- By Vaamanaa Sethi
- Wed, 13 Sep 2023 02:50 PM (IST)
- Source:JND
RR Kabel IPO, which opened for subscription today, September 15, has been subscribed over 0.15 times. The public issue subscribed 0.24 times in the retail category.
The retail part of the issue was subscribed 0.24 times, as of 2:30 pm IST, while non-institutional investors were subscribed over 0.12 times, as per data available. On Tuesday, September 12, RR Kabel had raised ₹585 crore from anchor investors.
RR Kabel IPO will close for subscription on Friday, September 15. The company had fixed a price band of Rs 983 to Rs 1,035 per equity share of face value of Rs 5 each.
The company has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
The part reserved for employees was 0.41 times subscribed on the first day of issue. The company had set aside over Rs 10.8 crore worth shares for its employees, at a discount of ₹98 per share to the final offer price.
As per the RHP the listed industry peers of the company are Havells India Ltd, Polycab India Ltd, KEI Industries Ltd, Finolex Cables Ltd, V-Guard Industries Ltd, Crompton Greaves Consumer Electricals Ltd, Bajaj Electricals Ltd.
"We are the fastest growing consumer electrical company among our peers in India, growing at a compound annual growth rate (CAGR) of 43.4% between Fiscal 2021 and Fiscal 2023," said the company in its RHP.
Analyst Take on RR Kabel IPO
“In wires and cables, the company witnessed revenue growth of 63% in FY2022 with a volume growth of 23% and a growth of 21% with a volume growth of 20% in FY2023. However, the margin got impacted due to commodity prices. Based on the EPS of FY2023, the company seems fairly priced, we recommend subscribing for the long term," said Brokerage firm, Canara Bank Securities Ltd.
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Whereas, Reliance Securities Ltd in its report also gave ‘subscribe’ tag to the issue. “We believe the premiumisation path could potentially result in structural margin expansion and B2C sales are likely to remain strong in coming years, the recent correction in input prices and the strong surge in multiple demand drivers augurs well for the company, we recommend a 'Subscribe' to the issue,” it said.
