R R Kabel to open its IPO on September 13; price band fixed at Rs 983 to Rs 1,035 per equity share, ET RealEstate
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NEW DELHI: R R Kabel, a wire & cable manufacturer, will open its initial public offering (IPO) of equity shares on Wednesday, September 13, 2023 for subscription. The IPO comprises of a fresh issue of equity shares aggregating up to Rs 180 crore and an offer for sale up to 17,236,808 equity shares by selling shareholders.
The offer also includes a reservation of equity shares aggregating up to Rs 10.8 crore that will be available for allocation on a proportionate basis to certain eligible employees of the company. A discount of Rs 98 per equity share is being offered to eligible employees bidding in the Employee Reservation Portion.
The offer will close on Friday, September 15, 2023.
The price band of the offer has been fixed at Rs 983 to Rs 1,035 per equity share. Bids can be made for a minimum of 14 equity shares and in multiples of 14 equity shares thereafter. The floor price is 196.60 times and the cap price is 207.00 times the face value of the equity shares.
The company proposes to utilize the proceeds towards repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions estimated to be Rs 136 crore; and balance amount towards general corporate purposes.
The offer for sale comprises of up to 754,417 equity shares by Mahendrakumar Rameshwarlal Kabra; up to 754,417 equity shares by Hemant Mahendrakumar Kabra; 754,417 equity shares by Sumeet Mahendrakumar Kabra; up to 707, 200 equity shares by Kabel Buildcon Solutions, up to 1,364,480 equity shares by Ram Ratna Wires and up to 12,901,877 equity shares by TPG Asia VII SF.
Not more than 50% of the net offer will be available for allocation on a proportionate basis to qualified institutional buyers (QIBs).
Further, 5% of the net QIB portion shall be available for allocation on a proportionate basis to mutual funds only, and the remainder of the Net QIB portion shall be available for allocation on a proportionate basis to all QIB other than anchor investors, including mutual funds, subject to valid Bids being received at or above the offer price.
Further, not less than 15% of the net offer will be available for allocation to non-institutional bidders such that: (a) one-third of the portion available to non-institutional investors shall be reserved for applicants with an application size of more than Rs 0.20 million and up to Rs 10 lakh, and (b) two-thirds of the portion available to non-institutional investors shall be reserved for applicants with an application size of more than Rs 10 lakh, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Investors, subject to valid Bids being received at or above the offer price.
Further, not less than 35% of the net offer shall be available for allocation to retail individual bidders.
Axis Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India) and JM Financial are the book running lead managers to the offer.