Indian cables maker RR Kabel to raise $236 mln via IPO

JM Financial

08/09/2023 07:21

BENGALURU, Sept 8 (Reuters) - Indian wires and cables
maker RR Kabel has priced its initial public offering (IPO)
between 983 rupees and 1,035 rupees, according to a newspaper
advertisement on Friday, valuing the offering at around 19.64
billion rupees ($236.19 million).
    The Mumbai-based company, backed by private equity firm TPG,
will issue new shares worth 1.8 billion rupees, as per its
prospectus dated Sept. 6, while existing shareholders will sell
shares worth 17.84 billion rupees.
    TPG, which owns a 16.67% stake in the firm, will sell shares
worth up to 13.35 billion rupees ($160.54 million). This is
nearly 70% of its total holding in RR Kabel, according to
Reuters' calculations.
    RR Kabel would use proceeds from the fresh issue to repay
its outstanding loans, which stood at 7.77 billion rupees as of
Aug. 28, as per the prospectus.
    Its annual consolidated revenue in fiscal 2023 climbed about
28% to 55.99 billion rupees from a year ago, while profit
dropped over 11%. 
    RR Kabel competes with companies such as Polycab India
 POLC.NS  and Finolex Cables  FNXC.NS , shares which have soared
more than 100% 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 of the IPO.    

($1 = 83.1550 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Janane
Venkatraman)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))