R R Kabel Limited IPO

R R Kabel Limited IPO

RR Kabel’s  IPO aims to raise INR 1,964.01 crores. The IPO has two segments – a fresh issue worth INR 180 crores and an offer for sale worth INR 1,784.01 crores.  The IPO’s main objective is to prepay or repay a portion of the company’s outstanding borrowings. 

R R Kabel Limited IPO – Important Details

R R Kabel IPO Date 13th September 2023 to 15th September 2023
R R Kabel IPO Listing Date 20th September 2023
R R Kabel IPO Price INR 983-1035 per share
R R Kabel IPO Lot Size 14 shares
R R Kabel IPO Total Issue Size Approx 1964.01 crores
R R Kabel IPO Basis of Allotment 21th September 2023
R R Kabel IPO Initiation of Refunds 22th September 2023
R R Kabel IPO Credit of Shares to Demat 25th September 2023
R R Kabel IPO Issue Type Book Built Issue IPO
R R Kabel IPO Listing At BSE, NSE

R R Kabel Ltd IPO – Company Profile

RR Kabel is one of the leading companies in the Indian consumer electrical industry (comprising wires and cables and fast-moving electrical goods (“FMEG”)), with an operating history of over 20 years in India.

The company sells products across two broad segments – (i) wires and cables, including house wires, industrial wires, power cables, and special cables, and (ii) FMEG, including fans, lighting, switches, and appliances.

The company undertakes the manufacturing, marketing, and selling (i)  wires and cable products under the ‘RR Kabel brand and (ii) consumer electrical products, including fans and lights under the ‘RR’ brand, which is licensed by the company. The company also manufacture, market, and sell fans and lights under the ‘Luminous Fans and Lights’ brand, which is licensed by the company. 

R R Kabel IPO – Fundamental Analysis

Revenue Growth: 

R R Kabel has demonstrated strong revenue growth over the past three years, increasing from ₹27,239.41 million in 2021 to ₹55,992.00 million in 2023, indicating robust top-line performance.

Profitability: 

The company’s profitability, as measured by profit after tax, has shown improvement. It increased from ₹1,425.86 million in 2021 to ₹2,021.53 million in 2023.

Return on Net Worth (RoNW): 

RoNW, which measures the company’s efficiency in utilizing its equity, experienced fluctuations. It stood at 13.10% in 2021, increased to 17.29% in 2022, but decreased to 13.66% in 2023.

Earnings Per Share (EPS): 

Diluted EPS has shown a positive trend, increasing from ₹12.18 in 2021 to ₹17.07 in 2023, reflecting improved earnings per share.

Net Asset Value (NAV) per Equity Share: 

NAV per equity share has been consistently rising from ₹93.04 in 2021 to ₹125.19 in 2023, indicating an increase in intrinsic value per share.

Asset and Liability Management: 

Total assets have grown significantly from ₹17,151.14 million in 2021 to ₹26,336.21 million in 2023, indicating a substantial expansion of the asset base. Liabilities have also increased, reflecting a balanced financial structure.

Summary: 

R R Kabel has exhibited strong revenue growth and improved profitability. However, the fluctuation in RoNW and a decrease in 2023 should be considered. Investors should assess the company’s growth prospects and risk factors before investing in the IPO.

R R Kabel IPO Financial Information

Particular As at 31 March 2021 As at 31 March 2022 As at 31 March 2023
Revenue (₹ in millions) 27,239.41 43,859.36 55,992.00
Equity (₹ in millions) 10,466.31 12,503.03 14,196.95
Expenses (₹ in millions) 25,656.00 41,520.56 53,785.93
Profit and Loss After Tax (₹ in millions) 1,425.86 2,306.87 2,021.53
RoNW (%) 13.10% 17.29% 13.66%
Diluted EPS only (₹) 12.18 19.22 17.07
NAV per Equity Share (₹) 93.04 111.38 125.19
Total Assets (in millions) 17,151.14 20,506.44 26,336.21
Total Liabilities (in millions)

 

6,684.83 8,003.36 12,139.26

R R Kabel Limited IPO Peer Comparison

R R Kabel’s total income of ₹56,336.40 million is competitive in the industry. It exhibits a reasonable RoNW of 13.66%. Polycab India leads in income and RoNW, while Havells India and KEI Industries also demonstrate strong financial performance.

