TPG-Backed RR Kabel IPO Subscribed Nearly 19 Times on Final Day

15 Sep 2023 , 10:19 PM

The initial public offering (IPO) of RR Kabel, backed by global private equity firm TPG, received a strong response from investors on the final day of bidding, September 15. The subscription rate reached an impressive 18.69 times, with investors purchasing 24.89 crore equity shares against an IPO size of 1.33 crore shares.

Qualified institutional buyers (QIBs) and high net worth individuals, who had reservations of 50% and 15% in the offer, respectively, subscribed to shares 52.26 times and 13.23 times their allocated quotas.

Retail investors showed solid interest, buying 2.13 times the portion set aside for them, which represents 35% of the issue size, while employees subscribed 2.69 times the reserved portion.

RR Kabel, a manufacturer of consumer electrical products based in Gujarat, has reserved Rs 10.8 crore worth of shares for its employees, who will receive these shares at a discount of Rs 98 per share to the final issue price.

The company aims to raise Rs 180 crore through its fresh issue component and Rs 1,784.01 crore through the offer-for-sale (OFS) portion, at the upper price band.

The price band for the IPO, which opened on September 13 and was subscribed 1.4 times by September 14, was set at Rs 983-1,035 per share.

Promoters Mahendrakumar Rameshwarlal Kabra and the promoter group, along with public shareholders Ram Ratna Wires and TPG Asia VII SF Pte Ltd, will be selling shares in the OFS.

According to the IPO schedule, RR Kabel, in consultation with merchant bankers, will finalize the basis of allotment of IPO shares by September 21 and credit the equity shares to the demat accounts of eligible investors by September 25. Refunds for unsuccessful investors will be credited to their bank accounts by September 22.