Electrical Goods Company R R Kabel files DRHP with SEBI for the proposed IPO; Key Details here

R R Kabel is into Consumer Electrical Goods and is looking raise funds through Fresh Issue and Offer for Sale

R R Kabel to raise Fresh Issue aggregating up to Rs. 225 crores and an Offer for Sale 17,236,808 Equity Shares through public issue IPO

R R Kabel IPO: R R Kabel Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 5 per share via initial public offering.

Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 225 crores and an Offer for Sale up to 17,236,808 Equity Shares. Axis Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets, JM Financial have been appointed as lead merchant bankers for the proposed IPO. It has appointed Link Intime India Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 225 Crs and offer-for-sale (OFS) of up to 17,236,808 equity shares by Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra, Kabel Buildcon Solutions Private Limited, Ram Ratna Wires Limited and TPG Asia VII SF Pte. Ltd. who will offload Up to 754,417Equity Shares, Up to 754,417 Equity Shares, Up to 754,417 Equity Shares, Up to 707,200Equity Shares, Up to 1,364,480Equity Shares and Up to 12,901,877Equity Shares respectively...

Objects of the issue:
1) Repayment or prepayment, in full or in part, of borrowings of around Rs. 170 crores , and 2) General corporate purposes.

Promoters of R R Kabel are Tribhuvanprasad Rameshwarlal Kabra, Shreegopal Rameshwarlal Kabra, Mahendrakumar Rameshwarlal Kabra, Kirtidevi Shreegopal Kabra,Tribhuvanprasad Kabra HUF, Kabra Shreegopal Rameshwarlal HUFand MahendraKumar Kabra HUF. and holds 66.39% stake in the company.

About Company:
Company is in the Indian consumer electrical industry (comprising wires and cables and FMEG), with an operating history of over 20 years in India. It grew at a CAGR of 33.0% between FY20-22. (Source: Technopak Report) and sell products across two broad segments including (i) wires and cables including house wires, industrial wires, power cables and special cables; and (ii) FMEG including fans, lighting, switches and appliances.

About Industry:
India is the third largest producer and the second largest consumer of electricity in the world. (Source: Technopak Report)Consumer electrical (wires and cables and fast moving electrical goods) industry is one of the important aspects of the Indian economy, contributing approximately 8% to the country’s manufacturing production, approximately 1.5% to India’s GDP and approximately 1.5% to India’s exports. (Source: Technopak Report)The consumer electrical industry consisting of wires and cablesand FMEGs was estimated at approximately ₹161,500 millionin Fiscal 2022 and is expected to grow at a CAGR of approximately11% till Fiscal 2027 to reach a market value of approximately ₹266,500 million.(Source: Technopak Report).

Source: SEBI, BSE, NSE, DRHP, R R Kabel, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.