On September 20, RR Kabel will make its stock market debut, and based on the most recent grey market trends, the stock may be offered at a premium.
The business has completed its offering under the T+2 schedule, making it the first IPO firm to do so. According to this standard, an IPO business must finish the listing process three working days after the IPO’s conclusion.
The company’s action was optional, and up to November 30th, SEBI has not made the deadline mandatory for IPO businesses. The firms now adhere to the T+6 timeframe for IPO listing. Banks have pushed to move the deadline from T+6 to T+3, nevertheless.
With a face value of 5 and a premium of 1,030, the current public issue’s issue price was fixed at $1,035. The IPO of RR Kabel Limited’s Post Issue Banker is JM Financial.
For more than 20 years, RR Kabel has specialized in wires & cables (W&C) and fast-moving electrical goods (FMEG), making it a significant participant in the Indian consumer electrical sector.
In the RR Kabel initial public offering, the business reserved a maximum of 50% of the shares for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and 35% for retail investors.
Additionally, the business reserved 1.15 lakh shares for its workers, who are now being offered shares at a price that is 98 rupees a share less than the final offer price.
RR Kabel IPO GMP today
Market participants estimate that the RR Kabel IPO’s grey market premium (GMP) is currently $96. This suggests that shares of RR Kabel are selling at a premium on the secondary market today (19 September), one day before they are listed.
The predicted listing price of RR Kabel’s IPO share price is 1,131, which is 9.3% more expensive than the IPO price of 1,035 when taking into account the top end of the IPO pricing band and the existing premium on the grey market.
RR Kabel IPO details
The public subscription period for the 1,964.01 crore RR Kabel IPO began on September 13 and ended on September 15. It included a new issue of equity shares worth 180 crore and an offer for sale (OFS) by the promoters and investors of 1.72 crore equity shares worth 1,784 crore.
TPG Asia VII SF Pte Ltd sold 1.29 crore equity shares in the OFS, while public stakeholder Ram Ratna Wires sold all 13.64 lakh of its shares.
Promoter Mahendrakumar Kabra, Hemant Kabra, Sumeet Kabra, and Kabel Buildcon Solutions, a member of the promoter group, were additional selling stockholders in the OFS.
RR Kabel’s IPO lot size was 14 shares and the minimum investment amount required by retail investors was ₹14,490.
RR Kabel IPO was subscribed 18.69 times overall. The QIB portion was subscribed 52.26 times, NII was subscribed 13.23 times, and retail was subscribed 2.13 times.
The company plans to utilise the fresh issue proceeds mainly for repaying debt amounting to ₹136 crore, and for general corporate purposes.