RR Kabel Shares List at 14% Premium Against Issue Price

RR Kabel Shares List at 14% Premium Against Issue Price

VoM News Desk | September 20, 2023 | 06:37 AM IST | Breaking News | Follow on Google News

RR Kabel Shares List at 14% Premium Against Issue Price

RR Kabel shares made a strong debut on the stock exchanges by listing at a better-than-expected premium of 14% against the issue price. The IPO, which had a price band of ₹983 to ₹1,035 per equity share, saw its shares open at ₹1,179 on the BSE and ₹1,180 on the NSE. However, the stock later experienced profit booking and traded lower.

Market experts had anticipated an 8-10% listing premium, making RR Kabel’s listing performance more favorable than expected. Despite the initial surge, experts advise caution, as the company’s valuation is relatively high compared to its peers in the industry. RR Kabel’s higher price-to-earnings (PE) multiple makes it less attractive, especially as its peers have lower margins.

Given the valuation and competition within the sector, experts suggest that investors who received shares during the IPO allotment process should consider booking listing profits and potentially exiting their positions. They also caution against fresh investments in RR Kabel shares at the current levels, recommending that investors explore other investment opportunities in the same segment or in different initial public offerings (IPOs).

RR Kabel’s IPO aimed to raise ₹1,964.01 crore, with a 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 promoters and investors. TPG Asia VII SF Pte Ltd and public shareholder Ram Ratna Wires were among the selling shareholders.

Investors should make informed decisions based on their financial goals, risk tolerance, and market conditions when considering investments in IPOs and newly listed stocks.

VoM News Desk

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