Consumer electrical company RR Kabel IPO gets subcribed 18.69 times on final day

RR Kabel IPO, RR Kabel IPO subscription status: Consumer electrical company RR Kabel’s initial public offer (IPO), received bids for 24,88,98,328 shares against the 1,33,17,737 shares on offer, an overall subscription of 18.69 times on final day. While the portion reserved for qualified institutional buyers (QIBs) received bids 52.26 times, the non-institutional investor category was booked 13.23 times and the portion meant for retail investors was subscribed 2.13 times on day 3. 

RR Kabel IPO estimated to be worth Rs 1,964 crore, opened for subscription on Wednesday, September 13. The bidding process for the public offer, comprising fresh issuance worth Rs 180 crore and an offer for sale (OFS) worth Rs 1,784 crore by promoters and existing shareholders, will conclude on Friday, September 15. Here are a few important details to know about the RR Kabel IPO:

RR Kabel IPO review: Should you subscribe to it? Here is what Anil Singhvi suggests

Zee Business Managing Editor Anil Singhvi said that investors can apply for the IPO for the long term. He lists out the following negatives and positives: 

Positives:

• Experienced management
• Strong leadership and brand
• Impressive revenue growth
• Strong financials

Negatives:

• Family owned business
• Margins lowest among peers
• Capacity utilisation is already near 75 per  cent
• Valuations are not very attractive

Important dates: RR Kabel IPO allotment date, RR Kabel IPO listing date 

The three-day subscription window, under which potential investors will be able to bid for RR Kabel shares from 10 am to 5 pm, ends on Friday. The basis of the allotment of shares is set to be finalised on September 21, and the credit of shares to the demat accounts of successful bidders on September 25. RR Kabel shares are likely to be listed on bourses BSE and NSE on September 26.

Issue price: A price band of Rs 983-1,035 apiece has been set for the IPO. Potential investors can bid for shares, under the IPO, in multiples of 14 shares, which translates to Rs 13,762-14,490 per lot. The official registrar of the issue is Link Intime India.

What does RR Kabel do?

Incorporated in 1995, RR Kabel is a conglomerate operating in the electrical sector, offering a range of products used for residential, commercial, industrial and infrastructure purposes. RR Kabel broadly operates in two segments: wires and cables, and fast-moving electrical goods.

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