RR Kabel first co to cut listing time by 4 days after IPO, shares to debut on Sept 20

RR Kabel shares to debut on September 20

Gujarat-based consumer electrical products company RR Kabel has preponed its listing date by four days and decided to list shares on the bourses on September 20, immediately after two days following the issue close.

Earlier, the global private equity firm TPG-backed company was proposed to list on September 26, i.e. six days after the issue closing, as per the normal IPO schedule.

"....effective from Wednesday, September 20, 2023, the equity shares of RR Kabel shall be listed and admitted to dealings on the exchange in the list of 'B ' Group of securities," the BSE in its notice said.

The final issue price has been set at Rs 1,035 per share.

This means, the timeline for listing of its shares set by the company is T+2, which is less than the timeline finalised by the market regulator Sebi in the recent past.

The Securities and Exchange Board of India (Sebi), on June 28 this year, has decided to reduce the listing timeline after an initial public offering (IPO) to three days after the closure of the issue from the present T+6 at present. 'T' is the day the issue closes for the subscription of IPO.

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The regulator had said the revised timeline of T+3 days would be made applicable in two phases i.e. voluntary for all public issues opening on or after September 1, 2023, and mandatory on or after December 1, 2023.

Hence, RR Kabel is going to be the first company to use the T+2 deadline instead of the T+3 set by the regulator.

The wires and cables manufacturer has finalised the allotment date as September 18. This means, the entire process between the issue closing date and the listing date, has been settled in one single day.

Earlier, after the issue closure, the company finalised the basis of allotment of IPO shares by the third day (post-issue closing), refunded money to unsuccessful investors by the fourth day and credited shares to demat accounts of successful investors by the fifth day, followed by listing on the sixth day.

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The public issue of RR Kabel closed on September 15, with 18.69 times subscription. Qualified institutional buyers provided major support to the issue, buying 52.26 times their allotted quota, while the high networth individuals and retail investors bid 13.23 times and 2.13 times the portion set aside for them, respectively.

The fans and lights maker has raised Rs 1,964.01 crore via the IPO, which comprised a fresh issue component of Rs 180 crore worth of shares and an offer for sale (OFS) of Rs 1,784.01 crore worth of shares by six shareholders, including promoter Mahendrakumar Rameshwarlal Kabra and investor TPG Asia VII SF Pte Ltd.

The price band for the offer was Rs 983-1,035 per share.

Axis Capital, Citigroup Global Markets India, HSBC Securities & Capital Markets, and JM Financial are the merchant bankers to the issue, while Link Intime India is the registrar to the offer.