RR Kable IPO subscribed 25% on day 1

13 Sep 2023 , 05:40 PM

On the inaugural day of its Initial Public Offering (IPO), R R Kabel Limited, a prominent manufacturer of wires and cables, witnessed a subscription rate of 25%. As per data from the Bombay Stock Exchange (BSE), the IPO garnered bids for 32,78,072 shares, out of the total 1,33,17,737 shares offered. Click here to subscribe the IPO.

Breaking down the subscription figures further, the Retail Individual Investors (RIIs) category exhibited a 36% subscription rate, while non-institutional investors displayed a 29% subscription rate. The IPO comprises a fresh issue amounting to Rs 180 crore and an offer for sale involving up to 1,72,36,808 equity shares.

Investors had the opportunity to participate in the IPO within a price range of Rs 983 to Rs 1,035 per share. Should the upper end of this price band be realized, the IPO could generate proceeds of up to Rs 1,964 crore. Notably, on September 12, RR Kabel Ltd, with the backing of TPG, successfully secured Rs 585.62 crore from anchor investors.

R R Kabel Limited operates five manufacturing facilities, including cable and wire units situated in Waghodia, Gujarat, and Silvassa in the Union Territory of Dadra and Nagar Haveli. Additionally, they have a commercial lighting plant in Bengaluru, along with fast-moving electrical goods (FMEG) units in Roorkee, Uttarakhand, and Gagret, Himachal Pradesh. A significant 88% of the company’s revenue is derived from its cables and wires segment. To further strengthen their financial position, R R Kabel Limited intends to utilize Rs 136 crore of the net proceeds from the fresh issue to reduce its outstanding debt.