RR Kabel IPO hits market
It's peers include names like Bajaj Electricals, Crompton Greaves, Havells, V-Guard among others. In last 3 years, its profit has increased from Rs 122.40 crore to Rs 189.87 crore. While revenues went up from Rs 2,505.54 crore to Rs 5,633.64 crore from FY20 to FY23.
Although IPO market is quite active nowadays but its been so long that we have seen a large ticket IPO. So latest IPO on the mainboard is a good addition on that front. The latest IPO to hit the primary market is R R Kabel. It is one of the major player in the Indian cables and wires industry. By value it is 5th largest company in the space and is reported to be the company that is growing at the fastest pace in consumer electrical segment in India. The company has in house integrated business model and has a robust distribution network. Company also a good brand value. However, competetion can impact its business.
It’s peers include names like Bajaj Electricals, Crompton Greaves, Havells, V-Guard among others. In last 3 years, its profit has increased from Rs 122.40 crore to Rs 189.87 crore. While revenues went up from Rs 2,505.54 crore to Rs 5,633.64 crore from FY20 to FY23.
Coming to IPO details. The issue will remain open from 13th September to 15th September. It issue price band is Rs 983 to Rs 1035. Total issue size is Rs 1,964.01 crore while fresh issue is just Rs 180 crore. So its existing promoters that are exiting the company. After the IPO, the shareholding of promoters will fall from 66.42% pre issue to 62.77% post issue. Major promoter to reduce their stake is TPG. The US private Equity firm acquired 21% stake in 2018 and average acquisition price during that time was Rs 270. During pre-IPO placement, the firm sold 4.4% stake and post IPO its stake is reported to fall down to close to 6%. The PE firm will make around 4 times return on its exit.