R R Kabel Limited IPO (R R Kabel IPO) Detail
Founded in 1995, R R Kabel IPO is a prominent player in the consumer electrical products industry, catering to residential, commercial, industrial, and infrastructure needs.
R R Kabel operates within two distinct segments:
- Wires and Cables: This encompasses an array of products, including house wires, industrial wires, power cables, and specialty cables.
- FMEG (Fans, Lighting, Switches, and Appliances): This segment extends to fans, lighting solutions, switches, and various appliances.
The company is deeply involved in the production, marketing, and sale of wire and cable products under the ‘RR Kabel’ brand. It also manufactures fans and lights under the ‘Luminous Fans and Lights’ brand.
In 2020, R R Kabel made a strategic move by acquiring Arraystorm Lighting Private Limited, a move that expanded its product portfolio to encompass light emitting diode (LED) lights and related hardware (LED Lights Business). This acquisition enabled the company to cater to office, industrial, and warehouse lighting needs. In a subsequent development in 2022, the company further bolstered its position by acquiring the home electrical business (HEB) of Luminous Power Technologies Private Limited.
This acquisition came with a limited and exclusive license to use the Luminous Fans and Lights brand for fan and light products for an initial four-year period, with an option to renew the license for an additional three months. The package also included the rights to use 61 registered trademarks and a portfolio of lights and premium fans. These strategic moves strengthened R R Kabel’s position in the FMEG segment.
R R Kabel operates two manufacturing units located in Waghodia, Gujarat, and Silvassa, Dadra and Nagar Haveli, and Daman and Diu, primarily focused on wire and cable manufacturing, as well as switches. Additionally, the company manages three integrated manufacturing facilities situated in Roorkee, Uttarakhand; Bengaluru, Karnataka; and Gagret, Himachal Pradesh, dedicated to the production of FMEG products.
R R Kabel’s customer base extends across both domestic and international markets. In the three months leading up to June 30, 2023, the wires and cables segment contributed to 71% of its revenue from operations, while the FMEG segment, primarily through the B2C channel, accounted for a substantial 97% of the company’s operational revenue.
R R Kabel IPO Details
R R Kabel IPO is a Book Built Issue. The IPO total issue size is Rs 1,964.01 Cr. The R R Kabel IPO price is ₹983 to ₹1035 per share. The IPO will list on BSE, NSE.
| IPO Date | September 13, 2023 to September 15, 2023 |
| Listing Date | [.] |
| Face Value | ₹5 per share |
| Price | ₹983 to ₹1035 per share |
| Lot Size | 14 Shares |
| Total Issue Size | 18,975,939 shares (aggregating up to ₹1,964.01 Cr) |
| Fresh Issue | 1,739,131 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 |
| Share holding pre issue | 95,696,296 |
| Share holding post issue | 97,435,427 |
R R Kabel IPO Timetable (Tentative)
R R Kabel IPO opens on September 13, 2023, and closes on September 15, 2023.
| IPO Open Date | Wednesday, September 13, 2023 |
| IPO Close Date | Friday, September 15, 2023 |
| Basis of Allotment | Thursday, September 21, 2023 |
| Initiation of Refunds | Friday, September 22, 2023 |
| 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 IPO Lot Size
The minimum lot size of this R R Kabel IPO is 14 shares required is ₹14,490.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 14 | ₹14,490 |
| Retail (Max) | 13 | 182 | ₹188,370 |
| S-HNI (Min) | 14 | 196 | ₹202,860 |
| S-HNI (Max) | 69 | 966 | ₹999,810 |
| 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
Tribhuvan prasad Rameshwar Lal Kabra, Shree Gopal Rameshwar Lal Kabra, Mahendra kumar Rameshwar lal Kabra, Kirti devi Shree gopal Kabra, Tribhuvan prasad Kabra HUF, Kabra Shree gopal Rameshwar lal HUF and Mahendra Kumar Kabra HUF are the promoters of the company.
Pre Issue Share Holding66.42%Post Issue Share Holding62.77%
Company Financials
| 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 |
Key Performance Indicator
R R Kabel IPO Market Cap is Rs 11675.63 Cr and P/E (x) is 39.26.
| KPI | Values |
|---|---|
| P/E (x) | 39.26 |
| Market Cap (₹ Cr.) | 11675.63 |
| ROE | 14.22% |
| ROCE | 15.57% |
| Debt/Equity | 0.36 |
| EPS (Rs) | 17.09 |
| RoNW | 13.66% |
Objects of the Issue
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
- Repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions.
- General corporate purposes.
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