The Initial Public Offering (IPO) of wires and cables manufacturer R R Kabel saw robust demand as it was subscribed 1.39 times on the second day of bidding on Thursday. The Rs 1,964 crore ($263 million) IPO received bids for 185,713,64 shares against the 133,177,37 shares on offer, according to NSE data.
On Wednesday, the first day of bidding, the IPO was subscribed 25%. Prior to that, on Tuesday, the TPG-backed firm had mobilised Rs 585.62 crore from anchor investors. The IPO consists of a fresh issue of up to Rs 180 crore and an offer for sale of up to 17,236,808 equity shares. The price range for the IPO is set between Rs 983-1,035 per share.
The category for non-institutional investors received 2.1 times subscription, while the quota for Qualified Institutional Buyers (QIBs) got subscribed 1.65 times. The portion allocated for Retail Individual Investors (RIIs) was subscribed at a rate of 95%.
R R Kabel operates five manufacturing units -- one cable and wire unit each at Waghodia in Gujarat and at Silvassa in Dadra and Nagar Haveli, a commercial lightings plant in Bengaluru, a fast moving electrical goods unit at Roorkee in Uttarakhand and another at Gagret in Himachal Pradesh. A total of 88% of its revenue comes from cables and wires.
The company plans to utilise Rs 136 crore of the net proceeds from the fresh issue to pare down debt. In the fiscal year 2021-22, R R Kabel reported a net profit of Rs 214 crore and revenue of Rs 4,386 crore. Axis Capital (NYSE:AXS), Citigroup (NYSE:C) Global Markets India, HSBC Securities and Capital Markets (India), and JM Financial are the managers to the offer.
In contrast, the IPO of fintech player Zaggle Prepaid Ocean Services Ltd received a lukewarm response with 19% subscription on Thursday, the first day of the bidding. The share sale received bids for 36,84,060 of the 1,93,26,761 shares on offer. While the portion for Retail Individual Investors (RIIs) was subscribed 87%, the quota for non-institutional investors received only 11% subscription. The company plans to utilise part of the net proceeds on expenditure towards customer acquisition and retention and development of technology and products.
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