The initial public offering of RR Kabel, the wire and cable manufacturer, has received bids for 32.87 lakh equity shares against an IPO size of 1.33 crore shares, resulting in a 25 percent subscription so far, on September 13, the first day of bidding.
Retail investors have bought 36 percent shares of the portion set aside for them, which is 35 percent of the total issue size, while the reserved portion of employees, which is Rs 10.8 crore worth shares, was subscribed 58 percent.
Eligible employees will get shares at a discount of Rs 98 per share to the final issue price. The price band for the offer, which closes on September 15, is Rs 983-1,035 per share.
High networth individuals and qualified institutional buyers (QIB) have also started putting in bids for the offer, subscribing 29 percent and 0.2 percent shares of their portion which were 50 percent and 15 percent of the IPO size, respectively.
The global private equity giant TPG-backed company intends to raise Rs 1,964.01 crore via a maiden public issue at the upper price band. The offer comprises a fresh issuance of shares worth Rs 180 crore and an offer-for-sale of 1.72 crore shares worth Rs 1,784.01 crore by six selling shareholders including promoter Mahendrakumar Rameshwarlal Kabra, and investor TPG Asia VII SF Pte Ltd which holds 16.67 percent stake in the company.
Also read: TPG to cut stake at RR Kabel via IPO, poised for 4x return on investment
Promoters hold 66.42 percent shares in RR Kabel and the remainder stake is held by public shareholders including TPG, the largest public shareholder in the company.
The Gujarat-based consumer electrical product maker will spend the fresh issue proceeds mainly for repaying debt amounting to Rs 136 crore, and the remainder on general corporate purposes. The outstanding debt on its books as of August 28 was Rs 777.3 crore.
RR Kabel has already mobilised Rs 585.62 crore of the total IPO fund raising, via its anchor book, a part of QIB, on September 12, a day before the issue opening.
Marquee investors who participated in the anchor book included Carmignac Portfolio, HSBC Global, Abu Dhabi Investment Authority, Ashoka Whiteoak ICAV, Government Pension Fund Global, TIMF Holdings, Elara India Opportunities Fund, Morgan Stanley Asia (Singapore), ICICI Prudential, Axis Mutual Fund, HDFC Mutual Fund, Aditya Birla Sun Life Trustee, Kotak Mutual Fund, and Franklin Mutual Fund.
Also read: Signature Global to float its IPO on Sept 20 to mop up Rs 730 crore
It is the fastest-growing consumer electrical company among its peers in India, growing at a CAGR of 43.4 percent during FY21-FY23.
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