BackRR Kabel IPO: Issue subscribed 1.40 times on day 2; check GMP, subscription status, other key details
RR Kabel IPO price band is ₹983 to ₹1,035 per share. At the upper end of the price band, RR Kabel IPO issue size is ₹1,964.01 crore.
PremiumRR Kabel IPO Subscription Status: The initial public offering (IPO) of RR Kabel has witnessed lukewarm interest from investors so far. RR Kabel IPO opened for subscription on September 13 and will close on Friday, September 15.
The company has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
In the RR Kabel IPO, the company has reserved ₹10.8 crore worth shares for its employees. It is offering shares to employees at a discount of ₹98 per share to the final offer price.
RR Kabel IPO Subscription Status
RR Kabel IPO has been subscribed 1.40 times on Thursday, the second day of the bidding process. The public issue received bids for 1,85,85,910 shares against 1.33 crore equity shares on offer, according to data from the BSE.
The retail investors’ portion was subscribed 95%, the NII portion was booked 2.10 times, while the employee portion was subscribed 1.52 times. The QIB quota was subscribed 1.65 times.
Also Read: RR Kabel IPO opens: GMP, price band, dates and other key details to know
RR Kabel IPO details
RR Kabel IPO price band is ₹983 to ₹1,035 per share. At the upper end of the price band, RR Kabel IPO issue size is ₹1,964.01 crore, which comprises fresh issue of equity shares worth ₹180 crore and an offer for sale (OFS) of 1.72 crore equity shares worth ₹1,784 crore by the promoters and investors.
In the OFS, TPG Asia VII SF Pte Ltd will offload 1.29 crore equity shares, while public shareholder Ram Ratna Wires will sell its entire shareholding of 13.64 lakh shares.
Other selling shareholders in the OFS include promoters Mahendrakumar Kabra, Hemant Kabra, Sumeet Kabra and Kabel Buildcon Solutions, a part of the promoter group.
RR Kabel IPO lot size is 14 shares and the minimum investment amount required by retail investors is ₹14,490.
The company plans to utilise the fresh issue proceeds mainly for repaying debt amounting to ₹136 crore, and for general corporate purposes.
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RR Kabel IPO GMP today
RR Kabel IPO GMP today, or grey market premium today, is ₹146 per share. This indicates RR Kabel shares are trading at a premium of rs 146 in the grey market on Thursday, according to topsharebrokers.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of RR Kabel IPO share price is ₹1,181 apiece, which is 14.11% higher than the IPO price of ₹1,035.
Grey market premium indicates investors' readiness to pay more than the issue price.
RR Kabel IPO Review
On FY23 financials the company has reported an average EPS of ₹16.97 (fully diluted) and an average RoNW of 14.78% for the last three fiscals.
“The structural growth drivers for consumer electrical business continues to remain strong, RR Kabel has a diverse suite of products, scaled the business in B2C in W&C, expanding the FMEG segment using its extensive global and domestic network building a strong consumer brand. We believe the premiumisation path could potentially result in structural margin expansion and B2C sales are likely to remain strong in coming years, the recent correction in input prices and the strong surge in multiple demand drivers augurs well for the company, we recommend a Subscribe to the issue," Reliance Securities said in a report.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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