R R Kabel IPO GMP, Price, Dates & Allotment Details 2023
Introduction
The R R Kabel IPO will open on September 13 and close on September 15, 2023. As per the DRHP filed with SEBI, the company intends to raise approximately ₹ 1,964.01 crore through this public offering, consisting of 18,975,938 shares with a face value of ₹ 5 each, which will be issued at a price of ₹ 983 to ₹ 1035 per share.
R R Kabel Limited (“the Company”)
R. R. Kabel Ltd. was incorporated in 1995. It 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 also manufactures, markets, and sells fans and lights under the ‘Luminous Fans and Lights’ brand, which is licensed by the company.
The company sells products across two broad segments:
- wires and cables, including house wires, industrial wires, power cables, and special cables; and
- FMEG includes fans, lighting, switches, and appliances. In the nine months ended December 31, 2022,
- 73% of its revenue from operations comes from its wires and cables segment (of which all of our revenue from operations comes from its house wire products); and
- 95% of its revenue from operations in its FMEG segment is from the B2C channel. Its product’s end use determines whether the sale is through a business-to-business (“B2B”) or B2C channel. According to Technopak, B2C sales provide higher gross margins as compared to B2B sales.
R R Kabel Limited owns and operates two integrated manufacturing facilities, which are located at Waghodia, Gujarat, being the Waghodia Facility, and Silvassa, Dadra and Nagar Haveli, and Daman and Diu (“Silvassa Facility”) in India. Additionally, this company owns and operates three integrated manufacturing facilities that are located in Roorkee, Uttarakhand (“Roorkee Facility”), Bengaluru, Karnataka (“Bengaluru Facility), and Gagret, Himachal Pradesh (“Gagret Facility”) in India.
Noteworthy Highlight
This is one of the leading companies in the Indian consumer electrical industry on account of the following:
- It is the fastest-growing consumer electrical company among its peers in India, growing at a CAGR of 33.0% between fiscal 2020 and fiscal 2022;
- It is the fifth-largest player in the wires and cables market in India, representing approximately 5% market share by value as of March 31, 2022.
- It is the fifth largest player in the branded wires and cables market in India, representing approximately 8% market share by value as of March 31, 2022, as compared to approximately 5% market share by value as of March 31, 2015;
- It has the highest revenue contribution from the business-to-consumer (“B2C”) sales channel in wires and cables, with approximately 75% of revenue coming from the B2C sales channel as of March 31, 2022;
- In the calendar year 2021, they were the largest exporter of wires and cables from India in terms of value, representing approximately 11% of the export market from India;
- This has one of the largest networks of electricians, covering 147,810 electricians across India as of March 31, 2022;
- The revenue contribution from the FMEG segment, which is approximately 10.92% for the nine months ended December 31, 2022, as opposed to approximately 6.26% in Fiscal 2022, is the highest among its peers.
- It has one of the highest numbers of distributors servicing the extensive retail footprint in the consumer electrical industry as of March 31, 2022, and has increased its retailer outlets by 2.4 times, from 24,347 in fiscal 2020 to 58,872 in fiscal 2022, pursuant to undertaking several initiatives.
- Its products have 35 international product certifications, which is one of the highest among its peers in the Indian consumer electrical industry as of March 31, 2022.
Company Key Metrics
| Earning Per Share (EPS) | ₹ 17.09 per Equity Share |
| Debt to Equity Ratio | 0.36 |
| ROE | 14.22% |
| ROCE | 15.57% |
| Return on Net Worth (RoNW) | 13.66% |
Objects of the Issue,
The company proposes utilising the Fresh Issue’s net proceeds towards funding the following objects:
- Repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions.
- General corporate purposes.
