Ram Ratna Wires stock gains 5% on approval for 13.64 lakh shares sale in RR Kabel via IPO | Mint
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Business News/ Markets / Ipo/  Ram Ratna Wires stock gains 5% on approval for 13.64 lakh shares sale in RR Kabel via IPO
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Ram Ratna Wires stock gains 5% on approval for 13.64 lakh shares sale in RR Kabel via IPO

Ram Ratna said, the board of directors has considered and approved the proposal for the sale of its equity investment held in R R Kabel by offering up to 13,64,480 equity shares by participating in the proposed IPO of R R Kabel.

Last year, in December, RR Kabel stated that it plans to file draft prospectus papers with market regulator Sebi in May 2023. (Shutterstock)Premium
Last year, in December, RR Kabel stated that it plans to file draft prospectus papers with market regulator Sebi in May 2023. (Shutterstock)

Ram Ratna Wires, a leading manufacturer of high-quality winding wires, on Wednesday, received approval from the board of directors to sell over 13.64 lakh equity shares in R R Kabel through an initial public offering (IPO). Ram Ratna's stock gained by more than 6% in the day on Dalal Street.

In its regulatory filing, Ram Ratna said, the board of directors has considered and approved the proposal for the sale of its equity investment held in R R Kabel by offering up to 13,64,480 equity shares by participating in the proposed IPO of R R Kabel.

The equity shares offered for sale have a face value of 5 each.

There are two methods for an IPO -- either a fresh issue and offer for sale (OFS). The fresh issue is the release of new equity shares in the company for selling to investors such as qualified institutional buyers (QIBs), non-institutional investors (NIIs), and retail individual investors (RIIs).

While OFS is the process that is used by promoters, shareholders, and investors to offload their holding in a respective company in an IPO.

That being said, Ram Ratna's stake sale will be through OFS in R R Kabel IPO.

The stake sale is subject to the processes, compliances, and conditions under the applicable laws, at a such price per equity share as may be fixed and determined during the IPO process.

On BSE, at the time of writing, Ram Ratna traded at 201.95 apiece up by 5.05%. The stock has gained by at least 6.4% with an intraday high of 204.65 apiece in the day.

Its market cap is over 888 crore at the current market price.

Last year, in December, MD & Group President Shreegopal Kabra told PTI RR Kabel is planning to launch its IPO in the third quarter of 2023-24. He added that they plan for an IPO in October-November of 2024, which will be subject to the market conditions, and for which they plan to file preliminary papers with Sebi in the first half of May of 2023.

Ram Ratna is the leading manufacturer and supplier of quality winding wires in the electrical equipment industry. The company's products in various equipment including transformers, cables, transmission lines, switchgear, capacitors, etc. It is a part of RR Global which is one of the leading conglomerates in the electrical & copper industry.

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Published: 12 Apr 2023, 02:32 PM IST
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