R R Kabel IPO Date, Review, Allotment & Listing Dates

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RR Kabel, a wire and cable manufacturing company with the backing of global private equity firm TPG, is gearing up for its initial public offeringR R Kabel IPO, which is scheduled to open for subscription on September 13. The IPO will consist of a fresh issue of shares amounting to Rs 180 crore and an offer for sale of 1.72 crore equity shares by the company’s promoters and investors. The total fundraising target for this IPO is expected to reach Rs 1,000 crore, with the fresh issue accounting for ₹180 crores and the offer for sale comprising up to 17,236,808 equity shares, each priced at ₹5. The allocation for investors is divided as follows: 35% for retail investors, 50% for Qualified Institutional Buyers (QIB), and 15% for High Net Worth Individuals (HNI).

RR Kabel is a prominent player in the Indian consumer electrical industry with a rich history spanning over two decades. The company operates in two main segments:

1. Wires and Cables: This segment encompasses a wide range of products, including house wires, industrial wires, power cables, and special cables. RR Kabel has been active in this segment since Fiscal 1999, establishing itself as a reliable brand.
2. FMEG (Fast-Moving Electrical Goods): In this category, RR Kabel offers products like fans, lighting, switches, and appliances. These products are sold under different brands: ‘RR Kabel,’ ‘RR,’ and ‘Luminous Fans and Lights.’

The company manufactures, markets, and sells wires and cable products under the ‘RR Kabel’ brand. Additionally, they offer various consumer electrical products such as fans and lights under the ‘RR’ brand, which is licensed by the company. They also manufacture and market fans and lights under the ‘Luminous Fans and Lights’ brand.

Here’s a brief overview of the operating history of these brands:

• ‘RR Kabel’ has been established for over 20 years.
• ‘RR’ brand has been operating for over 7 years.
• ‘Luminous Fans and Lights’ brand, licensed by RR Kabel, has a history of over 10 years.

RR Kabel has actively expanded its product portfolio in adjacent areas, both organically and through acquisitions:

• In Fiscal 2020, they integrated the business of Ram Ratna Electricals Limited (RREL).
• In the same year, they acquired the LED lights and related hardware business of Arraystorm Lighting Private Limited.
• In May 2022, RR Kabel expanded its footprint by acquiring the home electrical business of Luminous Power Technologies Private Limited.

The Indian consumer electrical industry has witnessed significant growth, with an estimated market value of ₹1,615.00 billion in Fiscal 2022. It is expected to continue growing at a compounded annual growth rate (CAGR) of 11% until Fiscal 2027, reaching a market value of approximately ₹2,665.00 billion.

In terms of revenue channels, RR Kabel derives 73% of its revenue from the B2C (business-to-consumer) channel for the wires and cables segment and 95% for the FMEG segment in the nine months ending December 31, 2022. B2C sales generally yield higher gross margins compared to B2B (business-to-business) sales, according to Technopak.

RR Kabel has received several awards and recognitions for its brands, including the Best Brand in the Building Material and Fittings category at the ET Infra Focus Summit and Awards 2022, the Marketing Campaign of the Year 2018 award by ABP News Brand Excellence Award, and the Power Brand India 2017 award in the “Industry Trendsetter” category. Additionally, they have been honored with the Pride of India Brands Award in 2022.

The objectives of the RR Kabel IPO include:

1. Repayment or Prepayment of Borrowings: The IPO proceeds will be used to repay or prepay, either in full or in part, the borrowings that the company has availed from banks and financial institutions. This action is aimed at reducing the company’s debt burden and interest costs, which can lead to improved financial stability.
2. General Corporate Purposes: A portion of the funds raised through the IPO will be allocated for general corporate purposes. These purposes may include working capital requirements, capital expenditure, and other operational needs essential for the company’s ongoing business operations and growth initiatives.

These objectives reflect the typical utilization of funds raised through an IPO, with a focus on strengthening the company’s financial position and supporting its future growth and development.

Here are the RR Kabel IPO date and price band details:

• IPO Open: September 13, 2023
• IPO Close: September 15, 2023
• IPO Size: Approximately ₹1000 Crores
• Fresh Issue: Approximately ₹180 Crores
• Offer for Sale: Approximately 17,236,808 Equity Shares
• Face Value: ₹5 Per Equity Share
• IPO Price Band: ₹983-1,035 per Share
• IPO Listing on: BSE (Bombay Stock Exchange) & NSE (National Stock Exchange)
• Retail Quota: 35%
• QIB (Qualified Institutional Buyers) Quota: 50%
• NII (Non-Institutional Investors) Quota: 15%
• Discount: N/A

For more detailed information, you can refer to the DRHP (Draft Red Herring Prospectus) and RHP (Red Herring Prospectus) linked in the provided documents. Additionally, the Anchor Investors List is available for reference.

