RR Kabel Limited issued an Initial Public Offering (IPO) on September 13, 2023, which concluded on September 15. An aggregate proceeds of INR 1,800 million was generated from shares with price band offer ranging from INR 983 to INR 1,035. The proceeds shall be allotted for borrowings of INR 1,360 million, and balance towards general business.
Sep 13, 2023
RR Kabel Limited opened its initial public offering (IPO) of equity shares on September 13, 2023, for subscription was closed on Friday, September 15, 2023. The initial public offering comprised a fresh issue of equity shares aggregating up to INR 1,800 million and an offer for sale of up to 17,236,808 equity shares by selling shareholders. The company proposed to utilize the proceeds towards repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions, estimated at INR 1,360 million; and the balance amount towards general corporate purposes.
The Anchor Investor Bidding took place on Tuesday, September 12, 2023. The Offer also included a reservation of equity shares aggregating up to INR 108 million, available for allocation on a proportionate basis to certain eligible employees of the Company (Employee Reservation Portion) in the manner described in the red herring prospectus (RHP) dated September 6, 2023, filed with the Registrar of Companies (ROC), Maharashtra at Mumbai. A discount of INR 98 per equity share was offered to eligible employees bidding in the Employee Reservation Portion. The offer less the Employee Reservation Portion is the ‘net offer’.
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The price band of the offer has been fixed at INR 983 to INR 1,035 per equity share. Bids can be made for a minimum of 14 equity shares, and in multiples of 14 equity shares thereafter.
The Offer for Sale comprises up to 754,417 equity shares by Mr. Mahendrakumar Rameshwarlal Kabra; up to 754,417 equity shares by Mr. Hemant Mahendrakumar Kabra; 754,417 equity shares by Mr. Sumeet Mahendrakumar Kabra; up to 707, 200 equity shares by Kabel Buildcon Solutions Private Limited, up to 1,364,480 equity shares by Ram Ratna Wires Limited, and up to 12,901,877 equity shares by TPG Asia VII SF Pte.Limited (‘Investor Selling Shareholder’).
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The equity shares are being offered through the RHP and are proposed to be listed on recognized stock exchanges, that is BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”), wherein BSE is the designated stock exchange for the purposes of the offer.
Axis Capital Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, and JM Financial Limited were the book-running lead managers to the offer.
