The Rs 1,964-crore initial public offering of RR Kabel that opened on Wednesday was subscribed 0.25 times or 25 per cent on Day1.
The issue, priced in a band of Rs 983-Rs 1,035, will close on September 15. The lot size is 14 equity shares. Up to 50 per cent of the shares have been reserved for Qualified Institutional Buyers (QIB), 15 per cent for Non-Institutional Investors (NII), and up to 35 per cent for Retail Investors.
While the retail investors’ portion was subscribed 36 per cent, the quota for NIIs was subscribed 29 per cent, and that for employees 58 per cent. Qualified institutional buyers are yet to make a bid.
The IPO comprises fresh issue of equity shares worth Rs 180 crore and an offer-for-sale (OFS) of 1.72 crore shares worth Rs 1,784 crore, by the promoters and investors. TPG Asia VII SF Pte Ltd will offload 1.29 crore equity shares via OFS, while public shareholder Ram Ratna Wires, promoters Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, and Sumeet Mahendrakumar Kabra and Kabel Buildcon Solutions, will be the other selling shareholders in the OFS.
The consumer electricals product maker will use the net fresh issue proceeds mainly to repay debt amounting to Rs 136 crore, and the remainder on general corporate purposes.
The Gujarat-based wire & cables manufacturing company raised Rs 585.62 crore from anchor investors on Tuesday by allocating 56.58 lakh shares at Rs 1,035 each. According to disclosures on the exchanges, 54 investors participated in the anchor book, including marquee investors 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 Asia (Singapore).
Domestic investors such as HDFC Mutual Fund, ICICI Prudential, 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.