R R Kabel IPO will open for subscription from 13 September 2023. The company aims for an issue size of ₹1,964.01 Cr through this IPO.
Company Overview
| Full name | R R Kabel Limited |
| Sector | Electricals |
| Industry | Cable |
| Company Website | https://www.rrkabel.com/ |
About Company
The company is one of the leading players in the Indian consumer electrical industry with an operating history of over 20 years. It sells products across two broad segments – (i) wires and cables including house wires, industrial wires, power cables, and special cables; and (ii) FMEG including fans, lighting, switches, and appliances.
RR Kabel undertakes the manufacturing, marketing, and sale of (i) its wires and cable products under our ‘RR Kabel’ brand, and (ii) a variety of consumer electrical products, including fans and lights under the ‘RR’ brand, which is licensed by it. The company also manufactures, markets, and sells fans and lights under the ‘Luminous Fans and Lights’ brand. The ‘RR Kabel brand has over 20 years of operating history, while the ‘RR’ and ‘Luminous Fans and Lights brands, which are licensed by it, have over 7 years and over 10 years of operating history, respectively.
The wires and cables segment has been in operation since the Fiscal 1999 and includes a wide range of products such as house wires, industrial wires, power cables, and special cables. The company has actively diversified and expanded its product portfolio in adjacent areas such as FMEG, both organically and inorganically. In Fiscal 2020, it amalgamated the business from one of its group companies, Ram Ratna Electricals Limited (RREL). In Fiscal 2020, it also acquired the light emitting diode (LED) lights and related hardware business (LED Lights Business) of Arraystorm Lighting Private Limited. In May 2022, RR Kabel acquired the corresponding home electrical business of Luminous Power Technologies Private Limited.
The Objective of the Issue
- Repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions.
- General corporate purposes.
IPO Timetable
| IPO Opening date | 13 September 2023 |
| IPO Closing | 15 September 2023 |
| Basis of Allotment | 21 September 2023 |
| Initiation Refund | 22 September 2023 |
| Credit to Demat Account | 25 September 2023 |
| Listing Date | 26 September 2023 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹1,964.01 Cr – 18,975,938 shares |
| Fresh Issue | ₹180 Cr – 1,739,130 shares |
| Offer for sale | ₹1,784.01 Cr – 17,236,808 shares |
| Face value | ₹05 per share |
| Price Band | ₹983 to ₹1035 per share |
| Lot size | 14 Shares |
| Employee Discount | ₹98 per share |
| Shareholding pre issue | 95,696,296 |
| Shareholding post issue | 97,435,426 |
| Listing Exchange | BSE & NSE |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 14 | ₹14,490 |
| Retail (Max) | 13 | 182 | ₹188,370 |
| S-HNI (Min) | 14 | 196 | ₹202,860 |
| S-HNI (Max) | 69 | 966 | ₹999,810 |
| B-HNI (Min) | 70 | 980 | ₹1,014,300 |
Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Financial Performance
| FY 2021 | FY 2022 | FY 2023 | Q1 FY 2024 | |
| Revenue | 2,723.9 | 4,385.9 | 5,599.20 | 1,597.31 |
| Expenses | 2,565.6 | 4,152.1 | 5,378.59 | 1,514.88 |
| Net income | 142.6 | 230.7 | 202.2 | 103.9 |
| Margin (%) | 5.24 | 5.26 | 3.61 | 6.50 |
Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 12.18 | 19.22 | 17.07 |
| PE ratio | – | – | 57.59 – 60.63 |
| RONW (%) | 13.10 | 17.29 | 13.66 |
| NAV | – | 111.38 | 125.19 |
| ROCE (%) | 13.59 | 17.41 | 15.57 |
| EBITDA (%) | 9.22 | 7.98 | 6.35 |
| Debt/Equity | 0.48 | 0.42 | 0.36 |
Company Promoters
- Tribhuvanprasad Rameshwarlal Kabra
- Shreegopal Rameshwarlal Kabra
- Mahendra Kumar Rameshwarlal Kabra
- Kirtidevi Shreegopal Kabra
- Tribhuvanprasad Kabra HUF
- Kabra Shreegopal Rameshwarlal HUF
- Mahendra Kumar Kabra HUF
Promoter Holding
| Pre Issue Share Holding | 66.42% |
| Post Issue Share Holding | 62.77% |
Lead Manager(s)
- Axis Capital Limited
- Citigroup Global Markets India Private Limited
- HSBC Securities & Capital Markets Pvt Ltd
- Jm Financial Limited
IPO Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 247 Park, 1st Floor, L.B.S. Marg,
Vikhroli West, Mumbai, 400 083, Maharashtra
Phone: +91 22 4918 6200
Email: rkabel.ipo@linkintime.co.in
Website: www.linkintime.com
Contact Details
RR KABEL LIMITED
Alembic Business Park (West), Ground Floor,
Bhailal Amin Marg, Gorwa, Vadodara 390 003,
Gujarat, India
Phone: +91 22 24949009
Email: investorrelations.rrkl@rrglobal.com
Website: www.rrkabel.com
Allotment Status
RR Kabel IPO allotment will be available on Link Intime’s website. Click on this link to get allotment status.
Final thoughts
R R Kabel IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
