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Ahmedabad, May 8 Branded wires and cables maker, RR Kabel Ltd, on Friday filed draft papers for an initial public offering to raise up to Rs 225 crore through a fresh issue of equity and an offer-for-sale from the existing shareholders, including PE player TPG Asia VII SF Pte. Ltd.
The fresh issue aggregates up to Rs 225 crore and the offer-for-sale is for 17,236,808 equity shares of face value of Rs 5 each.
The proceeds from the IPO will be used towards funding repayment or prepayment of loans taken from banks and financial institutions, estimated at Rs 170 crore.
Besides the four promoter group selling shareholders, US-based private equity firm TPG Asia VII SF Pte Ltd is looking to sell up to 12.9 million shares. The PE player currently holds 20.99 per cent stake in RR Kabel, with 23.3 million shares. The other selling shareholder is Ram Ratna Wires Ltd, which has put its entire 1.23 per cent stake or 1.36 million shares on offer, the Draft Red Herring Prospectus (DRHP) said.
RR Kabel, part of the R R Global Group, recorded revenues of Rs 4,386 crore in fiscal 2021-22, with net profit at Rs 214 crore. For the nine-month period ending December 2022, its revenues stood at Rs 4,083 crore, with net profit of Rs 125 crore.
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RR Kabel is among the fastest growing consumer electrical companies in India, having a strong presence in wires and cables, and fast-moving electrical goods (FMEG).
Revenue contribution from the FMEG segment was 10.92 per cent for the nine months ended December 31, 2022.
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RR Kabel has a market share of about 8 per cent. The company’s DRHP puts the Total Addressable Market (TAM) in the wires and cables segment at Rs 45,500 crore as of fiscal 2022, while in the FMEG segment, the TAM is approximately Rs 74,000 crore as of fiscal 2022.
Axis Capital Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, Citigroup Global Markets India Private Ltd and JM Financial Ltd are the book-running lead managers to the issue.
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