RR Kabel, which is backed by TPG is preparing for its stock market debut through an offering (IPO) that will be priced at a range of Rs 983, to Rs 1,035 per share. The IPO includes a combination of shares and an offer for sale to raise Rs 1,964 crore. Subscriptions for the IPO will be open from September 13 to September 15. There will be an anchor book, on September 12.
RR Kabel, a global private equity firm backed by TPG, has announced the price range for its debut public offering through a newspaper advertisement. The price band is set at Rs 983-1,035 per share, indicating a fundraising target of Rs 1,964 crore at the upper end of the range.
This initial public offering (IPO) consists of two components: a fresh issue of equity shares valued at Rs 180 crore and an offer for sale (OFS) of 1,72,36,808 equity shares worth Rs 1,784 crore at the upper price band. The OFS will be carried out by the company’s promoters and investors.
Among the selling shareholders, TPG Asia VII SF Pte Ltd is the largest, planning to sell 1.29 crore equity shares via OFS. Additionally, public shareholder Ram Ratna Wires will divest its entire 13.64 lakh shareholding in the IPO.
Notably, the company has set aside Rs 10.8 crore worth of shares for its employees, who will receive them at a discounted price of Rs 98 per share compared to the final offer price.
The IPO subscription period is scheduled to commence on September 13, with the closing date being September 15. Before this, the anchor book will be open for a single day on September 12.
Investors interested in participating in the IPO can bid for a minimum of 14 equity shares and in multiples of 14 shares thereafter. Retail investors have a minimum investment requirement of Rs 14,490 for 14 shares, with a maximum investment cap of Rs 1,88,370 for 182 shares.
Meanwhile, high net-worth individuals with investment limits ranging from Rs 2 lakh to 10 lakh can make a minimum investment of Rs 2,02,860 for 196 shares, and their maximum investment ceiling is Rs 9,99,810 for 966 shares.
Proceeds from the fresh issue will primarily be utilized to repay debt amounting to Rs 136 crore, with the remaining funds allocated for general corporate purposes. As of August 28, the company had outstanding borrowings totaling Rs 777.3 crore.
RR Kabel operates in two main segments: wires & cables, which accounted for 71 percent of its revenue in the quarter ending June FY24, and FMEG (fast-moving electrical goods), including fans, lights, switches, and appliances.
The IPO is being facilitated by merchant bankers Axis Capital, HSBC Securities and Capital Markets (India), Citigroup Global Markets India, and JM Financial.
