In this article you get to know insight about R R Kabel Limited IPO Details. R R Kabel Limited was incorporated in1995 and emerged as a prominent name in the consumer electrical products sector. The company offers a wide range of electrical solutions designed for residential, commercial, industrial, and infrastructure applications.
Business Segments: R R Kabel Limited operates under two distinct business segments:
Wires and Cables: This segment encompasses a diverse product range, including house wires, industrial wires, power cables, and specialty cables.
FMEG (Fans, Lighting, Switches, and Appliances): Under this segment, the company offers an array of products such as fans, lighting solutions, switches, and various home appliances.
R R Kabel Limited markets its wire and cable products under the well-known ‘RR Kabel’ brand. Additionally, it promotes fans and lights under the ‘Luminous Fans and Lights’ brand.
In 2020, R R Kabel Limited strategically acquired Arraystorm Lighting Private Limited, a move aimed at expanding its product portfolio to include cutting-edge LED lights and related hardware. This acquisition specifically targeted office, industrial, and warehouse spaces. In 2022, the company made another significant acquisition by taking over the home electrical business (HEB) of Luminous Power Technologies Private Limited. This acquisition granted R R Kabel Limited a limited and exclusive license to utilize the Luminous Fans and Lights brand for fan and lighting products. The license is valid for a maximum of four years with an option to renew it for an additional three months. This acquisition also included the rights to use 61 registered trademarks and a premium portfolio of lights and fans, strengthening the company’s FMEG product line.
R R Kabel Limited operates two manufacturing units located in Waghodia, Gujarat, and Silvassa, Dadra and Nagar Haveli, and Daman and Diu. These facilities primarily focus on the production of wires, cables, and switches. Additionally, the company owns and manages three integrated manufacturing facilities situated in Roorkee, Uttarakhand; Bengaluru, Karnataka; and Gagret, Himachal Pradesh. These facilities play a crucial role in the manufacturing of FMEG products.
R R Kabel Limited caters to a diverse clientele, both in domestic and international markets. In the last three months ending on June 30, 2023, the company generated 71% of its revenue from operations through the wires and cables segment. Moreover, a substantial portion of the revenue, accounting for 97% of operations, was derived from the FMEG segment, primarily through the B2C channel. R R Kabel Limited stands as a dynamic player in the consumer electrical products industry, continually expanding its product offerings and serving a global customer base.
Objects of the Issue
- Repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions
- General corporate purposes.
R R Kabel Limited IPO Details
|IPO Date||September 13, 2023 to September 15, 2023|
|Face Value||₹5 per 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)|
|Issue Type||Book Built Issue IPO|
|Share holding pre issue||95,696,296|
|Share holding post issue||97,435,426|
R R Kabel Limited IPO Reservation
QIB (Qualified Institutional Buyers) Shares Offered: This category is typically offered not more than 50.00% of the total shares in the IPO. Qualified Institutional Buyers include institutional investors such as mutual funds, insurance companies, and foreign institutional investors.
NII (Non-Institutional Investors or HNI – High Net Worth Individuals) Shares Offered: This category is usually offered not less than 15.00% of the total shares in the IPO. High Net Worth Individuals, as well as other non-institutional investors, fall into this category.
Retail Shares Offered: This category is typically offered not less than 35.00% of the total shares in the IPO. Retail investors, which include individual investors, small investors, and the general public, are eligible to apply for shares in this category.
These percentages represent the allocation criteria set by the company going public and its underwriters to distribute shares among different investor groups. It’s a common practice to allocate a significant portion of shares to retail investors to encourage wider participation in the IPO. QIBs and NIIs often receive a smaller portion of the shares because they are considered more sophisticated and larger investors. These allocations are subject to change and may vary depending on the specific IPO and regulatory requirements in different countries.
R R Kabel Limited IPO Lot Size
R R Kabel Limited IPO Promoter Holding
Promoters: The individuals and Hindu Undivided Family (HUF) entities listed, such as 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 Shareholding: Before the IPO, the promoters collectively hold 66.42% of the company’s shares. This indicates that they own a significant portion of the company’s equity.
Post-Issue Shareholding: After the issuance of shares in the IPO, the promoters’ collective shareholding is reduced to 62.77%. This means that the promoters have diluted their ownership stake in the company as a result of the IPO, likely by selling some of their shares to public investors.
The reduction in the promoters’ shareholding post-IPO is a common occurrence as the company goes public and offers shares to the public. This allows the company to raise capital and potentially expand its ownership base. The exact changes in shareholding can vary depending on the size and structure of the IPO.
R R Kabel Limited IPO Tentative Dates
|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|
What is R R Kabel IPO?
R R Kabel IPO is a main-board IPO of 18,975,938 equity shares of the face value of ₹5 aggregating up to ₹1,964.01 Crores. The issue is priced at ₹983 to ₹1035 per share. The minimum order quantity is 14 Shares. The IPO opens on September 13, 2023, and closes on September 15, 2023.
How to apply in R R Kabel IPO through Zerodha?
Steps to apply in R R Kabel IPO through Zerodha
Visit the Zerodha website and login to Console.
Go to Portfolio and click the IPOs link.
Go to the ‘R R Kabel IPO’ row and click the ‘Bid’ button.
Enter your UPI ID, Quantity, and Price.
‘Submit’ IPO application form.
Visit the UPI App (net banking or BHIM) to approve the mandate.
When R R Kabel IPO will open?
The R R Kabel IPO opens on September 13, 2023 and closes on September 15, 2023.
What is the lot size of R R Kabel IPO?
R R Kabel IPO lot size is 14 Shares, and the minimum amount required is ₹14,490.
When is R R Kabel IPO allotment?
The finalization of Basis of Allotment for R R Kabel IPO will be done on Thursday, September 21, 2023, and the allotted shares will be credited to your demat account by Monday, September 25, 2023.
When is R R Kabel IPO listing date?
The R R Kabel IPO listing date is not yet announced. The tentative date of R R Kabel IPO listing is Tuesday, September 26, 2023.