RR Kabel Share Price; This IPO To Declare First Interim Dividend Since Over A Month Of Listing, Q2 Results Too

Indian consumer electricals manufacturer, RR Kabel is set to declare its first interim dividend for the first time since its listing in late September. The company's board of directors are set to meet on November 6th to consider an interim dividend proposal along with quarterly earnings for the period ending September 30, 2023. It needs to be noted that the company has fixed its record date for the dividend payout.

In its regulatory filing, RR Kabel said, "we wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Monday, 6th November 2023 to inter alia:

a) Consider, approve and take on record Unaudited Standalone and Consolidated Financial Results for the quarter and half year ended on 30th September, 2023; and

b) Consider and approve the declaration of Interim Dividend on the equity shares for the financial year 2023-24."

Further, the company said, if approved, the record date for the purpose of determining the entitlement of the equity shareholders for the said dividend shall be Friday, 17th November, 2023. Hence, RR Kabel shares will also turn ex-dividend on November 17th as well.

On BSE, RR Kabel shares ended at Rs 1,345.25 apiece, broadly muted on Monday compared to the previous closing.

The stock listed on September 20, 2023. During the listing day, the share price closed at Rs 1,196.65 apiece, up by Rs 161.65 from its IPO issue price of Rs 1,035 which is also its upper price band.

From its IPO issue price of Rs 1,035 apiece, the share price is currently up by nearly 30% on BSE. But taking into consideration its 52-week high of Rs 1,524.55 apiece, the stock is up by a whopping 47.3%. While from its 52-week low of Rs 1,137.60 apiece, the stock is still up by nearly 10% from the IPO price.

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.

The company launched its IPO on September 13th and subscription window for the issue closed on September 15. On the last day, the IPO received oversubscription of 18.69 times. The Qualified Institutional Buyers (QIBs) portion showed robust demand with oversubscription of 52.26 times, while the Non Institutional Investors (NIIs) portion subscribed by 13.23 times. Further, the Retail Individual Investors (RIIs) portion subscribed by 2.13 times, and the reserved shares for employees subscribed by 2.69 times on Day 3.

The company planned to raise Rs 1,964 crore from the IPO, at a price band of Rs 983 to Rs 1,035 per equity share.

Prabhudas Lilladher becomes the first broker on the street to initiate coverage on RR Kabel.

The brokerage in September said that it believes RR Kabel is a play on several opportunities in the W&C segment given 1) strong brand with diverse product portfolio 2) well-structured capacity expansion plans, 3) increasing dealers /distribution network and 4) distribution led export business. Although the company has grown its FMEG portfolio inorganically, yet it expects to minimize losses in coming years by transitioning towards premium markets. In FMEG, too, the company has enhanced its brand presence, positioning and manufacturing capabilities to minimize losses.

Accordingly, the brokerage estimated Revenue/EBITDA/PAT CAGR of 20.7%/38.8%/44.3% over FY23-26 led by 1) improving business mix 2) operating leverage & cost optimization 3) investments in brand building and 4) increasing distribution reach.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.