Company Total Income (₹ in million) Face Value per Equity Share (₹) P/E EPS (Basic) (₹) EPS (Diluted) (₹) RoNW (%) NAV per Equity Share (Basic) (₹)
R R Kabel Limited 56,336.40 5 NA 17.09 17.07 13.66% 125.19
Havells India Limited 1,70,884.40 1 79.49 17.11 17.11 16.18% 105.75
Polycab India Limited 1,42,411.04 10 62.57 84.87 84.61 19.23% 445.25
KEI Industries Limited 69,399.53 2 49.72 52.94 52.86 18.44% 287.07
Finolex Cables Limited 45,988.50 2 34.52 32.97 32.97 11.54% 285.76
V-Guard Industries Limited 41,424.83 1 72.37 4.38 4.35 11.76% 37.20
Crompton Greaves Consumer Electricals Limited 69,363.90 2 41.81 7.29 7.27 15.33% 48.85
Bajaj Electricals Limited 55,051.14 2 62.50 18.80 18.77 11.34% 165.74

R R Kabel Ltd IPO Objective

The R R Kabel Ltd IPO aims to raise capital for the repayment or pre-payment of secured borrowings, particularly INR 136 crores out of the outstanding INR 772.96 crores, and for general corporate purposes, including technological advancements and business expansion.

  1. Repayment or pre-payment of certain secured borrowing: The company had entered into various financing arrangements, which include working capital term loans. Out of the said arrangement, INR 772.96 crores is outstanding as of 28th August 2023, and the company intends to use the raised funds to the extent of INR 136 crores to repay the borrowings.
  2. General corporate purpose: The company plans to deploy the balance funds towards the general corporate purpose, which is not limited to meeting expenses incurred in the ordinary course of business such as strategic initiatives, including the advancement of information technology, meeting future branches and business expansion, etc.

R R Kabel Ltd IPO Risks And Challenges

Risks for RR Kabel Ltd IPO include supply chain disruptions, raw material price fluctuations, and potential inadequacy of insurance coverage, all of which could adversely affect the company’s financial health and operations.

  1. Any shortages, delays, or disruption in the supply of the raw materials used in the manufacturing process may have a material adverse effect on the business, financial condition, results of operations, and cash flows.
  2. Increases or fluctuations in raw material prices may have a material adverse effect on the business, financial condition, results of operations, and cash flows.
  3. The insurance coverage of the company may not be adequate to protect against all potential losses, which may have a material adverse effect on the business, financial condition, cash flows, and results of operations.

R R Kabel Limited IPO – Type of Offer

RR Kabel’s  IPO aims to raise INR 1,964.01 crores. The IPO has two segments – a fresh issue worth INR 180 crores and an offer for sale worth INR 1,784.01 crores.  The IPO’s main objective is to prepay or repay a portion of the company’s outstanding borrowings. 

R R Kabel Limited IPO Offer Size

RR Kabel’s  IPO aims to raise INR 1,964.01 crores. The IPO has two segments- a fresh issue worth INR 180 crores and an offer for sale worth INR 1,784.01 crores.

R R Kabel Limited IPO Allotment Structure

The RR Kabel IPO allotment structure allocates 50% of shares to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and the remaining 35% to Retail Individual Investors (RIIs).

  • Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
  • Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
  •  Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.

How to apply for RR Kabel Limited IPO?

To apply for the RR Kabel IPO through Alice Blue, you would typically follow these steps:

  1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
  2. Check for IPO Details: Once your account is active, you can check for the RR Kabel IPO details in the IPO section of the Alice Blue platform.
  3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  4. Submit the Application: Confirm all your details and submit your application.

You can apply for RR KabelIPO at Alice Blue in just a few clicks!

 Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.

 Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check RR Kabel IPO Allotment Status on Alice Blue?

 Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

  1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
  2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
  3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
  4. Select the RR Kabel IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the RR Kabel IPO.
  5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

 Apart from Alice Blue, there are other ways to check the allotment status of the RR Kabel IPO:

  •  Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the RR Kabel IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
  •   NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.

 Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

RR Kabel Limited IPO Offer Registrar

The registrar for the RR Kabel IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Link Intime India Private Limited

C 101, 1st Floor, 247 Park

L.B.S Marg

Vikhroli (West), Mumbai 400 083

Maharashtra, India

Tel: +91-022-810 811 4949

E-mail: [email protected]

Website: www.linkintime.co.in

R R Kabel Limited IPO FAQs

1. What is the allotment date of the RR Kabel Limited IPO?

The allotment date of the RR Kabel Limited IPO is 21 September 2023.

2. What is the price band of RR Kabel Limited IPO?

The price band of RR Kabel Limited IPO is INR 983 to 1035 per share.

3. What is the size of the RR Kabel Limited IPO?

RR Kabel’s  IPO aims to raise INR 1,964.01 crores. The IPO has two segments- a fresh issue worth INR 180 crores and an offer for sale worth INR 1,784.01 crores.  The IPO’s main objective is to prepay or repay a portion of the company’s outstanding borrowings.

4. What is the listing date of the RR Kabel Limited IPO?

The listing date of the RR Kabel Limited IPO is 20 September 2023

 

Enjoy Low Brokerage Trading Account In India

Save More Brokerage!!

We have Zero Brokerage on Equity, Mutual Funds & IPO