RR Kabel Set to Go Public with New IPO Filing
TPG- backed RR Kabel, India’s fifth largest ingrained cables and lines manufacturer, has filed its draft red herring prospectus (DRHP) papers with capital requests controller SEBI to raise finances through an original public immolation (IPO).
According to the draft papers, the fresh issue summations up to Rs 225 crore and an offer for trade of over to equity shares of the face value of Rs 5 each. RR Kabel proposes to use the net proceeds towards the backing of prepayment or repayment, in full or in part, of borrowings profited by the Company from banks and fiscal institutions estimated to be Rs 170 crores.
TPG Asia VII SF Pte Ltd, a US- grounded private equity establishment, which holds a 20.99% stake in RR Kabel, will be dealing some of its stake in the company through the IPO. RR Kabel is a part of RR Global Group with earnings of Rs 4,386 crore in FY22. The company’s profit for the nine months ending December 2022 stood at Rs 4,083 crore. Net profit came in at Rs 214 crore and Rs 125 crore for FY22 and nine months ending December 2022, independently.
The establishment is a leading company in the Indian consumer electrical assiduity comprising cables and lines and fast- moving electrical goods (FMEG), with an operating history of over 20 times in India. RR Kabel is also the swift- growing consumer electrical company among our peers in India, growing at a CAGR of 33% between FY20 and FY22, as per the Technopak report. The establishment has a request share of about 8 in request value in FY22. The same stood at 5% in FY15.
RR Kabel derives the loftiest profit donation from the business- to- consumer deals channel in cables and lines, with roughly 75% of profit coming from the B2C deals channel in FY22.
RR Kabel is also the largest exporter of cables and lines from India, in terms of value, which is about 11 request shares of the exports. The company also has one of the largest networks of electricians, covering 147,810 electricians across India, as of FY22.
RR Kabel ’s profit donation from the FMEG member, which stood at 10.92% for the nine months that ended December 31, 2022, is the loftiest among peers. Axis Capital, HSBC Securities and Capital Markets (India), Citigroup Global Markets India and JM Financial are the book- running lead directors to the issue.
About RR Kabel Limited
RR Kabel Limited is one of the largest conglomerates in the electrical sector in India. Spread across multiple business verticals including Wires & Cables, Switches, Fans, Lighting, Switchgears & Appliances, we continue to endeavour to create top quality products using futuristic advances in design and engineering. We offer an extensive range of products used for residential, commercial, industrial, and infrastructure purposes.
RR Kabel is a ISO 9001, ISO 14001, and ISO 45001 certified company. We are available in 58 countries globally with our Wires & Cables products certified to BASEC(UK), UL(USA), CSA(Canada), VDE(Germany), TUV Rheinland (Germany), & more and compliant to REACH (Registration Evaluation Authorization of Chemical Substances) and RoHS (Restriction of Hazardous Substances) ensuring we adhere to global standards of quality and safety.
We believe that the future of our industry lies in innovation and effective R&D, that in turn helps one to push boundaries and eliminate borders. We at RR Kabel believe in this and hence are constantly emerging with new products with a focus on quality, safety and affordability.