Global private equity firm TPG-backed RR Kabel's initial public offering has seen a good response from investors on the final day of bidding on September 15. The subscription rate stood at 18.69 times, with participants purchasing 24.89 crore equity shares against an IPO size of 1.33 crore shares.
Qualified institutional buyers (QIB) and high networth individuals, who have 50 percent and 15 percent reservation in the offer size, bid for shares 52.26 times and 13.23 times the said allotted quota, respectively.
Retail investors have bought 2.13 times the portion set aside for them, which is 35 percent of the issue size, and employees 2.69 times the reserved portion.
The consumer electrical products maker has reserved Rs 10.8 crore worth of shares for its employees who will receive those shares at a discount of Rs 98 per share to the final issue price.
The Gujarat-based company aims to raise Rs 180 crore via its fresh issue component and Rs 1,784.01 crore via offer-for-sale (OFS) portion, at the upper price band.
Click Here To Read Moneycontrol's Exclusive Note on Yatra Online IPO
This implies that most of the funds are flowing to the selling shareholders, leaving the company with just around 9 percent of the total offer. This could be one of the factors contributing to the lower subscription, especially on the final day, along with the financial performance's volatility, as noted by experts.
The price band for the offer, which was opened on September 13 and subscribed 1.4 times till September 14, has been fixed at Rs 983-1,035 per share.
Promoter Mahendrakumar Rameshwarlal Kabra and promoter group along with public shareholders Ram Ratna Wires, and TPG Asia VII SF Pte Ltd will be selling shares in the OFS.
Also read: Yatra Online raises Rs 348 crore from anchor investors ahead of IPO
The wires & cables and FMEG products manufacturer will be utilising the net fresh issue proceeds for the debt reduction worth Rs 136 crore, and general corporate purposes.
Promoters hold 66.42 percent shareholding in the company and the remaining 33.58 percent is held by public shareholders. Amongst them, TPG is the largest shareholder in the company with a 16.67 percent stake.
As per the IPO schedule, RR Kabel in consultation with merchant bankers will finalise the basis of allotment of IPO shares by September 21 and will credit the equity shares to the demat accounts of eligible investors by September 25. The refunds will be credited to bank accounts of unsuccessful investors by September 22.
Also read: Entero Healthcare Solutions files for IPO, fresh issue component at Rs 1,000 crore
The much-awaited listing of its equity shares on the BSE and NSE will commence with effect from September 26.
Its IPO shares were available at a premium of around 10-12 percent over the upper price band, in the grey market, analysts said on anonymity. The grey market is an unofficial platform for trading in IPO shares till the listing.
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