RR Kabel Limited, a prominent name in the wires and cables industry, announced on June 17, 2025, that its Finance and Allotment Committee has approved the allotment of 13,332 equity shares. This allotment, each share having a face value of ₹5, was made to an eligible employee who exercised vested options under the company's RR Kabel Employee Stock Option Plan 2020 (RRKL ESOP 2020). This corporate action has led to an increase in the company's paid-up equity share capital.
| Particulars | Details |
|---|---|
| Company Name | R R Kabel Limited |
| Scheme Name | RR Kabel Employee Stock Option Plan 2020 (RRKL ESOP 2020) |
| Date of Allotment | June 17, 2025 |
| Number of Equity Shares Allotted | 13,332 |
| Face Value per Share | ₹5 |
| Exercise Price per Share | ₹270.10 |
| Premium per Share | ₹265.10 |
| Previous Paid-up Equity Share Capital | ₹56,53,64,505 (Consisting of 11,30,72,901 equity shares of ₹5 each) |
| New Paid-up Equity Share Capital (Post-Allotment) | ₹56,54,31,165 (Consisting of 11,30,86,233 equity shares of ₹5 each) |
| Total Issued Shares After This Issue | 11,30,86,233 |
| ISIN Number of the Shares | INE777K01022 |
| Stock Exchanges Listed On | BSE Limited (BSE), National Stock Exchange of India Limited (NSE) |
| BSE Script Code | 543981 |
| NSE Symbol | RRKABEL |
| Lock-in Details | Not applicable |
| Ranking of New Shares | Pari-passu with existing equity shares |
Detailed Analysis of the Allotment
The allotment of equity shares under an Employee Stock Option Plan (ESOP) is a common corporate practice aimed at rewarding and retaining employees, allowing them to participate in the company's growth. RR Kabel's recent allotment under its RRKL ESOP 2020 reflects its ongoing commitment to this strategy.
Breakdown of the Share Allotment
On June 17, 2025, the Finance and Allotment Committee of RR Kabel Limited greenlit the issuance of 13,332 equity shares. These shares, each with a nominal face value of ₹5, were allocated to an eligible employee who chose to exercise their vested options. The exercise price for these shares was set at ₹270.10 per share. This implies a premium of ₹265.10 per share over the face value, contributing to the company's securities premium account.
The shares were issued under the "RR Kabel Employee Stock Option Plan 2020 (RRKL ESOP 2020)," indicating a structured program for employee stock ownership. The specific shares allotted carry distinctive numbers ranging from 113072902 to 11,30,86,233.
Changes in Share Capital Structure
Consequent to this allotment, RR Kabel's paid-up equity share capital has seen an increase. Prior to this event, the company's paid-up capital stood at ₹56,53,64,505, which was composed of 11,30,72,901 equity shares, each with a face value of ₹5.
Following the allotment of 13,332 new shares, the paid-up equity share capital has risen to ₹56,54,31,165. This new capital figure corresponds to a total of 11,30,86,233 equity shares of ₹5 each. The net increase in the paid-up capital amounts to ₹66,660 (13,332 shares * ₹5 face value per share).
Features of the Newly Allotted Shares
The company has confirmed that the 13,332 equity shares allotted under the ESOP scheme will rank pari-passu with the existing equity shares of RR Kabel Limited in all respects. This means that the new shares will have the same rights and be subject to the same liabilities as the currently outstanding shares, including rights to dividends and voting. The ISIN (International Securities Identification Number) for these equity shares, if issued in Demat form, is INE777K01022. Importantly, the company has stated that there are no lock-in restrictions applicable to these newly issued shares, and therefore, the date of expiry of lock-in is not applicable.
Regulatory Framework and Disclosures
This corporate action has been undertaken in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The company has provided the necessary details as required under Regulation 10(c) of these regulations, which are enclosed as Annexure - I to their official communication.
RR Kabel had previously filed the statement referred to in Regulation 10(b) of the SEBI SBEB Regulations with the stock exchanges on April 24, 2024. The filing numbers for this statement were BSE: 200498 and NSE: 41346. The company also stated that this intimation regarding the allotment will be made available on its official website, ensuring transparency for its stakeholders.
Understanding the RR Kabel ESOP 2020
Employee Stock Option Plans like the RRKL ESOP 2020 are designed to incentivize employees by offering them ownership stakes in the company. These plans typically involve granting options that employees can exercise to purchase company shares at a predetermined price (the exercise price) after a vesting period. ESOPs are widely regarded as a tool to align employee interests with those of shareholders, foster a sense of ownership, and aid in talent retention and motivation. The current allotment is a manifestation of this ongoing plan within RR Kabel.
The details regarding listing fees, if payable for these new shares, were not specified in the announcement, indicated by a "-" in the disclosure.
Company Profile
RR Kabel Limited is a part of the RR Global conglomerate and is a significant player in the Indian wires and cables market. The company's registered office is located at Ram Ratna House, Utopia City, P. B. Marg, Worli, Mumbai - 400 013, India. Its corporate office is situated at Alembic Business Park (W), Ground Floor, Bhailal Amin Marg, Gorwa, Vadodara - 390 003, India. RR Kabel's shares are publicly traded on the BSE Limited (Script Code: 543981) and the National Stock Exchange of India Limited (Symbol: RRKABEL). The company's CIN is L28997MH1995PLC085294.
Market Considerations
The allotment of shares under an ESOP typically results in a minor dilution of existing shareholding. However, such allotments are generally viewed by the market in the context of their long-term benefits, such as improved employee performance and retention. The impact on RR Kabel's stock price will depend on various factors, including overall market sentiment, the company's performance, and investor perception of the ESOP's contribution to long-term value creation. As the newly allotted shares rank pari-passu with existing shares, they will be integrated into the existing trading float.
