India is seeing a rapid increase in infrastructure projects across the country. This is benefitting both infrastructure companies as well as companies in allied sectors like the paint industry, cement, consumer electric products and more. The upcoming IPO offer is from R R Kabel Limited a company belonging to a similar allied sector which is the consumer electric products.
R R Kabel Limited IPO will open for subscription from 13th September 2023 to 15th September 2023.
Here are all the important details of R R Kabel Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
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IPO Details
The key details of R R Kabel Limited are as under.
- IPO Size
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 13th September 2023 |
| IPO Closing Date | 15th September 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face value of shares | Re. 5 per share |
| IPO Price Band | Rs. 983 – Rs. 1035 per share |
| IPO Size | Rs. 1964 crores (1,89,75,939 shares) |
| Offer for Sale | Rs. 1784 crores (1,72,36,808 shares) |
| Fresh Issue | Rs. 180 crores (17,39,131 shares) |
- IPO Dates
The important dates for R R Kabel Limited IPO are highlighted below:
| Event | Date |
| Opening date | 13th September 2023 |
| Closing Date | 15th September 2023 |
| Allotment date | 21st September 2023 |
| Refund Date | 22nd September 2023 |
| Share Credit Date | 25th September 2023 |
| Listing Date | 26th September 2023 |
- IPO Lot Sizes
Investors can subscribe to R R Kabel Limited IPO shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 13,762 – 14,490 Maximum – Rs. 1,88,370 |
| Shares | Minimum – 14 Maximum – 182 |
- IPO Reservation
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investor | 35% |
| QIB (Qualified Institutional Buyer) | 50% |
| NII (Non-Institutional Bidders) | 15% |
R R Kabel Limited IPO Objectives
This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below,
- The proceeds will be primarily used towards repayment or prepayment of the borrowings (in part or in full) that have been availed by the company from various banks and financial institutions.
- The balance proceeds from the IPO will be used for general corporate purposes.
Top things to know about R R Kabel Limited IPO
R R Kabel Limited, established in 1995, specializes in providing consumer electrical products suitable for residential, commercial, industrial, and infrastructure applications. The company operates under two primary segments and the details of the same are given here,
- Wires and Cables – This category includes a range of products including house wires, industrial wires, power cables, and special cables, all marketed under the ‘RR Kabel’ brand.
- FMEG (Fans, Lighting, Switches, Appliances) – R R Kabel offers a diverse selection of products under the ‘Luminous Fans and Lights’ brand, including fans, lighting solutions, switches, and appliances.
In 2020, R R Kabel expanded its portfolio by acquiring Arraystorm Lighting Private Limited, enabling it to enter the LED lighting and related hardware market, particularly for office, industrial, and warehouse spaces. In 2022, the company further strengthened its position by acquiring the home electrical business of Luminous Power Technologies. This acquisition granted them a limited license to use the ‘Luminous Fans and Lights brand for fan and light products. Additionally, they obtained registered trademarks and access to a premium fan and light portfolio.
R R Kabel operates two manufacturing facilities located in Gujarat and Dadra and Nagar Haveli, primarily dedicated to the production of wires, cables, and switches. In addition to these, the company owns and manages three integrated manufacturing facilities situated in Uttarakhand, Karnataka, and Himachal Pradesh, where they manufacture a wide range of FMEG products.
R R Kabel serves both domestic and international markets. In the last three months ending June 30, 2023, they generated 71% of their revenue from the sale of wires and cables, and 97% of their revenue from FMEG products, all primarily through the B2C (Business to Consumer) channel.
Is R R Kabel profitable – know the financial performance of EMS Limited
EMS Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Revenue from Operations (Rs. in cr) | Profit After Tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 2634 | 5599 | 190 | Rs.17.09 | 13.66% |
| Mar-2022 | 2051 | 4386 | 241 | Rs.19.26 | 17.29% |
| Mar-2021 | 1715 | 2724 | 135 | Rs.12.19 | 13.10% |
(Source: RHP)
What are the strengths of R R Kabel Limited?
Some of the key strengths of R R Kabel Limited IPO that investors can take note of are
| Category | Details |
| Business model | The company has a well-known brand with a well-established position in the FMEG market and technologically advanced and integrated precision manufacturing facilities.They have a broad range of products resulting from their dedicated research and development initiatives, bolstered by worldwide certifications and accreditations. |
| Other merits | RR Kabel boasts a flourishing B2C presence in the expansive wires and cables sector, supported by an extensive domestic and global distribution network. |
What is the risk of investing in R R Kabel Limited IPO?
Here are some of the risks that investors of R R Kabel Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company faces financial instability due to the unpredictability of raw material costs and operational risks stemming from potential supply shortages or disruptions.They face the risk of distribution network instability in India, including challenges in attracting new distributors, dealers, and retailers. |
| Other concerns | They face competition from both large and small domestic players in the fragmented industry segments.Business operations can be adversely impacted by any interruptions, malfunctions, or closures of their manufacturing facilities and original equipment suppliers. |
What is the Grey Market Premium (GMP) of R R Kabel Limited IPO?
As of September 12th, 2023, the grey market premium for the shares of R R Kabel Limited IPO is Rs. 218 as per market observers. This means the shares are expected to list at a premium of Rs. 218 per share over the listing cap price of Rs. 1035.
Is R R Kabel Limited IPO safe for investment?
R R Kabel Limited is a leading name in the consumer electric goods manufacturing sector. The brand name attracts a huge market even though the company has among the highest debt-equity ratios as compared to its listed peers. Investors have to consider the overall financial performance of the company and consider the industry standards before making an investment decision.
How to apply for R R Kabel Limited?
Investors can invest in this IPO through the Fisdom app.
