the Company from banks and financial institutions estimated to be ₹ 1,360 million; and balance amount towards general corporate purposes.

8. 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.

9. The equity shares are being offered through the RHP and are proposed to be listed on recognized stock exchanges being BSE and NSE.

10. 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.

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.