RR Kabel files preliminary IPO papers

Indis’a fifth largest cabel and wire maker, RR Kable, backed by TPG Capital has filed its draft prospectus with the markets regulator SEBI to raise funds through initial public offer (IPO) route on Sunday.

The company is planning to raise Rs 225 crore through fresh issue of equity shares and an offer for sale (OFS) of up to 1.72 crore equity shares by promoters and other shareholders.

Among the selling shareholders in the OFS include Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra, Kabel Buildcon Solutions Private Ltd, and Ram Ratna Wires Ltd.

TPG Asia VII SF Pte Ltd, a private equity firm from the US, holds 20.99% stake in RR Kabel and will sell some of its stake in the IPO.

RR Kabel proposes to utilize the funds from IPO towards the funding of repayment or prepayment, in full or in part, of borrowings availed by the Company from banks and financial institutions estimated to be Rs 170 crores.

Axis Capital Ltd, HSBC Securities and Capital Markets (India) Private Ltd, Citigroup Global Markets India Private Ltd, and JM Financial Ltd are the book-running lead managers for the IPO.