Financial Highlights (Restated)
| Particulars | FY 2022-23 | FY 2021-22 | FY 2020-21 | FY 2019-20 |
|---|---|---|---|---|
| Net Worth | 1,390.47 | 1,237.05 | 1,033.38 | 875.07 |
| Total Assets | 2,633.62 | 2,050.64 | 1,715.11 | 1,545.36 |
| Reserve & Surplus | 914.15 | 781.31 | 594.93 | 459.23 |
| Total Borrowings | 515.84 | 521.11 | 498.71 | 395.29 |
| Total Revenue | 5,633.64 | 4,432.22 | 2,745.94 | 2,505.54 |
| Profit After Tax | 189.87 | 213.94 | 135.40 | 122.40 |
IPO details
| Issue Type | Book Built Issue IPO |
| IPO Price | ₹ 983 to ₹ 1035 per share |
| Face Value | ₹ 5 per share |
| Market Lot | 14 shares |
| Issue Size | 18,975,938 shares (aggregating up to ₹ 1964.01 crores) |
| Fresh Issue | 1,739,130 shares (aggregating up to ₹ 180 crores) |
| Offer for Sale | 17,236,808 shares (aggregating up to ₹ 1784.01 crores) |
| Listing At | NSE and BSE |
IPO Reservation
| Categories | No. of shares offered |
|---|---|
| QIB shares offered | Not more than 50% of the net offer |
| NII (HNI) shares offered | Not less than 15% of the offer |
| Retail shares offered | Not less than 35% of the offer |
GMP: R R Kabel IPO
GMP, or grey market premium, is available on this page. The IPO GMP is updated on a day-to-day basis during the running period of the IPO, due to which the GMP rates fluctuate and stabilise after some time. GMP rates are not 100% guaranteed. Please click here for GMP details.
Tentative Dates: R R Kabel IPO
The issue opens for subscription on September 13, 2023, and closes for subscription on September 15, 2023 (both days inclusive). The basis of allotment will be finalised on September 21, 2023, and the refunds will be initiated on September 22, 2023. In addition, the demat credits are expected to happen on September 25, 2023, and the stock will be listed on the NSE and BSE on September 26, 2023. The UPI mandate confirmation cut-off time is 5:00 PM on the issue closing day.
| Opening Date | September 13, 2023 |
| Closing Date | September 15, 2023 |
| Basis of Allotment | September 21, 2023 |
| Initiation of Refunds | September 22, 2023 |
| A credit of shares to Demat A/c | September 25, 2023 |
| Listing Date | September 26, 2023 |
Lot Size
The lot size of the R R Kabel IPO is 14 shares. A retail-individual investor can apply for up to 13 lots, i.e. 182 shares of ₹ 188,370.
| Applications | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 14 | ₹ 14,490 |
| Retail (Maximum) | 13 | 182 | ₹ 188,370 |
| S-HNI (Minimum) | 14 | 196 | ₹ 202,860 |
| S-HNI (Maximum) | 69 | 966 | ₹ 999,810 |
| B-HNI (Minimum) | 70 | 980 | ₹ 1,014,300 |
Promoters Holdings
Tribhuvanprasad Rameshwarlal Kabra, Shreegopal Rameshwarlal Kabra, Mahendrakumar Rameshwarlal Kabra, Kirtidevi Shreegopal Kabra, Tribhuvanprasad Kabra HUF, Kabra Shreegopal Rameshwarlal HUF, and Mahendra Kumar Kabra HUF are the promoters of the company.
| Pre-issue Shares Holdings | 66.42% |
| Post-issue Shares Holdings | 62.77% |
Miscellaneous Information
| Download Prospectus (PDF) | IPO DRHP |
| Company Contact Information | R R Kabel Limited Ram Ratna House, Victoria Mill Compound, Pandurang Budhkar Marg, Worli, Mumbai 400 013 Phone: +91 22 2494 9009 Email: investorrelations.rrkl @rrglobal.com Website: https://www.rrkabel.com/ |
| IPO Registrar | Link Intime India Private Ltd Phone: +91-22-4918 6270 Email: rkabel.ipo@linkintime.co.in Website: https://linkintime.co.in/mipo/ipoallotment.html |
| IPO Lead Manager(s) | • Axis Capital Limited • Citigroup Global Markets India Private Limited • HSBC Securities & Capital Markets Pvt Ltd •JM Financial Limited |
FAQs
What is R R Kabel’s IPO price?
The R R Kabel IPO price is ₹ 983 to ₹ 1035 per share.
What minimum lot size can retail investors subscribe to?
The minimum investment size is one lot for retail investors. One lot of the R R Kabel IPO contains 14 shares of ₹ 14,490.
When will the R R Kabel IPO allotment be available?
The finalisation of the basis of allotment for the R R Kabel IPO will be done on September 21, 2023, and the allotted shares will be credited to your demat account by September 25, 2023. Check the R R Kabel IPO allotment status.
When will the R R Kabel IPO be listed on exchanges?
The R R Kabel IPO shares listing date is September 26, 2023.
How many R R Kabel IPO Offer shares are reserved for HNIs and retail investors?
The investors’ portion for QIB is 50% of the Net offers, NII (HNI) is 15%, and retail is 35% of the offer.
