TPG-backed RR Kabel's IPO to open on September 13. Check details here
economictimes.indiatimes.com
The company received approval from Sebi in the last week of August.
The fresh issue size in the offer has been reduced to Rs 180 crore from Rs 225 crore earlier. The IPO also includes an offer for sale (OFS) segment of up to 1.72 crore equity shares.
The price band for the issue will be announced soon.
Under the OFS, 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.
Other OFS selling shareholders include promoters Mahendrakumar, Hemant Mahendrakumar, Sumeet Mahendrakumar, and Kabel Buildcon.
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.
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 share of about 8% in market value in FY22. The company 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.
RR Kabel’s revenue contribution from the FMEG segment, which stood at 10.92% for the nine months that ended December 31, 2022, is the highest among peers.
For the three months ended June 2023, the company clocked revenues of Rs 1,613 crore and a profit of Rs 74.3 crore.
Axis Capital, HSBC Securities and Capital Markets
