RR Kabel Ltd, India’s fifth largest branded wire and cable manufacturer, has filed its draft red herring prospectus (DRHP) for its upcoming initial public offer (IPO) of equity shares with the Securities Exchange Board of India (SEBI). TPG-backed India’s 5th largest wires & cable manufacturer RR Kabel files for IPO.
Company Rs. 225 crore in new issue and Rs. Plans to raise funds through an offer for sale of 1,72,36,808 equity shares of face value of 5. The total amount received through RR Cable Company funding from banks and financial institutions is estimated at Rs. 170 crore plans for full or partial repayment or prepayment of funds.
US-based private equity firm TPG Asia VII SF Pte Ltd, which holds a 20.99% stake in RR Cable, will sell some of its stake in the company through the IPO.
RR Cable in FY 2022 Rs. It is part of RR Global Group with a revenue of 4,386 crores. In the nine months ending December 2022, the company’s revenue stood at Rs. 4,083 crores. Net profit for the nine months ending FY 2022 and December 2022 respectively stood at Rs. 214 crore and Rs. 125 crores.
The company is a leader in the Indian consumer electrical industry including wires and cables and fast moving electrical goods (FMEG), operating in India for over 20 years. RR Cable is also the fastest growing consumer electrical company among our peers in India, growing at a CAGR of 33% between FY 2020 and FY 2022. (Source: Technopak Report)
The company’s market share by market value in FY2022 is around 8% as against 5% in FY2015. RR Kabel derives the highest revenue from the business-to-consumer sales channel in Wires & Cables with approximately 75% of revenue from the BTUC sales channel in fiscal 2022.
RR Kabel is also the largest exporter of wire and cable from India in terms of value, accounting for about 11% market share of exports. The company also has the largest network of electricians, covering 147,810 electricians across India by FY 2022.
RR Cable’s revenue contribution from the FMEG segment, which stood at 10.92% for the nine months ended December 31, 2022, is the highest among its peers.
Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, Citigroup Global Markets India Private Limited and JM Financial Limited are the book running lead managers of the issue.