Indian cables maker RR Kabel's IPO oversubscribed nearly 19 times

Finolex Cables

15/09/2023 14:34

BENGALURU, Sept 15 (Reuters) - Indian wires and cables
maker RR Kabel's initial public offering, valued at about 19.64
billion rupees ($236.25 million), was oversubscribed nearly 19
times on Friday, according to data from the National Stock
Exchange.
    Investors bid for 248.9 million shares by the final day of
bidding, 18.69 times the 13.3 million shares on offer.
    Mumbai-based RR Kabel, which is backed by private equity
firm TPG, priced its IPO between 983 rupees and 1,035 rupees,
according to a newspaper advertisement last week.
    TPG, which owns a 16.67% stake in the company, will sell
shares worth up to 13.35 billion rupees, or nearly 70% of its
total holding in RR Kabel, based on Reuters calculations.
    RR Kabel plans to use the proceeds to repay outstanding
debt, which was 7.77 billion rupees as of Aug. 28, according to
the prospectus.
    The company's consolidated revenue in fiscal 2023 rose about
28% to 55.99 billion rupees from a year earlier, while profit
dropped more than 11%.
    RR Kabel competes with companies such as Polycab India
 POLC.NS  and Finolex Cables  FNXC.NS , whose shares have more
than doubled so far this year on the back of government
infrastructure spending and a real estate upcycle.
    Axis Capital, Citigroup, HSBC Securities and JM Financial
are the lead book-running managers for the RR Kabel IPO.

 ($1 = 83.1320 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by Shounak
Dasgupta)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624))