Consumer electrical company RR Kabel will list on exchanges on September 20, just two days after the closing date of its IPO. It is expected to list at a 9.3 per cent premium. This is the first stock that will be listed on exchanges within three days of end of subscription.
RR Kabel IPO will list on exchanges on September 20. (Photo credit: TV9)
Mumbai: Electricals company RR Kabel’s stock will be listed on exchanges on September 20, just two days after its IPO closed, since it volunteered for markets regulator SEBI’s T+2 listing timeline. The company’s Rs 1,964.01 crore IPO closed on September 15. The company’s IPO opened on September 13 with a price band of Rs 983-1,035 per share.
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RR Kabel GMP
The grey market premium (GMP) for RR Kabel’s stock was at Rs 96 on Tuesday, indicating a 9.3 per cent premium over the IPO price cap of Rs 1,035 apiece.
This indicates that RR Kabel’s stock may be listed at a price of Rs 1,131 apiece on Wednesday.
GMP indicates the expected price difference at which a share may be listed on the exchange. The price difference represents the premium over the IPO price band.
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Why is RR Kabel being listed in just two days?
RR Kabel is the first company to issue share under the T+2 settlement regime introduced by Securities and Exchange Board of India (SEBI).
Until now, the settlement timeline for IPOs was T+6, or six days after the IPO subscription ended. Now, the shares will be listed on exchanges within just 3 days.
RR Kabel’s IPO closed on Friday, September 15. Now, it will list on Wednesday, September 20.
RR Kabel IPO details
RR Kabel’s Rs 1,964.01 crore IPO opened for subscription on September 13 until September 15.
Under the IPO, the company issued fresh equity worth Rs 180 crore.
The company’s promoters and investors also offloaded a portion of their holdings in an offer for sale (OFS) worth Rs 1,784 crore or 1.72 crore shares.
Of these, 1.29 crore shares were offloaded by TPG Asia VII SF and 1.364 lakh shares were sold by public shareholder Ram Ratna Wires (RRW), which equalled its entire stake in RR Kabel.
Other sellers in the OFS included promoters:
- Mahendrakumar Kabra
- Hemant Kabra
- Sumeet Kabra
- Kabel Buildcon Solutions
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What was the lot size of RR Kabel IPO?
RR Kabel’s IPO lot comprised 14 stocks. Subscribers could place offers for one lot of 14 shares and multiples of 14 thereof.
RR Kabel IPO was oversubscribed 18.69X on the whole.
- The IPO was subscribed 52.26X by qualified institutional buyers.
- Non-institutional investors subscribed the IPO 13.23X.
- Retail investors subscribed the IPO by 2.13 X.
RR Kabel plans to utilise proceeds from the sale towards debt repayment worth Rs 136 crore and general corporate purposes.