R R Kabel Limited IPO (R R Kabel IPO) Date, Price, Details, GMP, Review

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Dear Investor R R Kabel’s IPO opens on 13 September and closes on 15 September 2023, price of ₹983 to ₹1035 per share. R R Kabel Limited IPO total issue size is Rs 1,964.01 Cr.

R R Kabel Limited Company Details

RR Kabel Limited Company was started in 1195, this company produces electric products in the market. Their products are made for residential, commercial, industrial, and infrastructure purposes. RR Cable Company manufactures electrical products like Wires and cables, Switches, Fans, Lighting, switchgear, and appliances, Their products are of good quality and advanced.

The company operates two manufacturing facilities in Waghodia, Gujarat, and Silvassa, Dadra, and Nagar Haveli, as well as Daman and Diu. These units are primarily dedicated to the production of wire and cables, as well as switches. Additionally, the company possesses and manages three integrated manufacturing plants situated in Roorkee, Uttarakhand; Bengaluru, Karnataka; and Gagret, Himachal Pradesh, where manufacturing activities related to FMEG (Fast-Moving Electrical Goods) products take place.

R R Kabel serves clients from both the domestic and international markets. During the last three months ending on June 30, 2023, 71% of its revenue from operations originated from the wires and cables segment, while 97% of the revenue from operations was generated from the FMEG segment through the B2C channel.

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R R Kabel Limited IPO (R R Kabel IPO) Date, Price, Details, GMP, Review

R R Kabel IPO opens on September 13, and closes on September 15.

R R Kabel Limited IPO Date

IPO Start Wednesday, September 13, 2023
IPO Close  Friday, September 15, 2023
Basis of Allotment Thursday, September 21, 2023
Initiation of Refunds Friday, September 22, 2023
The credit of Shares to Demat Monday, September 25, 2023
Listing Date Tuesday, September 26, 2023
Cut-off time for UPI mandate confirmation 5 PM on September 15, 2023

R R Kabel Limited IPO Price

Share Price ₹983 to ₹1035 per share
Lot Size 14 Shares
Total Issue Size 18,975,938 shares
(aggregating up to ₹1,964.01 Cr)
Fresh Issue 1,739,130 shares
(aggregating up to ₹180.00 Cr)
Offer for Sale 17,236,808 shares of ₹5
(aggregating up to ₹1,784.01 Cr)
Employee Discount Rs 98 per share
Issue Type Book Built Issue IPO
Listing At BSE, NSE
Shareholding pre-issue 95,696,296
Shareholding post issue 97,435,426
Face Value ₹5 per share

R R Kabel Limited IPO Lot Size

Application Lots Shares Amount
Retail (Min) 1 14 ₹14,490
Retail (Max) 13 182 ₹188370
B- HNI (Min) 70 980 ₹1,014,300

R R Kabel IPO Reservation

QIB Shares Offered Not more than 50.00% of the Net offer
NII (HNI) Shares Offered Not less than 15.00% of the Offer
Retail Shares Offered Not less than 35.00% of the Offer

R R Kabel IPO Promoter Holding

Tribhuvanprasad Rameshwarlal Kabra, Shreegopal Rameshwarlal Kabra, Mahendrakumar Rameshwarlal Kabra, Kirtidevi Shreegopal Kabra, Tribhuvanprasad Kabra HUF, Kabra Shreegopal Rameshwarlal HUF and Mahendra Kumar Kabra HUF are the promoters of the company.
  • Pre Issue Share Holding – 66.42%
  • Post Issue Share Holding – 62.77%

R R Kabel IPO Financial Information (Restated Consolidated)

Period Ended 31 Mar 2020 31 Mar 2021 31 Mar 2022 31 Mar 2023
Assets 1,545.36 1,715.11 2,050.64 2,633.62
Revenue 2,505.54 2,745.94 4,432.22 5,633.64
Profit After Tax 122.40 135.40 213.94 189.87
Net Worth 875.07 1,033.38 1,237.05 1,390.47
Reserves and Surplus 459.23 594.93 781.31 914.15
Total Borrowing 395.29 498.71 521.11 515.84
Amount in ₹ Crore

R R Kabel IPO GMP today

R R Kabel IPO Gray Markets Premium is ₹40.

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R R Kabel IPO Review

R R Kabel, a prominent player in the consumer electrical industry, has recently launched its Initial Public Offering (IPO). This comprehensive analysis aims to provide potential investors with a clear understanding of the company’s strengths, weaknesses, and growth prospects to facilitate informed investment decisions.

Summary: Quality: R R Kabel has consistently demonstrated strong financial performance, with a three-year average Return on Equity (ROE) and Return on Capital Employed (ROCE) standing at 15.6% and 15.5%, respectively. Over the trailing 12 months ending in June 2023, the company’s ROE and ROCE surged to 17.9% and 20.1%, respectively.

Growth: The company has exhibited robust growth, with its revenue (top line) and Profit After Tax (PAT) growing at an impressive annual rate of 43.4% and 18.4%, respectively, during the period from FY21 to FY23.

Valuation: R R Kabel’s stock will be priced at a Price-to-Earnings (P/E) ratio of 47.4 and a Price-to-Book (P/B) ratio of 7.0. This compares favorably to the median and average P/E and P/B ratios of its peers, which stand at 53.3 and 8.5, respectively.

Company Overview: R R Kabel is a leading player in the Indian consumer electrical industry, operating in two key segments: wires and cables (comprising approximately 90% of its revenue) and fast-moving electrical goods, including fans and lighting (constituting 10% of revenue). As of FY23, the company holds a 7% market share by value in the branded wires and cables sector, making it the fifth-largest player in India.

Strengths:

  1. Extensive Distribution Network: R R Kabel boasts an expansive nationwide distribution network, encompassing 3,450 distributors, 3,656 dealers, and 114,851 retailers (as of June 2023). Additionally, the company maintains one of the largest networks of electricians in India, with coverage extending to 298,084 electricians (as of June 2023).
  2. Leading Exporter: The company has secured a substantial 9% market share in the export of wires and cables, further diversifying its revenue streams.

Weaknesses:

  1. Vulnerability to Commodity Price Fluctuations: R R Kabel relies heavily on copper and aluminum, which constitute approximately 82% of its raw material costs (as of FY23). The company is exposed to the risk of price fluctuations and supply uncertainties related to these metals, which could impact its financial stability.
  2. Counterfeit Products: Unauthorized parties marketing products under the R R Kabel brand can negatively affect the company’s competitive position and reputation in the market.

In conclusion, R R Kabel, as a key player in the Indian consumer electrical industry, demonstrates notable strengths, including a robust distribution network and strong financial performance. However, it faces challenges related to commodity price fluctuations and counterfeit products. Investors should carefully consider these factors when evaluating their investment decisions in R R Kabel’s IPO.

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