TPG Capital-backed RR Kabel gets Sebi nod for IPO

TPG Capital-backed cable manufacturer RR Kabel Ltd has received Sebi's approval to raise funds through an Initial Public Offering (IPO). The Mumbi-headquartered company had filed draft papers in May. The IPO comprises a fresh issue of equity shares aggregating up to Rs 225 crore and an Offer For Sale (OFS) of over 1.72 crore equity shares by promoters and other shareholders, according to the Draft Red Herring Prospectus (DRHP).

The markets regulator gave its observations letter, which is equal to approval, on August 24.

According to the draft papers, Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra, Kabel Buildcon Solutions Pvt Ltd, and Ram Ratna Wires Ltd are selling shares in the OFS. Apart from these, US-based private equity firm TPG Capital, which holds a 21 per cent stake in RR Kabel, will partly sell its stake in the company as part of the OFS.

RR Kabel, part of RR Global Group, proposes to utilise the net proceeds of Rs 170 crore from fresh issues to pare down debt availed from banks and financial institutions. The company posted a net profit of Rs 214 crore and revenues of Rs 4,386 crore in 2021-22. For the nine months ended December 2022, the company reported a net profit of Rs 125 crore and revenues of Rs 4,083 crore.

The equity shares of the company are proposed to be listed on the BSE and the NSE.

(With inputs from PTI)