RR Kabel IPO: IPO of TPG backed RR Kabel will come soon, approval from SEBI

RR Kabel IPO: IPO of TPG backed RR Kabel will come soon, approval from SEBI

RR Kabel IPO Update: Wire and cable manufacturing company RR Kabel has got approval to bring IPO (Intial Public Offering). SEBI, the regulator of the stock market, has given permission to the company to launch the IPO. RR Cable had filed a draft paper (DRHP) with SEBI in May 2023 to bring an IPO.  

In RR Cable IPO, new shares worth Rs 225 crore will be issued by the company.  While 1.72 crore shares will be sold by the company’s promoter and its investor TPG under Offer For Sale. America’s private equity firm TPG Asia will sell about 1.29 crore shares in the offer for sale. According to the draft paper filed by the company with SEBI for the IPO, TPG Asia holds 20 per cent stake in the company and has a total of 2.33 crore shares. 

The company can raise Rs 2500 crore from the market through IPO. On bringing IPO, the company can get a valuation of Rs 14000 to 15000 crores. Out of the amount raised in the IPO, the company will repay the loan of Rs 170 crore. The remaining amount will be used for general corporate purposes. 

RR Kabel is a subsidiary of Electric sector giant RR Global which has its presence in around 90 countries. In the three quarter period of the financial year 2022-23, the company’s revenue from operation was Rs 4083 crore with a jump of 36.6 per cent. While there was a decrease of 20.1 percent in the profit and it came down to Rs 124.6 crore. The company’s revenue in 2021-22 was Rs 4800 crore. The company is targeting a turnover of Rs 11,000 crore in the next three years by 2025-26. 

RR Kabel manufactures premium wires and cables for residential, commercial, industrial and infrastructure needs.  With this, the company is going to step into new areas. In the same year, RR Kabel bought the home electrical business of Luminous from Schneider Electric. This acquisition will help the company to strengthen the consumer electricals business. The company has hired Axis Capital, JM Financial, Citigroup Global and HSBC as investment bankers for the IPO. 


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