R R Kabel IPO – Lots Size & Price

Investor Category	Application Lot Size	Number of Shares	Amount (₹)
Retail Minimum	1	14	₹14,490
Retail Maximum	13	183	₹188,370
S-HNI Minimum	14	196	₹202,860
B-HNI Minimum	70	980	₹1,014,300

Here are the RR Kabel IPO allotment and listing dates:

• Basis of Allotment: September 21, 2023
• Refunds: September 22, 2023
• Credit to Demat Account: September 25, 2023
• IPO Listing Date: September 26, 2023

Please note that the IPO allotment date and listing date are subject to change, and it’s essential to check for official announcements or updates from the company or the stock exchanges for the most accurate and up-to-date information regarding the RR Kabel IPO schedule.

Company Financials
Particulars	Total Revenue	Total Expense	Profit After Tax	Total Borrowing
31 March 2021	2745.93	2565.60	135.39	498.71
31 March 2022	4432.21	4152.05	213.93	521.11
31 March 2023	5633.64	5378.59	189.87	515.84

RR Kabel IPO Valuation – FY2023

Earning Per Share	₹11.19 per Equity Share
Return on Net Worth	9.39%
Net Asset Value	₹119.46 per Equity Share

The provided list includes peer companies in the electrical and cables industry that can be used for benchmarking and comparison purposes with RR Kabel:

1. Havells India Limited: Havells is a well-known electrical equipment company in India, offering a wide range of products including lighting, fans, wires, and cables.
2. Polycab India Limited: Polycab is a leading manufacturer of wires and cables in India, known for its diverse product range in the electrical industry.
3. KEI Industries Limited: KEI Industries is another prominent player in the wires and cables sector, producing a variety of electrical cables and conductors.
4. Finolex Cables Limited: Finolex Cables is known for manufacturing electrical and communication cables and has a strong presence in the market.
5. V-Guard Industries Limited: V-Guard focuses on electrical appliances and electronics, including voltage stabilizers, inverters, and fans.
6. Crompton Greaves Consumer Electricals Limited: Crompton Greaves is a company specializing in consumer electrical products such as fans, lighting, and appliances.
7. Bajaj Electricals Limited: Bajaj Electricals is a well-established brand offering a wide range of electrical products, including lighting, fans, and appliances.

These peer companies operate in related sectors within the electrical and cables industry and can provide valuable insights when evaluating RR Kabel’s performance and market position in comparison to its competitors. Investors often use such peer group analysis to assess the relative strengths and weaknesses of a company within its industry.

The promoters of RR Kabel are:

1. Tribhuvanprasad Rameshwarlal Kabra
2. Shreegopal Rameshwarlal Kabra
3. Mahendrakumar Rameshwarlal Kabra
4. Kirtidevi Shreegopal Kabra
5. Tribhuvanprasad Kabra HUF (Hindu Undivided Family)
6. Kabra Shreegopal Rameshwarlal HUF (Hindu Undivided Family)
7. Mahendra Kumar Kabra HUF (Hindu Undivided Family)

These individuals and Hindu Undivided Families collectively hold significant ownership stakes in the company and play a key role in its management and decision-making processes as promoters. Promoters typically have a vested interest in the success and growth of the company.

The registrar for the RR Kabel IPO is:

• Link Intime India Private Ltd

• Email: rkabel.ipo@linkintime.co.in
• Website: www.linkintime.com

The lead managers or merchant bankers for the RR Kabel IPO are:

• Axis Capital Limited
• Citigroup Global Markets India Private Limited
• HSBC Securities & Capital Markets Pvt Ltd
• JM Financial Limited

Company Address:

• RR Kabel Limited, Alembic Business Park (West), Ground Floor, Bhailal Amin Marg, Gorwa, Vadodara 390 003, Gujarat, India

• Phone: +91 22 24949009
• Email: investorrelations.rrkl@rrglobal.com
• Website: www.rrkabel.com

These entities play crucial roles in managing and facilitating the IPO process, including handling the application process, allotment of shares, and other related activities. Investors can contact the registrar or lead managers for any queries or concerns regarding the IPO.