RR Kabel to become first IPO company to list under T+2 timeline
RR Kabel is all set to become the first IPO firm to complete its listing under T+2 timeline. The company will complete its stock listing on September 20,2023
PremiumAfter its successful subscription, RR Kabel will complete the listing of its equity shares on stock exchanges on September 20. With this the company has become the first, IPO firm to complete its listing under T+2 timeline.
Under this norm, an IPO firm needs to complete its listing process within three working days from the closure of the IPO. The issue price for the current public issue was set at Rs. 1035/- per share (Face Value of Rs. 5/- and premium of Rs. 1030/-). JM Financial is Post Issue Banker to IPO of RR Kabel Limited.
“Trading Members of the Exchange are hereby informed that effective from Wednesday, September 20, 2023, the equity shares of R R KABEL LIMITED shall be listed and admitted to dealings on the Exchange in the list of 'B ' Group of Securities," stated a BSE notice issued on Monday.
The company's act was voluntary and SEBI has not made the deadline mandatory for IPO firms till November 30. Currently, the companies follow T+6 timeline for IPO listing. However, banks have been pushing to reduce the timeline from T+6 to T+3.
About SEBI's new T+3 norm
In its notice, released on August 9, SEBI laid out a clear guideline for IPO firms to complete their listing as per the T+3 timeline. Currently, the IPO market functions on a T+6 system. Under this system, IPO stock needs to be listed on the stock exchanges within six working days from the closure of the IPO. Under the new timeline, the period is reduced from six days to three days. After its implementation, IPOs would need to complete their stock listing process by three working days from the closure of the IPO.
The timeline will be implemented in two phases. The first timeline will be applicable for public issues between September 1,2023 and November 30, 2023. During this phase, it will be upon the firms to choose between the new and the old deadline. However, the new deadline will be mandatory for all the firms from December 1, 2023.
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