Wire and cables maker RR Kabel aims to raise $236 million via IPO

Indian wires and cables maker RR Kabel has priced its initial public offering (IPO) between Rs 983 and Rs 1,035, according to a newspaper advertisement on Friday, valuing the offering at around Rs 1,964 crore ($236.19 million).

The Mumbai-based company, backed by private equity firm TPG, will issue new shares worth Rs 180 crore, as per its prospectus dated Sept. 6, while existing shareholders will sell shares worth Rs 1,784 crore.

TPG, which owns a 16.67 per cent stake in the firm, will sell shares worth up to Rs 1,335 crore ($160.54 million). This is nearly 70 per cent 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 Rs 777 crore as of Aug. 28, as per the prospectus.

Its annual consolidated revenue in fiscal 2023 climbed about 28 per cent to Rs 5,599 crore from a year ago, while profit dropped over 11 per cent.

RR Kabel competes with companies such as Polycab India and Finolex Cables, shares which have soared more than 100 per cent 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.