- Date : 13/09/2023
- Read: 4 mins
Are you eyeing the R R Kabel Limited IPO? We've got you covered with the essential details and insights to help you make informed investment decisions.
The R R Kabel Limited IPO is creating a buzz in the market, and investors are eager to jump on board. But before you do, here are 10 crucial things you need to know about this offering.
Highlights:
-
The IPO size is Rs 1,964 Crores, priced at Rs 983-Rs 1,035 per share.
-
While revenue showed significant growth, net profits dropped by 11.24%.
-
The GMP currently stands at Rs 40 per share, indicating a 3.86% premium over the issue price.
1. About the Company.
R R Kabel Limited, established in 1995, is a leading player in India's wire, cable, and FMEG (fast-moving electrical goods) sectors. It provides various consumer electrical products used in residential, commercial, industrial, and infrastructure applications.
2. Price Band and IPO Size
The price band for each share is set between Rs 983 and Rs 1,035.
The IPO size is Rs 1,964 crores, comprising Rs 180 Crore fresh issue and a Rs 1,784 crores Offer-for-Sale (OFS).
3. IPO Key Information
4. Reservations
5. The objective of the Issue
The company plans to use the proceeds to repay or prepay borrowings and for general corporate purposes.
Also Read: Yatra Online: Do You Know Enough About This Upcoming IPO?
6. Financial Snapshot
In FY23, the company recorded a revenue of Rs 5633.64 crores and a profit of Rs 189.87 crores. While revenue showed significant growth, net profits saw a decrease of 11.24% compared to FY22. Here’s a snapshot:
Other performance indicators:
-
Return on Equity (ROE): 14.22%
-
Earnings Per Share (EPS): Rs 17.09
-
Price-to-Earnings (P/E) Ratio: 39.26
7. Parties to the Issue
Axis Capital Limited and Citigroup Global Markets India Private Limited are the book-running lead managers, while Link Intime India Private Limited is the registrar to the issue.
8. Strengths of R R Kabel Limited
-
Diverse product offerings, including 5G cables and smart fans.
-
Impressive growth rate of 43.4% CAGR from FY21 to FY23.
-
Pan-India and global distribution networks.
-
Globally accredited with five manufacturing sites.
9. Risks of R R Kabel Limited
-
Exposure to foreign currency fluctuations.
-
Dependency on bank channel financing.
-
Vulnerability to production disruptions due to high power needs.
-
Counterfeit goods and trademark breaches.
-
Challenges in securing favourable deals with global distributors.
10. Grey Market Premium (GMP)
The grey market premium stands at Rs 40 per share, indicating a 3.86% premium over the issue price of Rs 1,035 apiece.
Find the latest articles on stocks here.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
