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RR Kabel, India’s 5th largest cable manufacturer has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator SEBI to float its IPO.
RR Kabel is India’s 5th largest cable manufacturer and a well-known name in the electrical sector. It manufactures various cables such as Fire and Security, cables for different voltages, single core, data & communication, auto cables, instrument cables, appliance wiring, construction and building ranges, and several others.
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The company’s products are ISO-certified and also compliant with quality standards of the UK, USA, Canada, and Germany, as their products are available in 58 countries. The company has one manufacturing facility in Silvassa, UT of Dadra & Nagar Haveli and Daman & Diu and another in Waghodia, Gujarat.
The company is one of the largest exporters of cables in India, accounting for around 11% of the export market of cables. The company had a turnover of Rs 4,386 crores with a profit of Rs 214 crores in FY22. For the period of 9 months ended in December 2022, the company posted revenues of Rs 4,083 crores with a net profit of Rs 125 crores.
According to the DRHP, the company plans to raise around Rs 225 crores through fresh issues of shares while having an OFS component of unknown size as well. TPG, which holds around 21% of the company, will be selling some of its stake alongside Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumutilizeendrakumar Kabra, Kabel Buildcon Solutions Private Ltd, and Ram Ratna Wires Ltd.
The company has proposed to use funds to the tune of around Rs 170 crores for the purpose of repayment of debts from banks and financial institutions, either in part or full. HSBC Securities, Citigroup Global, Axis Capital, and JM Financial are the book-running lead managers of the IPO.
- Aman Agarwal
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