TPG-backed wires and cables manufacturer RR Kabel Ltd on Tuesday said it has mobilised Rs 585.62 crore from anchor investors ahead of its initial share sale.
The company has allocated 56,58,201 equity shares to 54 entities at an average price of Rs 1,035 apiece, according to a circular uploaded on the BSE website.
HDFC Mutual Fund, Axis Mutual Fund, Nippon India Mutual Fund, Aditya Birla Sun Life Mutual Fund, SBI Life Insurance, HDFC Life Insurance Company, Abu Dhabi Investment Authority, Morgan Stanley Asia (Singapore) Pte, Elara India Opportunities Fund, and Government Pension Fund Global are among the anchor investors.
RR Kabel’s Rs 1,964 crore Initial Public Offering (IPO) which comprises a fresh issue of shares worth up to Rs 180 crore and an offer for sale (OFS) of over 1.72 crore shares by promoters and other external shareholders opens for public subscription on Wednesday.
Through the OFS, the promoters/promoter entities will sell 3-4 per cent of their holdings but will still continue to hold 64 per cent in the company. Those selling shares in the OFS include Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra, Kabel Buildcon Solutions and Ram Ratna Wires.
Among shareholders, TPG will pare its shareholding to around 5 per cent through the share sale. In the pre-IPO process last month, TPG had sold 5 per cent of its 21 per cent holding, which it had picked up in September 2018 for Rs 3,000 crore.
RR Kabel has fixed the price band at Rs 983-1,035 for the initial public offering. At the upper end of the price band, the issue will fetch up to Rs 1,964 crore.
The company runs five manufacturing units – one each cable and wire units in Wagodia in Gujarat and in the Union Territory of Silvasa, and a commercial lightings plant in Bengaluru and one each fast moving electrical goods (FMEG) units in Roorki in Uttarakhand and Gagret in Himachal. As much as 88 per cent of its revenue comes from cables and wires.
The company proposes to utilise Rs 136 crore of the net proceeds from the fresh issue to pare down debt.
RR Kabel, a part of the RR Global Group, had a net profit of Rs 214 crore on a revenue of Rs 4,386 crore in FY22.
The company has also reserved Rs 10.8 crore shares for eligible employees who will receive shares at a discount of Rs 98 per share on the final offer price.
Axis Capital, Citigroup India, HSBC Securities India and JM Financial are the book-running lead managers to the issue.
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