• By Vaamanaa Sethi
  • Tue, 19 Sep 2023 12:02 PM (IST)
  • Source:JND

After getting a strong response from investors, RR Kabel will complete its listing of its equity shares on Indian bourses on September 20, making it the first IPO firm to complete its listing under T+2 timeline.

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As per rules and regulations by the market regulator, an IPO company needs to complete its listing process within three working days from the closure of the IPO. The issue price for the current public issue was fixed at Rs 1,035 per share, with Rs 5 as face value and premium of Rs 1,030.

“Trading Members of the Exchange are hereby informed that effective from Wednesday, September 20, 2023, the equity shares of R R KABEL LIMITED shall be listed and admitted to dealings on the Exchange in the list of 'B ' Group of Securities," BSE notice stated.

The company's decision was made on a voluntary basis, and SEBI has not enforced the November 30 deadline as a mandatory requirement for IPO firms. Presently, companies adhere to a T+6 timeline for IPO listing. Nevertheless, there has been a push from banks to shorten the timeline from T+6 to T+3.

As per a notice by Securities and Exchange Board of India (SEBI) released in August, IPO firms have to complete their listing as per the T+3 timeline. Currently, the IPO market functions on a T+6 system. Under this system, IPO stock needs to be listed on the stock exchanges within six working days from the closure of the IPO.

With the updated timeline, the duration is shortened from six days to just three days. Following its implementation, IPOs will be required to finalize their stock listing process within three business days after the IPO's conclusion.

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The timeline will roll out in two phases. The initial phase, effective for public issues from September 1, 2023, to November 30, 2023, grants firms the flexibility to opt for either the new or the old deadline. However, starting from December 1, 2023, the new deadline becomes compulsory for all firms.