RR Kabel Listing Highlights: Shares list at premium of 14%; check target price, other details

RR Kabel IPO Listing: Shares over Rs 1,200

Meanwhile, RR Kabel's share price went above Rs 1,200 before settling at Rs 1,196.65 on the National Stock Exchange (NSE) on the first day of its listing. 

RR Kabel IPO Listing LIVE: Company’s focus is to minimise losses

RR Kabel has amalgamated Ram Ratna Electricals, acquired LED lights business of Arraystorm and home electrical business of Luminous Power to build its portfolio in FMEG. Company’s focus is to minimise losses in FMEG business in coming years.

RR Kabel IPO Listing LIVE: 9% market share

RR Kabel is a prominent player in India's wire and cable export with around 9 per cent market share. Its robust network of 72 distributors is spread across key regions like North America, Asia Pacific, Europe, and the Middle East.

RR Kabel IPO Listing LIVE:  Extensive distribution network

RR Kabel products are currently being sold through 3,405 distributors & 3,656 dealers covering 114,851 retailers.

RR Kabel IPO Listing LIVE: RR Kabel share price target

Brokerage firm Prabhudas Lilladher has given a 'buy' rating for RR Kabel with a target price of Rs 1,407 valuing at 35x FY25 earnings.

RR Kabel IPO Listing LIVE: Decent listing for RR Kabel 

The stock of RR Kabel began trading at Rs 1,181 on the National Stock Exchange (NSE). This is a 14.11 per cent premium to its IPO price of Rs 1,035.

RR Kabel IPO Listing LIVE: Shares list at premium of 14% on BSE

Shares of RR Kabel are listed at a premium of 14 per cent on the Bombay Stock Exchange (BSE). The shares were listed at Rs 1,179 against the issue price of Rs 1,035.

RR Kabel IPO Listing LIVE: Fastest growing player in the segment

According domestic brokerage firm Prabhudas Lilladher Research, RR Kabel is a fastest-growing player in the wire and cable segment with a reported revenue CAGR of nearly 40% in W&C vs peers of nearly 30% over FY21-23. 

RR Kabel IPO Listing LIVE: RR Kabel's net profit in FY22

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.

RR Kabel IPO Listing LIVE: Company to utilise proceeds towards funding of repayment

The company proposes to utilise the net proceeds towards the funding of repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions estimated to be Rs 170 crore.

RR Kabel IPO Listing LIVE: IPO subscribed 18.69 times

The IPO of RR Kabel received a decent response from investors. The IPO got an overall subscription at 18.69 times. All the categories were fully subscribed, led by institutional investors (52.26x). The retail part was the least subscribed at 2.13x.

RR Kabel IPO Listing LIVE: Positives and Negatives of the company

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

RR Kabel IPO Listing LIVE: Cable and wires major source of revenue

Also, it has a fast-moving electrical goods unit at Roorkee in Uttarakhand and another at Gagret in Himachal Pradesh. A total of 88 per cent of its revenue comes from cables and wires.

RR Kabel IPO Listing LIVE: RR Kabel runs five manufacturing units

The TPG-backed firm runs five manufacturing units - one cable and wire unit each at Waghodia in Gujarat and at Silvassa in Dadra and Nagar Haveli, besides a commercial lighting plant in Bengaluru.

RR Kabel IPO Listing LIVE: QIBs got subscribed 52.26 times

The category for Qualified Institutional Buyers (QIBs) got subscribed 52.26 times. The quota for non-institutional investors attracted 13.23 times subscriptions while the portion for retail individual investors was subscribed 2.13 times.