TPG-backed cable maker RR Kabel gets Sebi approval for IPO
RR Kabel has received a regulatory nod to raise funds through an IPO. The company said it has secured a final observation letter from the market regulator.
In Sebi's parlance, a final observation letter is equivalent to an approval.
The company filed draft papers in May this year.
The IPO is a fresh issue of up to Rs 225 crore and an offer for sale (OFS) of up to 17,236,808 equity shares of face value of Rs 5 each.
RR Kabel 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.
TPG Asia VII SF Pte Ltd, a US-based private equity firm that holds a 20.99% stake in RR Kabel, will be selling some of its stake in the company through the IPO.
R R Kabel is a part of R R Global Group with revenues of Rs 4,386 crore in FY22. The company’s revenue for the nine months ending December 2022 stood at Rs 4,083 crore.
Net profit came in at Rs 214 crore and Rs 125 crore for FY22 and nine months ending December 2022, respectively.
The company is a leading player in the Indian consumer electrical industry comprising wires and cables and fast-moving electrical goods (FMEG), with an operating history of over 20 years in India.
RR Kabel is also the fastest-growing consumer electrical company among peers in India, growing at a CAGR of 33% between FY20 and FY22, according to a report from Technopak.
It has a market share of about 8% in market value in FY22. RR Kabel derives the highest revenue contribution from the business-to-consumer sales channel in wires and cables, with approximately 75% of revenue coming from the B2C sales channel in FY22.
It is also the largest exporter of wires and
