- The IPO comprises fresh issue of equity shares of up to ₹180 crore and an Offer For Sale (OFS) of more than 1.72 crore equity shares by promoters and other shareholders
- At the upper price band of the issue, the IPO will fetch up to ₹1,964 crore
- The Anchor Investor Bidding Date shall be Tuesday, September 12, 2023
- A discount of ₹98 per Equity Share is being offered to Eligible Employees bidding in the Employee Reservation Portion
- Bids can be made for a minimum of 14 Equity Shares and in multiples of 14 Equity Shares thereafter
NE BUSINESS BUREAU
AHMEDABAD, SEPT 9
Leading wire and electrical cable manufacturer RR Kabel Ltd, which is backed by private equity major TPG, on Saturday said it has fixed a price band of ₹983-1,035 per share for its Initial Public Offering (IPO).
The IPO comprises fresh issue of equity shares of up to ₹180 crore and an Offer For Sale (OFS) of more than 1.72 crore equity shares by promoters and other shareholders.
At the upper end of the price band, the issue will fetch up to ₹1,964 crore, Rajesh Babu Jain, the chief financial officer of the Gujarat-based company, said.
The Anchor Investor Bidding Date shall be Tuesday, September 12, 2023. The Offer will open on Wednesday, September 13, 2023 for subscription and will close on Friday, September 15, 2023.
“The company runs five manufacturing units —one each cable and wire units in Wagodia in Gujarat and in the Union Territory of Silvasa, and a commercial lightings plant in Bengaluru and one each fast moving electrical goods (FMEG) units in Roorki in Uttarakhand and Gagret in Himachal Pradesh,” the managing director Shreegopal Kabra said, adding as much as 88 per cent of its revenue still come from cables and wires.
Speaking with navjeevanexpress.com, Shreegopal Kabra, said, “We have a dedicated research and development team which constantly upgrades the existing products and also develops new products. Our products are exported to 63 countries and we comply with the stringent quality norms of the respective countries. Also our domestic consumers are supplied with world-class quality products.”
Those selling shares in the OFS include Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra, Kabel Buildcon Solutions Pvt Ltd and Ram Ratna Wires Ltd.
Private equity firm TPG Capital, which holds a 21 per cent stake in RR Kabel, will partially sell its stake in the company under the OFS.
The company has also reserved ₹10.8 crore worth of shares for its eligible employees who will receive shares at a discount of ₹98 per share on the final offer price.
The company proposes to utilise ₹136 crore of the net proceeds from the fresh issue to pare down, in full or in part, debt availed from banks and financial institutions.
Investors can bid for a minimum of 14 equity shares and in multiples of 14 equity shares thereafter. RR Kabel, a part of RR Global Group, posted a net profit of ₹214 crore and revenue of ₹4,386 crore in 2021-22.
Axis Capital Ltd, Citigroup Global Markets India Pvt Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd and JM Financial Ltd are the book-running lead managers to the issue. The equity shares of the company will be listed on the BSE and the NSE.
