RR Kabel IPO: Dates, Price Range, Composition & Investment Opportunities

RR Kabel IPO: Dates, Price Range, Composition & Investment Opportunities
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RR Kabel IPO: Key Details for Investors

If you’re considering investing in the RR Kabel IPO, you’ve come to the right place. Here are the vital details you need to know to make an informed decision:

IPO Dates:

Mark your calendar for September 13 to September 15, when the RR Kabel IPO opens for subscription. Prior to that, on September 12, an anchor book will provide a sneak peek into this exciting financial opportunity.

Price Range:

The share price range for RR Kabel’s IPO is set at Rs 983-1,035 per share. At the upper end of this range, the company aims to raise a substantial Rs 1,964 crore, promising potential investors an attractive proposition.

IPO Composition:

The IPO consists of two main components. First, there’s a fresh issue of equity shares valued at Rs 180 crore.

Additionally, there’s an offer for sale (OFS) of 1,72,36,808 equity shares, worth an impressive Rs 1,784 crore at the upper price band. Notably, the OFS includes contributions from various stakeholders, with TPG Asia VII SF Pte Ltd leading the pack by divesting 1.29 crore equity shares.

Public shareholder Ram Ratna Wires is also participating by selling its entire shareholding of 13.64 lakh shares.

Employee Benefit:

RR Kabel values its employees and has allocated Rs 10.8 crore worth of shares exclusively for them. What’s more enticing is that these employees will enjoy a special discount of Rs 98 per share compared to the final offer price, adding a unique twist to the IPO.

Utilization of Funds:

RR Kabel operates across two expansive segments. The first is wires & cables, a segment that contributed a robust 71 percent to the company’s top-line earnings in the quarter ending June FY24. The second encompasses fast-moving electrical goods (FMEG), featuring products such as fans, lights, switches, and appliances.

Merchant Bankers:

Leading this financial journey are seasoned merchant bankers, including Axis Capital, HSBC Securities and Capital Markets (India), Citigroup Global Markets India, and JM Financial. Their expertise and guidance will be instrumental in steering the IPO to success.

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Invest in RR Kabel: A Lucrative Opportunity

Awards and Recognition:

Trailblazer HR Initiative Award: RR Kabel’s dedication to an inclusive workplace, recognized at the CHRO Vision & Innovation Awards 2023.

Great Place To Work Certification: Highlighting RR Kabel’s commitment to a brilliant and employee-centric workplace.

Best Brand in Building Material & Fittings: RR Kabel’s relentless pursuit of quality products, awarded at the ET Infra Focus Summit & Awards.

Kaizen Excellence Award: Recognizing exceptional productivity and environmental efforts.

Pride of India: Celebrating RR Kabel’s unwavering commitment to excellence with The Best Of Bharat Awards 2022.

Safety First: Awarded a Gold Trophy for innovative workplace safety strategies.

Elecrama Recognition: Notable industry presence as first runners-up in the largest stall category at Elecrama 2018.

Quality and Innovation:

Rigorous R&D: RR Kabel prioritizes product quality through meticulous research and development.

Dedicated R&D Facilities: Approved R&D units in Silvassa and Waghodia, endorsed by DSIR.

Accredited Testing Labs: NABL-accredited central quality and test laboratory in Waghodia conducting over 700 tests.

Well-Equipped Labs: Extensive laboratories for process monitoring, raw material testing, and product type testing.

Advanced Equipment: High-tech equipment investment at the Gagret facility.

Global Standards: All RR Kabel products meet national and international quality standards.

Unique Manufacturing Process: A 4-step manufacturing process sets RR Kabel apart, involving market research, 3D design, prototype validation, and in-house lab testing.

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Financial Strength:

Over three consecutive years (2021-2023), RR Kabel demonstrates financial prowess:

Reserves: ₹397.55 million Sales: ₹7,001.94 million Profit after Tax: ₹995.98 million Earnings per Share: ₹34.37 Net Asset Value: ₹15.71 million .

Growth Potential:

RR Kabel’s consistent revenue growth, coupled with its commitment to excellence, positions it as an attractive long-term investment. This company boasts a strong financial track record, making it a stable and promising opportunity for investors.

Investment Flexibility and Minimum Requirements :

Investors have flexibility when it comes to bidding. The minimum requirement is 14 equity shares, with the option to increase their stake in multiples of 14 shares. Retail investors, in particular, have an accessible entry point with a minimum investment of Rs 14,490 for 14 shares, while high net worth individuals, with an investment limit ranging from Rs 2 lakh to 10 lakh, can initiate investments at a minimum of Rs 2,02,860 for 196 shares, reaching a maximum investment cap of Rs 9,99,810 for 966 shares.

Invest with Confidence: Your Path to Prosperity

As the RR Kabel IPO approaches, the stage is set for an exciting journey into the world of investment. With attractive pricing, a diverse IPO composition, and an employee-friendly approach, RR Kabel stands out as an appealing opportunity.

Investors, both retail and high net worth individuals, have the flexibility to tailor their investments to their preferences, making it accessible to a wide range of participants.

Furthermore, RR Kabel’s commitment to financial prudence, robust business segments, and guidance from seasoned merchant bankers instill confidence in its future growth potential.

FAQs :

What are the IPO dates for RR Kabel, and how can I subscribe?

The RR Kabel IPO is open for subscription from September 13 to September 15, with an anchor book opening on September 12. To subscribe, you can do so through your demat account with any registered stockbroker.

What is the price range of RR Kabel’s IPO shares, and how does it affect the company’s fundraising goals?

RR Kabel’s IPO share price range is set at Rs 983-1,035 per share. At the upper end of this range, the company aims to raise Rs 1,964 crore. A higher share price allows the company to raise more funds, potentially impacting its expansion plans and financial stability.

What are the minimum and maximum investments for retail and high net worth individuals?

Minimum: 14 shares, starting at Rs 14,490 for retail and Rs 2,02,860 for high net worth individuals.

How will RR Kabel use the IPO funds?

Primary use: Repay Rs 136 crore debt; remaining for general corporate purposes.

What are RR Kabel’s business segments?

Two segments – wires & cables (71% revenue) and fast-moving electrical goods (FMEG), including fans, lights, switches, and appliances.

Tell me about the special discount for RR Kabel employees.

Rs 98 per share discount for employees adds a unique dimension to the IPO.

Explain RR Kabel’s IPO composition.

Two parts – Rs 180 crore fresh issue and Rs 1,784 crore offer for sale (OFS), including contributions from TPG Asia VII SF Pte Ltd and Ram Ratna Wires.

Disclaimer:

The information provided in this blog is for general informational purposes only and should not be considered as professional financial or investment advice. Always conduct thorough research and seek advice from a qualified financial advisor before making any investment decisions. The blog author and publisher are not responsible for any actions taken based on the information provided in this blog. Any reliance on the content is at your own risk. Remember that the financial markets can be volatile, and past performance is not indicative of future results. The company mentioned in the blog may have undergone changes or developments that are not reflected here. Please verify the information with credible sources before making any financial decisions.

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