Gujarat-based RR Kabel, a leading player in the fast-moving electrical goods (FMEG) and wires and cables sectors, has raised Rs 585.62 crore ($7.9 million) from anchor investors on Tuesday, a day ahead of its public issue opening. The company, which is backed by global private equity firm TPG, has finalized the allocation of 56,58,201 equity shares to investors at a price of Rs 1,035 per share.
The initial public offering (IPO), set to open on Wednesday, September 13 and close on Friday, September 15, aims to raise Rs 1,964 crore ($265 million). The price band for the offer has been fixed at Rs 983-1,035 per share. The IPO comprises a fresh issue of equity shares worth Rs 180 crore ($24.3 million) and an offer-for-sale (OFS) of 1,72,36,808 equity shares worth Rs 1,784 crore ($241 million), at the upper price band.
Among the selling shareholders in the OFS are TPG Asia VII SF Pte Ltd offloading 1.29 crore equity shares and public shareholder Ram Ratna Wires selling its entire shareholding of 13.64 lakh shares. Promoters Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra, as well as Kabel Buildcon Solutions, part of the promoter group, will also be selling their shares in the OFS.
The anchor book saw participation from a total of 54 investors including prominent players such as Abu Dhabi Investment Authority, Government Pension Fund Global, HSBC Global, Ashoka Whiteoak ICAV, Carmignac Portfolio, TIMF Holdings, 3P India Equity Fund, Elara India Opportunities Fund, and Morgan Stanley (NYSE:MS) Asia (Singapore). Domestic investors like HDFC Mutual Fund, ICICI Prudential (LON:PRU), Axis Mutual Fund, Aditya Birla Sun Life Trustee, Kotak Mutual Fund, Nippon Life India Trustee, Mirae Asset, Franklin Mutual Fund, Bandhan Mutual Fund, Tata Mutual Fund, SBI Life Insurance, HDFC Life Insurance Company, and Max Life Insurance also invested in RR Kable via the anchor book.
The company plans to use the net fresh issue proceeds mainly for repaying debt amounting to Rs 136 crore ($18.4 million), with the remainder going towards general corporate purposes. RR Kabel had an outstanding borrowing of Rs 777.3 crore ($105 million) as of August 28. After the IPO concludes, RR Kabel shares are likely to be listed on BSE and NSE on Tuesday, September 26.
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