Last Updated: September 20, 2023, 10:14 IST
RR Kabel Listing on BSE, NSE: Shares of RR Kabel began trading at Rs 1,180, which is a 14 percent premium to its IPO price of Rs 1,035.
The wires and cables company became the first T+2 listing in the Indian primary markets as the shares began trading three days after their IPO closed for subscription.
The company has become the first IPO firm to complete its listing under the T+2 timeline. Under this norm, an IPO firm needs to complete its listing process within three working days from the closure of the IPO.
The Rs 1,964.01 crore worth RR Kabel IPO opened for public subscription on September 13 and closed on September 15. The IPO comprised a fresh issue size of Rs 180 crore and an offer for sale (OFS) segment of up to 1.72 crore equity shares.
The IPO received a decent response from investors with the overall subscription at 18.69 times. All the categories were fully subscribed, led by institutional investors (52.26x). The retail part was the least subscribed at 2.13x.
RR Kabel is India’s fastest-growing consumer electric company over FY21-FY23 and the fifth largest in the wires and cable space with a branded value market share of 7% at FY23-end.
Its revenue, EBITDA and PAT grew at a CAGR of 31%, 16% and 16% respectively over FY20-23. Analysts estimate the same to grow at a CAGR of 16%, 33% and 36%, respectively, over FY23-26.
The company proposes to utilise the net proceeds towards the funding of repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions estimated to be Rs 170 crore.
According to stock market experts, RR Kabel IPO received moderate response from investors in categories other than QIB. However, the public issue is expected to benefit from the bull trend continuing on Dalal Street. They said that in case the Indian stock market extends its rally for yet another session today, we may see RR Kabel share price listing at around Rs 1320 whereas in case of profit-booking trigger, the listing may took place around Rs 1200 apiece levels. But, experts maintained that RR Kabel listing price would be higher than RR Kabel IPO price of Rs 983 to Rs 1035 apiece. They said that the book build issue was priced at higher valuations and hence listing of RR Kabel shares may take place at ‘moderate’ premium.
Expecting ‘moderate’ listing of RR Kabel shares, Ravi Singhal, CEO at GCL Broking said, “RR Kabel IPO is going to create history by listing on Indian bourses on a T+2 trading day. However, the public issue was priced at higher valuations due to which the stock received moderate demand in all categories except QIB segment. So, we are expecting to happen that on the listing date as well. In bears’ case, RR Kabel share price may open at around Rs 1200 whereas in bulls’ case, RR Kabel shares may list at around Rs 1320 apiece levels. So, the share may debut in between Rs 1200 to Rs 1320 range depending upon the market sentiments during opening bell today.”