Cable manufacturer RR Kabel, backed by TPG Capital, has filed preliminary documents with the Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO).
According to the documents, the IPO will issue new equity shares worth up to Rs 225 crore, and the company’s promoters and other shareholders will bring an offer for sale (OFS) of equity shares of more than 1.72 crore.
TPG Capital’s 21% Stake to be Sold Under OFS
As part of the OFS, TPG Capital will sell its partial stake in RR Kabel. The US private equity firm holds a 21% stake in the company.
RR Kabel will use the funds raised from the new shares to partially or fully repay debt owed to banks and financial institutions.
Profitable Financial Year for RR Cable
RR Cable, a unit of RR Global Group, recorded a net profit of Rs 214 crore and revenue of Rs 4,386 crore in the financial year 2021-22.
In the first three quarters of the current financial year 2022-23, the company earned a net profit of Rs 125 crore and a revenue of Rs 4,083 crore.
Investment Opportunity for Stock Market Enthusiasts
Investors in the stock market have an opportunity to invest in RR Kabel’s IPO and potentially earn good returns on their investment.
The company’s strong financial performance in recent years, coupled with its plans to use funds raised from the IPO to pay off debts, make it an attractive investment opportunity.
Promoters and Shareholders Among the Sellers
Among the sellers of shares in the OFS are Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra, Kabel Buildcon Solutions Pvt Ltd, and Ram Ratan Wires Ltd.
With the IPO and OFS, RR Kabel aims to raise funds to expand its business and strengthen its position in the market.
