R R Kabel IPO: Consumer-Electrical Goods company IPO to begin from September 13; Key Details here

Team Updater September 08, 2023

R R Kabel is into Consumer-Electrical Goods and is looking raise funds through Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 180 crores and an Offer for Sale up to 17,236,808 Equity Shares


IPO
Fig.1 - R R Kabel to raise around Rs 1,874 crores through public issue

R R Kabel IPO is a public offering of shares by Tribhuvanprasad Rameshwarlal Kabra, Shreegopal Rameshwarlal Kabra, Mahendrakumar Rameshwarlal Kabra, Kirtidevi Shreegopal Kabra,Tribhuvanprasad Kabra HUF, Kabra Shreegopal Rameshwarlal HUFand MahendraKumar Kabra HUF.. The IPO will open on September 13 and will close on September 15. The price band is ₹983 to ₹1,035 per share and the lot size is 14 shares. The issue size is ₹1,964.01 crore. The shares are expected to be listed on NSE, BSE on September 26 (^). Some additional information that you may find useful are: RR Kabel Revenue grew at a CAGR of 33% during FY20-22 (v/s Finolex Cables/Polycab/KEI Industries/Havells India/Bajaj Electricals/Crompton/V-Guard grew at 14.4%/17.6%/8.2%/21.5%/-1.8%/9.2%/18.2% for respectively during the same period.: (**) - based on higher price band (^) indicative date


Quick Pointers


  • Promoters of the company are Tribhuvanprasad Rameshwarlal Kabra, Shreegopal Rameshwarlal Kabra, Mahendrakumar Rameshwarlal Kabra, Kirtidevi Shreegopal Kabra,Tribhuvanprasad Kabra HUF, Kabra Shreegopal Rameshwarlal HUFand MahendraKumar Kabra HUF. Currently promoters hold 66.39% stake in the company.
  • Company aims to raise between Rs 1,874 to 1,964 crs through this IPO.
  • The net proceeds of the issue will be utilized to 1) Repayment or prepayment, in full or in part, of borrowings of around Rs. 136 crores and and 2) General corporate purposes
  • Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 12-Sep-23.
  • Price band for the IPO has been fixed at Rs 983 to 1,035 per share and bid lot are in multiple of 14 shares. The implied market cap post-issue at Rs 11,098 to 11,676 crs.
  • As per the tentative schedule, allotment date of this IPO is most likely on September 21 and share are expected to be listed on NSE, BSE on September 26.
  • Company has direct peer competition in electrical goods market, In Listed space peers includes Havells India, Polycab India, KEI Industries, Finolex Cables, V-Guard Industries, Crompton Greaves Consumer Electricals and Bajaj Electricals amongst others.
  • Axis Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets, JM Financial has been appointed as Merchant Banker to the issue. Link Intime India Pvt. Ltd. has been appointed as official registrar of the issue.

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IPO Quick Snapshot


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.

RR Kabel Revenue grew at a CAGR of 33% during FY20-22 (v/s Finolex Cables/Polycab/KEI Industries/Havells India/Bajaj Electricals/Crompton/V-Guard grew at 14.4%/17.6%/8.2%/21.5%/-1.8%/9.2%/18.2% for respectively during the same period.

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).


Promoters of the company are Narendra Joharimal Goliya Currently promoters hold 80.67% stake in the company.

IPO Key Details:


IPO Dates


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IPO Issue and Subscription Details


Financials


Valuation


IPO Lead Manager Details


IPO Registrar and Transfer Agent (RTA) Details


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Check Allotment Status of IPO

Please check below or visit Link Intime link at here to check allotment status of IPO

Source: DRHP, RHP, Company, Company Website | Logo/Images published in the article may be copyright of respective companies.

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