BackRR Kabel share price lists at better-than-expected premium. Buy, hold or exit?
RR Kabel share price opened on BSE at ₹1,179 apiece levels whereas on NSE, it listed at ₹1,180 apiece levels
PremiumStock market today: RR Kabel shares listed at better-then-expected premium of 14 per cent against the issue price of ₹983 to ₹1,035 per equity share. RR Kabel share price opened on BSE at ₹1,179 apiece levels whereas on NSE, it listed at ₹1,180 apiece levels. This listing is better than the market expectations as both grey market and stock market experts had predicted 8-10 per cent listing premium for the allottees. After listing at 14 per cent premium, RR Kabel share price further went upside and went on to hit intraday high of ₹1,198 apiece on NSE while on BSE, it climbed to intraday high of ₹1,198.05 per share levels. However, profit booking soon triggered in the scrip and the stock went down to ₹1,143.10 on BSE and ₹1,136.80 on NSE.
According to market experts, RR Kabel Ltd is sitting at higher valuations and its PE multiple is higher than its peers as margins of its peers are higher than RR Kabel. So, one should book listing profits and exit as other stocks of the segment are expected to outperform RR Kabel shares in upcoming sessions.
RR Kabel share price outlook
Advising RR Kabel shareholders to book listing profit, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, "Around 90 per cent of the net procees of the public issue were reserved for OFS that means 90 per cent of the net proceeds will go to the pockets of promoters offloading their shareholding. Hence, the public issue won't have much impact on the financials of the company and hence it is expected to remain at higher valuations against its peers."
Echoing with Arun Kejriwal's views, Prashanth Tapse, Senior Vice President — Research at Mehta Equities said, "RR Kabel IPO was launched at higher valuations, which was obvious in current market scenario. However, after listing at better-than-expected premium, RR Kabel shareholders are advised to book profit and exit as its peers like KEI, Polycab, etc., are expected to outperform RR Kabel in upcoming sessions."
On those who missed to get RR Kabel shares during allotment process, Prashanth Tapse of Mehta Equities said, "Fresh investment is not advisable at current levels. One should look at other public issue or other options in the same segment instead of RR Kabel shares."
RR Kabel IPO details
At the upper end of the price band, RR Kabel IPO was aiming to raise ₹1,964.01 crore from the IPO. The IPO comprised 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 offloaded 1.29 crore equity shares, while public shareholder Ram Ratna Wires sold out its entire shareholding of 13.64 lakh shares.
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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