- By Vaamanaa Sethi
- Wed, 20 Sep 2023 10:45 AM (IST)
- Source:JND
The shares of RR Kabel made a stellar debut at Indian bourses in Wednesday’s trading session at Rs 1,180 per share, a 14% premium over the IPO share price of Rs 1,035 per piece on NSE.
Meanwhile, RR Kabel shares listed at Rs 1,179 per share on BSE, at 13.9% premium over IPO price. RR Kabel shares listed on both the stock exchanges within two days of its IPO, making it the fastest company to make its debut on D-Street.
Also read: Torrent Pharma In Talks With Apollo To Borrow $1 Billion For Cipla Bid: Report
The market regulator has recently introduced alterations to IPO listing regulations, shortening the timeline from T+6 days to T+3 days, where 'T' signifies the IPO closing date. It's important to note that for IPOs that were issued after September 1, these new listing rules are implemented on an optional basis.
RR Kabel price band was fixed at Rs 983 to Rs 1,035 per Share. The company aimed to raise up to Rs 1,964 crore from the IPO.
The issue garnered a favorable response from investors, with an overall subscription rate of 18.69 times. All categories, particularly institutional investors with a subscription rate of 52.26 times, were fully subscribed. In contrast, the retail segment had the lowest subscription rate at 2.13 times.
The company proposes to utilise the net proceeds towards the funding of repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions estimated to be Rs 170 crore.
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 comprised 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.
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.