RR Kabel IPO sails through on day 2 of the offer

14 Sep 2023 , 08:33 AM

On the second day of bidding, RR Kabel’s public issue, valued at Rs 1,964 crore and supported by the global private equity firm TPG, has garnered substantial attention from investors. The offering witnessed an impressive subscription rate of 1.39 times its size on September 14, with a total of 1.85 crore equity share bids submitted against the available 1.33 crore shares.

Diverse categories of investors displayed a keen interest in the offering as it approached its closure on September 15. Notably, high-net-worth individuals have subscribed to their allocated quota at a rate 2.1 times higher than the allotted shares. Similarly, qualified institutional buyers (QIBs) demonstrated strong demand, oversubscribing their portion by 1.65 times. These allocations accounted for 15% and 50% of the total offering, respectively.

Retail investors have also actively participated in the bidding process, placing bids for 95% of the shares reserved for them, which constitute 35% of the total offering. Employees, too, exhibited enthusiasm by oversubscribing their share allocation at 1.52 times.

RR Kabel, a prominent manufacturer of consumer electrical goods, has set aside shares worth Rs 10.8 crore for its employees, who will have the privilege of acquiring these shares at a discounted price of Rs 98 per share, relative to the final offer price.

This initial public offering encompasses a fresh issue of shares valued at Rs 180 crore and an offer-for-sale (OFS) of 1.72 crore shares, amounting to Rs 1,784.01 crore at the upper price band.

The price range for the offering, which commenced on September 13, is set at Rs 983-1,035 per share.

RR Kabel, headquartered in Gujarat, specializes in wire and cable products along with fast-moving electrical goods (FMEG). The proceeds from the fresh issue will be utilized to retire debts and support general corporate objectives.