of RR Kabel, a leading manufacturer of cables and wires in India, is opening for public
on September 13.
Here is all you need to know:
What is the RR Kabel?
The RR Kabel IPO is one of the leading wires, cables and fast-moving electrical goods (FMEG) manufacturing companies in India. The company is backed by TPG Capital, a global private equity firm.
When is the RR Kabel IPO opening and closing?
The RR Kabel IPO will open for subscription on September 13, 2023, and close on September 15, 2023. The allotment of shares will be done on September 20, 2023, and the listing of shares will be done on September 23, 2023.
What is the price band and lot size of the RR Kabel IPO?
The price band at Rs 983-1,035 for its Rs 1,964-crore initial public offering.
What is the size of the RR Kabel IPO?
The initial public offering (IPO) comprises two components: A fresh issue of shares valued at up to Rs 180 crore and an offer for sale (OFS) of more than 1.72 crore shares by various stakeholders, primarily led by TPG, which plans to reduce its ownership to approximately 5% through this share sale.
At the higher end of the price range, the IPO is expected to generate proceeds of up to Rs 1,964 crore, as stated by Rajesh Babu Jain, the Chief Financial Officer of the Gujarat-based company.
During the OFS, the promoters and promoter entities will divest 3-4% of their current holdings, while still retaining a 64% stake in the company. Interestingly, in the pre-IPO phase two weeks ago, TPG had already sold 5% of its initial 21% stake, which it had acquired in September 2018 foRRs 3,000 crore.
How to apply for the RR Kabel IPO?
You can apply for the RR Kabel IPO online through your bank account or through a broker. You need to have a demat account and a PAN card to apply. You can use the UPI mode or the ASBA mode to make the payment. You can check the status of your application on the website of the registrar, Link Intime India Private Limited.
What are the risks and opportunities of investing in the RR Kabel IPO?
A: Investing in any IPO involves risks and opportunities. Some of the risks of investing in the RR Kabel IPO are:
– The company operates in a highly competitive and regulated industry, which may affect its profitability and growth prospects.
– The company depends on a few key customers and suppliers, which may expose it to concentration risk and supply chain disruptions.
– The company may face legal disputes, regulatory actions, environmental issues or product liability claims, which may adversely affect its reputation and financial condition.
– The company may not be able to successfully implement its expansion plans or manage its debt obligations, which may hamper its future performance.
What are brokerage recommendations for RR Kabel IPO?
However, it is important to do your own research before making an investment decision.
(With inputs from agencies)