RR Kabel IPO: Here’s All You Need To Know About Issue Date, Price Band, GMP Today And Other Details

The initial public offering (IPO) of RR Kabel is all set to open on Wednesday, September 13 and will close on Friday, September 15. Meanwhile, its anchor investor bidding will take place on Tuesday, September 12.

Also read: OpenAI’s ChatGPT Witnesses Decline In Users For Third Consecutive Month: Report

RR Kabel price band has been fixed at Rs 983 to Rs 1,035 per share. Bids can be made for a minimum of 14 equity shares and in multiples of 14 equity shares thereafter. The company aims to raise up to Rs 1,964 crore from the IPO.

RR Kabel provides consumer electrical products used for residential, commercial, industrial, and infrastructure purposes and operates in two broad segments - wires & cables and FMEG (fast moving electrical goods), including fans, lights, switches and appliances.

The initial public offering comprises a fresh issue of equity shares aggregating up to Rs 1,800 million and an offer for sale up to 17,236,808 equity shares by selling shareholders and together with the fresh issue.

The offer also includes a reservation of equity shares aggregating up to ₹108 million that will be available for allocation on a proportionate basis to certain eligible employees of the company in the manner described in the red herring prospectus dated September 6, 2023 filed with the Registrar of Companies, Maharashtra at Mumbai. 

The company is expected to fix the basis of allotment of IPO shares on September 21 and initiate refunds on September 22, while crediting the shares in the demat accounts of eligible allottees on September 25.

The company proposes to utilize the proceeds raised through the fresh issue towards repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions estimated to be Rs1,360 million; and balance amount towards general corporate purposes. 

The offer for sale comprises of up to 754,417 equity shares by Mahendrakumar Rameshwarlal Kabra; up to 754,417 equity shares by Hemant Mahendrakumar Kabra; 754,417 equity shares by Sumeet Mahendrakumar Kabra; up to 707, 200 equity shares by Kabel Buildcon Solutions Private Limited, up to 1,364,480 equity shares by Ram Ratna Wires Limited, and up to 12,901,877 equity shares by TPG Asia VII SF Pte.Ltd.

Axis Capital Ltd, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited and JM Financial Limited are the book running lead managers to the Offer.

RR Kabel IPO GMP Today

RR Kabel IPO grey market premium (GMP) today is Rs 40 per share, as per market observers, which means that the share is trading at a premium of Rs 40 per piece above the IPO price band in the unlisted market. This also indicates a premium of 3.86% to the issue price of Rs 1,035 per share.

Also read: Goldman Sachs To Lay Off Employees In Fresh Round Of Job Cuts: Report

Considering the GMP today and the issue price, the estimated listing price of RR Kabel shares is Rs 1,075 per piece.