RR Kabel shares make a strong D-st debut; stock lists at 14% premium at Rs 1,180

Shares of RR Kabel made a strong debut at Dalal Street on Wednesday as the stock was listed at Rs 1,180, a premium of 14 per cent on the National Stock Exchange (NSE), compared to its issue price of Rs 1,035. Similarly, the stock kicked off its maiden trading session at Rs 1,179, listing at a similar premium on BSE.

A day before its listing, RR Kabel was commanding a premium of Rs 95-100 in the grey market, signaling a mild listing pop of up to 10 per cent over its given issue price. However, the FMEG player became the first entity in the Indian stock markets to make a T+2 listing, which is listing after two working days from the closure of the issue.

RR Kabel's initial public offering was open for bidding between September 13 to September 15. The company raised a total of Rs 1,964 crore from the primary markets as it offered its shares in the fixed price band of Rs 983-1,035 apiece. Investors could make a bid of a minimum of 14 shares and its multiples thereon.

The big-ticket issue was overall subscribed 18.69 times. The portion for qualified institutional bidders (QIBs) was booked 52.26 times, while the allocation for non-institutional investors fetched 13.23 times bids. The reservation for retail investors was subscribed only 2.13 times, whereas the quota for employees was booked 2.69 times.

RR Kabel, incorporated in 1995, provides consumer electrical products used for residential, commercial, industrial and infrastructure purposes. Its products are used in two major segments, namely wires and cables. Its FMEG business includes fans, lighting, switches, and other appliances.

Axis Capital, JM Financial, HSBC Securities & Capital Markets and Citigroup Global Markets India were lead managers to the issue, while Link Intime India was the registrar for this IPO. Majority of the brokers had rated the issue with a 'subscribe' tag during the book-building process.


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