RR Kabel IPO- RR Kabel Limited is getting ready to launch its first-time stock sale, known as an IPO, starting on September 13, 2023. RR Kabel is a well-known company in the business of making electrical products for consumers. Many investors are excited about this IPO. In this detailed article, we’ll give you all the important information about RR Kabel’s IPO, like when it starts, what the company does, the good and bad things to consider, and a full review. This will help you make a smart decision about whether to invest in it.
R R Kabel IPO Timetable
| IPO Open Date | Wednesday, September 13, 2023 |
| IPO Close Date | Friday, September 15, 2023 |
| Basis of Allotment | Thursday, September 21, 2023 |
| Initiation of Refunds | Friday, September 22, 2023 |
| Credit of Shares to Demat | Monday, September 25, 2023 |
| Listing Date | Tuesday, September 26, 2023 |
About Company
RR Kabel Limited is a company that was founded in 1995 and specializes in making electrical products for homes, businesses, industries, and infrastructure. They have two main parts of their business:
- Wires and Cables: This part of the company makes things like house wiring, industrial wiring, power cables, and special cables. These are used in various electrical systems.
- FMEG (Fans, Lighting, Switches, and Appliances): Under the brand name ‘Luminous Fans and Lights,’ RR Kabel makes and sells fans, lighting solutions, switches, and appliances.
In recent years, RR Kabel has expanded its product offerings. They bought a company called Arraystorm Lighting Private Limited in 2020, which allowed them to start making LED lights and related equipment for offices, industries, and warehouses. In 2022, they acquired the home electrical business (HEB) of Luminous Power Technologies Private Limited, which made their FMEG business even stronger.
RR Kabel has factories in different parts of India where they make wires, cables, and FMEG products. They also have customers not only in India but also in other countries. Most of their recent revenue comes from the FMEG segment, especially through direct sales to customers (B2C).
OBJECTIVE OF RR KABEL IPO
RR Kabel Limited is planning to go public, and their IPO has two parts. One part involves existing shareholders selling their shares, and the company won’t get any money from that. The other part is where the company plans to use the money raised from the IPO for specific purposes:
- Paying off loans they took from banks and financial institutions.
- General company needs.
R R Kabel IPO Details
| IPO Open | September 13, 2023 |
| IPO Close | September 15, 2023 |
| IPO Price | ₹983 – ₹1035 |
| Face Value | ₹5 |
| IPO Size | ₹1,964.01 Cr |
| Listing At | BSE, NSE |
| Lot Size | 14 |
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VALUATION OF RR KABEL IPO
The IPO price range for RR Kabel is set between Rs. 983 to Rs. 1,035 per share. When we look at their earnings in the past year and the last three years, the price-to-earnings (P/E) ratio is around 61x. Comparing this to similar companies in the industry, RR Kabel’s IPO price might be considered a bit high.
In the unofficial market, known as the Grey Market, RR Kabel IPO GMP of around 310 to 320 .
| Financial Year ending / Period ending (Amt in Crores) | ||||
| Particulars | FY20 | FY21 | FY22 | FY23 |
|---|---|---|---|---|
| Assets | 1,545.36 | 1,715.11 | 2,050.64 | 2,633.62 |
| Revenue | 2,505.54 | 2,745.94 | 4,432.22 | 5,633.64 |
| Profit After Tax | 122.40 | 135.40 | 213.94 | 189.87 |
| Net Worth | 875.07 | 1,033.38 | 1,237.05 | 1,390.47 |
| Reserves and Surplus | 459.23 | 594.93 | 781.31 | 914.15 |
| Total Borrowing | 395.29 | 498.71 | 521.11 | 515.84 |
Now, let’s talk about the good and not-so-good aspects of investing in RR Kabel IPO:
Positive Factors RR KABEL IPO:
- RR Kabel offers a wide range of products for various needs, which can be a stable business advantage.
- They’ve made strategic acquisitions that expanded their product offerings and market reach.
- They have multiple manufacturing units in India, ensuring efficient production.
- They serve diverse customers, reducing reliance on one market or customer group.
- They’ve been consistently growing their revenue recently.
- The company is focused on innovation and plans to expand.
Risk Factors RR KABEL IPO :
- Despite revenue growth, they faced margin pressure in the past year.
- Fluctuating prices of raw materials can affect their profitability.
- Any disruptions in their supply chain could impact production.
- Problems at their manufacturing facilities can harm their business and finances.
- The IPO might be seen as expensive compared to similar companies.
- Their reliance on certain distributors, especially in foreign markets, could be risky.
- Past and potential deals with related parties might raise concerns about conflicts of interest and how the company is run.
So, in simpler terms, investing in RR Kabel’s IPO has both good and not-so-good sides. They have a variety of products, are growing, and have expansion plans. However, there are risks like fluctuating raw material prices and the IPO might be seen as pricey. If you’re okay with some risks and plan to invest for the long term, you might consider it.
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