RR Kabel Raises ₹585 Crore from Anchor Investors Ahead of IPO

RR Kabel Raises ₹585 Crore from Anchor Investors Ahead of IPO
RR Kabel Raises ₹585 Crore from Anchor Investors Ahead of IPO
RR Kabel Raises ₹585 Crore from Anchor Investors Ahead of IPO
RR Kabel Raises ₹585 Crore from Anchor Investors Ahead of IPO

RR Kabel Raises ₹585 Crore from Anchor Investors Ahead of IPO

RR Kabel Raises ₹585 Crore from Anchor Investors Ahead of IPO. Image/Company Website

RR Kabel has successfully raised ₹585 crore from anchor investors just a day before its initial public offering (IPO) is set to open for subscription. The TPG-backed company’s IPO is scheduled to open on September 13 and close on September 15. The price band for the IPO has been fixed at ₹983 to ₹1,035 per equity share with a face value of ₹5 each.

Anchor Investors in RR Kabel IPO

Among the anchor investors are well-known names such as HDFC Mutual Fund, Axis Mutual Fund, Nippon India Mutual Fund, Aditya Birla Sun Life Mutual Fund, SBI Life Insurance, HDFC Life Insurance Company, Abu Dhabi Investment Authority, Morgan Stanley Asia (Singapore) Pte, Elara India Opportunities Fund, and Government Pension Fund Global.

RR Kabel’s Position in the Industry

RR Kabel is a prominent player in the fast-moving electrical goods (FMEG) and wires and cables sectors of the consumer electrical industry. With over 20 years of history in India, the company holds the fifth-largest market share by value in the country’s wires and cables industry. In 2022, RR Kabel was one of the top exporters of wires and cables in India, accounting for approximately 9% of the country’s total exports.

IPO Details and Use of Proceeds

At the upper end of the price band, RR Kabel aims to raise ₹1,964.01 crore from the IPO. The offering consists of a fresh issue of equity shares worth ₹180 crore and an offer for sale (OFS) of 1.72 crore equity shares valued at ₹1,784 crore by promoters and investors. TPG Asia VII SF Pte Ltd will sell 1.29 crore equity shares in the OFS, while public shareholder Ram Ratna Wires will divest its entire shareholding of 13.64 lakh shares. The IPO lot size is 14 equity shares and multiples of 14 equity shares thereafter.

Proceeds from the fresh issue will primarily be used to repay debt amounting to ₹136 crore and for general corporate purposes. Following the IPO’s conclusion, RR Kabel shares are expected to be listed on both the BSE and NSE on September 26.

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