RR Kabel Secures Rs 585.62 Crore from Anchor Investors Ahead of IPO Launch

12 Sep 2023 , 10:58 PM

RR Kabel, a wire and cable manufacturing company based in Gujarat, successfully raised Rs 585.62 crore from anchor investors on September 12, in anticipation of its upcoming public issue.

A total of 54 investors participated in the anchor book, featuring prestigious names like 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).

On the domestic front, RR Kabel attracted investments from HDFC Mutual Fund, ICICI Prudential, Axis Mutual Fund, Aditya Birla Sun Life Trustee, Kotak Mutual Fund, Nippon Life India Trustee, Mirae Asset, Franklin Mutual Fund, Bandhan Mutual Fund, Tata Mutual Fund, SBI Life Insurance, HDFC Life Insurance Company, and Max Life Insurance, among others.

The company, backed by global private equity firm TPG, allocated 56,58,201 equity shares to anchor investors at a price of Rs 1,035 per share.

The upcoming Initial Public Offering (IPO) consists of a fresh issue of equity shares valued at Rs 180 crore and an offer-for-sale (OFS) of 1,72,36,808 equity shares worth Rs 1,784 crore (at the upper price band). The IPO subscription period will conclude on September 15.

TPG Asia VII SF Pte Ltd will be the largest seller among the selling shareholders, divesting 1.29 crore equity shares via OFS. Other selling shareholders include public shareholder Ram Ratna Wires, as well as promoters Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, and Sumeet Mahendrakumar Kabra, along with Kabel Buildcon Solutions, a part of the promoter group.

The net proceeds from the fresh issue will primarily be utilized to repay a debt of Rs 136 crore, with the remaining funds allocated for general corporate purposes. As of August 28, the company had outstanding borrowings of Rs 777.3 crore.