TPG Capital-backed wire and cable manufacturer RR Kabel Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The IPO includes a new issue of shares with a total value of up to Rs 2.25 crore and an offer to sell (OFS) of over 1.72 crore shares by promoters and other shareholders, according to the draft red herring prospectus (DRHP).
Those selling shares in OFS are Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra, Kabel Buildcon Solutions Private Ltd and Ram Ratna Wires Ltd.
Apart from that, the US private equity firm TPG Capital, which has a 21 percent stake in RR Kabel, will sell part of its stake in the company as part of the OFS.
The company proposes to use the net proceeds of Rs 170 crore from new issues to fully or partially deleverage banks and financial institutions.
RR Cable, part of RR Global Group, reported net profit of Rs 214 crore and revenues of Rs 4386 crore in fiscal year 2021-22 (FY22). For the nine months ended December 2022, the company reported net profit of Rs. 1.25 crore and a turnover of Rs. 4,083 crore.
The Company is a leader in India’s consumer electronics industry, which encompasses wire and cable and fast moving electronics. The company also has one of the largest networks of electricians covering 1,47,810 electricians across India in FY22.
RR Cable is also the fastest growing consumer electrical company among its peers in India, growing at a CAGR of 33 percent between FY20 and FY22. The company had a market share of about 8 percent of market value in FY22. The same was 5 percent in the 2015 financial year.
Axis Capital Ltd, HSBC Securities and Capital Markets (India) Private Ltd, Citigroup Global Markets India Private Ltd and JM Financial Ltd are the lead bookers for the offering.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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