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  • rr kabel share price: RR Kabel shares to list on Wednesday. Here’s what GMP signals

rr kabel share price: RR Kabel shares to list on Wednesday. Here’s what GMP signals

The shares of RR Kabel will debut on the exchanges on Wednesday, September 20. Ahead of the listing, the company’s shares are fetching a premium of Rs 96 in the unlisted market.

Considering the issue price of Rs 1,035, the stock is expected to debut at a premium of 9.3% over the issue price.

However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.

The company has become the first IPO firm to complete its listing under the T+2 timeline. Under this norm, an IPO firm needs to complete its listing process within three working days from the closure of the IPO.

The markets regulator has recently announced changes to IPO listing rules, reducing the timeline from T+6 days to T+3 days, where ‘T’ is the IPO closing date.

The Rs 1,964.01 crore worth RR Kabel IPO opened for public subscription on September 13 and closed on September 15. The IPO comprised a fresh issue size of Rs 180 crore and an offer for sale (OFS) segment of up to 1.72 crore equity shares.

The IPO received a decent response from investors with the overall subscription at 18.69 times. All the categories were fully subscribed, led by institutional investors (52.26x). The retail part was the least subscribed at 2.13x.RR Kabel is India’s fastest-growing consumer electric company over FY21-FY23 and the fifth largest in the wires and cable space with a branded value market share of 7% at FY23-end.

Its revenue, EBITDA and PAT grew at a CAGR of 31%, 16% and 16% respectively over FY20-23. Analysts estimate the same to grow at a CAGR of 16%, 33% and 36%, respectively, over FY23-26.

The company proposes to utilise the net proceeds towards the funding of repayment or prepayment, in full or in part, of borrowings availed by the company from banks and financial institutions estimated to be Rs 170 crore.

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