R R Kabel

About R R Kabel Limited IPO Incorporated in 1995, R R Kabel is one of India’s leading FMEG (fast moving electrical goods) companies in India. Its product portfolio comprises wires and cables, and FMEG products like fans, lighting, switches and appliances. Company sells its wires and cable products under the ‘RR Kabel’ brand. It has an extensive pan-India distribution network of 3,450 distributors, 3,656 dealers and 1,14,851 retailers as of 30 June 2023. Further, the company has 21 warehouses spread across 17 states and union territories in India. Its manufacturing facilities are located in Gujarat, Dadra and Nagar Haveli, Daman and Diu, Uttarakhand, Karnataka and Himachal Pradesh. Through these manufacturing facilities, company can meet 100% requirements for wires and cables and 37% of the requirements for FMEG products — the balance requirement for FMEG products purchased through third parties. Between FY21 and FY23, the company exported its products to 63 countries and witnessed a CAGR growth of 47% in revenue from outside India. During the same time, its total revenue from operations grew at a CAGR of 27%. It also maintained an EBITDA margin of 6% in FY23. The Indian consumer electrical industry could grow at a CAGR of 10% until FY27 to reach a market value of approximately ₹2,665 billion, which could benefit the company. And now, R R Kabel Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to repay borrowings and general corporate purposes. Its shares will be listed on the NSE and the BSE. Here are key details about the R R Kabel IPO: Company Name R R Kabel Limited Company Type Private Company Established On 1995 R R Kabel Limited IPO Opening Date 13th September, 2023 R R Kabel Limited IPO Closing Date 15th September 2023 R R Kabel Limited IPO Allotment Status 21st September 2023 Credit of Shares to the Demat Account 25th September 2023 R R Kabel Limited IPO Listing Date 20th September,2023 R R Kabel Limited IPO Face Value ₹ 5 per share R R Kabel Limited IPO Lot Size 14 shares R R Kabel Limited IPO Issue Size Approx ₹1964 crore R R Kabel Limited IPO to be Listed on BSE, NSE R R Kabel Limited IPO Price band ₹983 – ₹1035 per share Financial snapshot Particulars FY 21 FY 22 FY 23 Revenue ₹2,723 crore ₹ 4,385 crore ₹ 5,599 crore Net Profit ₹ 135 crore ₹ 213 crore ₹ 189 crore A quick look at R R Kabel Limited IPO’s strengths, risks and threats Strengths Well-recognised and fastest-growing consumer electrical company amongst peers in India, growing at a CAGR of 43% between FY21 and FY23. Over the years, company has gained market share from 5% share in March 2015 to 7% share as of 31 March 2023, making it the fifth largest player in branded wires and cables. Technologically advanced manufacturing facilities wherein the Waghodia Facility is one of India’s largest consumer electrical manufacturing facilities as of 31 March 2023. Extensive domestic and global distribution network, making it the leading exporter of wires and cables from India, with a market share of approximately 9% in exports. Risks and threats Exposed to the risk arising from credit terms extended to its customers like distributors and dealers. As of 30 June 2023, company’s trade receivables were at ₹631 crore. Exposed to foreign currency fluctuation risks, as 22% of the total revenue from operations came from outside India in FY23. Significant power and fuel requirements accounting for ₹48 crore in FY23, any disruption in this could increase production costs and adversely affect operations. Experienced negative cash flows from investing activities consecutively in the last three years. Operates in a competitive and labor-intensive market. R R Kabel Limited IPO details | R R Kabel Limited IPO date According to the offer document filed by the company with the SEBI, the R R Kabel IPO’s opening date – in other words, the R R Kabel IPO launch date – will be 13th September 2023. The R R Kabel IPO closing date is 15th September 2023. After this, investors will be updated about the allotment status on 21st September 2023. Investors, who have been allotted shares, can expect them to be credited to their demat account on 25th September 2023. The R R Kabel IPO listing date is 26th September 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. | R R Kabel Limited IPO price band The IPO is an offer for sale as well as a fresh issue. The R R Kabel IPO price band has been set between ₹983 and ₹1,035 per share. Interested investors can choose a price within this band to apply for the IPO. The R R Kabel IPO listing price will be determined on 26th September 2023. The listing price is the price at which a company’s shares debut on the stock exchanges. | R R Kabel Limited IPO lot size The R R Kabel IPO details have been declared. The R R Kabel IPO lot size is set at 14 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the R R Kabel IPO issue size is approx ₹1,964 crore. How to pre-apply for the R R Kabel Limited IPO? You can pre-apply for the R R Kabel Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. Follow these steps to pre-apply for the IPO: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘ R R Kabel Limited IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Pre-Apply’ Accept the mandate on your UPI app How to apply for the R R Kabel Limited IPO? If you are interested in this investment opportunity but unsure how to apply for the R R Kabel Limited IPO, here we are listing out the steps for you. When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the R R Kabel Limited IPO on Upstox: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘ R R Kabel Limited IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Apply’ Accept the mandate on your UPI app How to check the R R Kabel Limited IPO allotment status? When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. Here’s a step-by-step guide on how to check the R R Kabel Limited IPO allotment status: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover page, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, you will find the ‘View all’ option Once you click on ‘View all’, you will be directed to the ‘IPO’ tab In the ‘IPO’ tab, click on ‘My applications’ In ‘My applications’, under the History section, your R R Kabel Limited IPO allotment status will be mentioned Open a demat account with Upstox to apply for the R R Kabel Limited IPO To apply for the R R Kabel Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app. Here is a step-by-step guide on how to open a demat account with Upstox: Click here to visit the demat account opening page on the Upstox website. Enter your phone number and other essential details to begin opening a demat account. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. Complete the e-verification using the OTP sent to your registered mobile number. This is all it takes to open a demat account with Upstox. Easy and quick, right? Upstox – trading app to apply for the R R Kabel Limited IPO Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. You can apply for the R R Kabel Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.