RR Kabel Becomes First To Cut Listing Time By 4 Days After IPO, To Now Debut On September 20; What GMP Hints?

One of the leading companies in the Indian consumer electrical industry, RR Kabel is set to make history after its success in Rs 1,964 crore worth of initial public offering (IPO). RR Kabel not only becomes the first company to cut the listing time by 4 days, but will also be the first to debut in 'T+2' timeline.

On September 18, BSE notified that "Trading Members of the Exchange are hereby informed that effective from Wednesday, September 20, 2023, the equity shares of R R KABEL LIMITED shall be listed and admitted to dealings on the Exchange in the list of 'B ' Group of Securities."

During the listing, the number of equity shares of RR Kabel will be to tune of 112,818,761 equity shares having a face value of Rs 5 each. The issue price for the IPO is set at RS 1,035 per share.

The company's allotment of equity shares of the IPO was scheduled on September 18.

BSE's notification stated that RR Kabel scrip will be a part of Special Pre-open Session (SPOS) on Wednesday, September 20, 2023. Also, RR Kabel has informed the exchanges in respect of shares in demat form, that necessary corporate action has been executed to have the lock-in period marked in the depositories records.

The company will become the first to list in T+2 timeline. That means that RR Kabel's listing is taking place on the second working day after the closing of the IPO.

RR Kabel launched its IPO on September 13th and subscription window for the issue closed on September 15. On the last day, the IPO received oversubscription of 18.69 times.

The Qualified Institutional Buyers (QIBs) portion showed robust demand with oversubscription of 52.26 times, while the Non Institutional Investors (NIIs) portion subscribed by 13.23 times. Further, the Retail Individual Investors (RIIs) portion subscribed by 2.13 times, and the reserved shares for employees subscribed by 2.69 times on Day 3.

On September 19, the grey market premium (GMP) for the IPO was Rs 96 per share. As per the TopShareBrokers, with the price band of 1035.00, R R Kabel IPO's estimated listing price is ₹1131 (cap price + today's GMP).The expected percentage gain/loss per share is 9.28%.

The IPO includes a fresh issue worth Rs 180 crore and an offer for sale (OFS) of up to 1,72,36,808 shares. The company planned to raise Rs 1,964 crore from the IPO. Further, the price band for the IPO was fixed at Rs 983 to Rs 1,035 per equity share. Under the employees' reservation portion, RR Kabel offered a discount of Rs 98 per equity share to its eligible employees who will be bidding in the IPO.

RR Kabel plans to use the proceeds from fresh issues for repayment of borrowings availed from banks and financial institutions. Also, a part of the proceeds will be used for general corporate purposes.

Moreover, book-running lead managers for the IPO are Axis Capital, HSBC Securities Markets (India), Citigroup Global Markets, and JM Financial. Further, Link Intime India is the registrar of the issue.

RR Kabel is one of the leading companies in the Indian consumer electrical industry (comprising wires and cables and fast-moving electrical goods ("FMEG")), with an operating history of over 20 years in India. The company is the fastest-growing consumer electrical company among our peers in India, growing at a CAGR of 33.0% between Fiscal 2020 and Fiscal 2022.