The company listed within two days of the IPO close, making it the fastest company to debut on the exchanges.
The markets regulator has recently announced changes to IPO listing rules, reducing the timeline from T+6 days to T+3 days, where ‘T’ is the IPO closing date.
However, for IPOs that came after September 1, new listing rules are applied on a voluntary basis.
RR Kabel’s Rs 1,964-crore IPO, which comprised a fresh issue size of Rs 180 crore and an offer for sale (OFS) of up to 1.72 crore equity shares, closed on September 15.
The issue received a decent response from investors with the overall subscription at 18.69 times. All the categories are fully subscribed, led by institutional investors (52.26x). The retail part was the least subscribed at 2.13x.
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.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.
For the three months ended June 2023, the company clocked revenues of Rs 1,613 crore, up 30% over the previous year. The profit grew multifold to Rs 74.3 crore from just Rs 18.1 crore a year ago.
Axis Capital, HSBC Securities and Capital Markets (India), Citigroup Global Markets India and JM Financial are the book-running lead managers to the issue.
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