Last updated: Sep 20, 2023 10:21 IST
RR Cable IPO now listed on BSE and NSE. Stay informed about the GMP and subscription status of RR Kabel IPO.
RR Kabel became the first T+2 listing in the Indian primary markets when its shares started trading for subscription three days after the IPO close
RR Cable listing on BSE, NSE: RR Kabel’s shares were trading at Rs 1,180, which is a premium of 14 percent over its IPO price of Rs 1,035. The wire and cable company became the first T+2 listed on the Indian primary markets when its shares started trading for subscription three days after the close of their IPO.
The company has become the first IPO company to complete its listing under the T+2 timeline. Under this standard, an IPO company must complete its listing process within three business days of the closing of the IPO.
The Rs 1,964.01 crore IPO worth RR Kabel IPO opened for public subscription on September 13 and closed on September 15. The IPO included a fresh issue size of Rs 180 crore and an offer for sale (OFS) segment of up to 1.72 crore shares.
The IPO received a decent response from investors with a total subscription of 18.69 times. All categories were fully subscribed, led by institutional investors (52.26x). The retail portion was the least subscribed at 2.13x.
RR Cable is India’s fastest growing consumer electronics company during FY 2021-23 and the fifth largest in wires and cables, with a brand value market share of 7 percent at the end of FY 2023.
Revenue, EBITDA and PAT grew at a CAGR of 31 percent, 16 percent and 16 percent respectively in FY20-23. Analysts estimate this stock to grow at a CAGR of 16 percent, 33 percent and 36 percent respectively in FY23-26.
The company proposes to use the net proceeds to finance full or partial repayment or prepayment of loans taken by the company from banks and financial institutions, estimated at Rs 170 crore.
What should investors do now?
Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd., said: “RR Kabel Limited, a renowned wire and cable manufacturer with a strong brand and quality products, made its stock market debut today. It listed at ₹1,180 per share, 14 percent higher than the IPO price of Rs 1,035, becoming the first IPO to be listed under the T+3 cycle. Despite the high valuation and the fact that most of the issue was an offer to sell, the IPO was well received by investors, with a subscription of 18.69 times. The share had a decent quotation today. Now our suggestion to investors is to exit the position after booking listing profits, but those who want to hold it should maintain a stop loss at 1065.”
