RR Kabel sets IPO price band at Rs 983-1,035 per share

RR Kabel sets IPO price band at Rs 983-1,035 per share

Global private equity firm TPG-backed RR Kabel has set the price band at Rs 983-1,035 per share for its maiden public issue, as per the advertisement published by the company in newspapers. The fund raising via IPO would be Rs 1,964 crore at the upper price band.

The IPO comprises fresh issue of equity shares worth Rs 180 crore and an offer for sale (OFS) of 1,72,36,808 equity shares worth Rs 1,784 crore, at the upper price band, by the promoters and investors.

TPG Asia VII SF Pte Ltd will be the largest seller among selling shareholders, offloading 1.29 crore equity shares via OFS, while public shareholder Ram Ratna Wires will be selling its entire shareholding of 13.64 lakh shares in the IPO.

Promoters Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, and Sumeet Mahendrakumar Kabra, as well as Kabel Buildcon Solutions, a part of the promoter group, will be other selling shareholders in the OFS.

The company has reserved Rs 10.8 crore worth shares for its employees, who will receive shares at a discount of Rs 98 per share to the final offer price.

The initial public offering will open for subscription on September 13 and the closing date will be September 15, while the anchor book will be opened for a day on September 12.

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Investors can bid for a minimum of 14 equity shares and in multiples of 14 shares thereafter. Retail investors can invest a minimum of Rs 14,490 for 14 shares and their maximum investment would be Rs 1,88,370 for 182 shares, while high networth individuals with investment limit of Rs 2 lakh to 10 lakh can make a minimum investment of Rs 2,02,860 for 196 shares and the maximum investment would be Rs 9,99,810 for 966 shares.

The consumer electrical product maker will make use of fresh issue proceeds mainly for repaying debt amounting to Rs 136 crore, and the remainder on general corporate purposes. It had an outstanding borrowings of Rs 777.3 crore as of August 28.

RR Kabel operates in two broad segments. One is wires & cables, which contributed 71 percent to its topline in the quarter ended June FY24, and the other is FMEG (fast moving electrical goods), including fans, lights, switches and appliances.

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Axis Capital, HSBC Securities and Capital Markets (India), Citigroup Global Markets India, and JM Financial are the merchant bankers to the issue.