Wires maker R R Kabel IPO subscribed 1.39 times on Day 2 of bidding

The Initial Public Offering (IPO) of wires and cables manufacturer R R Kabel was subscribed 1.39 times on the second day of bidding on Thursday.

The Rs 1,964 crore IPO received bids for 1,85,71,364 shares against 1,33,17,737 shares on offer, as per NSE data.

The category for non-institutional investors received 2.1 times subscription, while the quota for Qualified Institutional Buyers (QIBs) got subscribed 1.65 times. The portion for Retail Individual Investors (RIIs) was subscribed 95 per cent.

The IPO has a fresh issue of up to Rs 180 crore and an offer for sale of up to 17,236,808 equity shares.

The IPO has a price range of Rs 983-1,035 per share.

R R Kabel's IPO was subscribed 25 per cent on the first day of bidding on Wednesday.

On Tuesday, the TPG-backed firm said it mobilised Rs 585.62 crore from anchor investors.

The company runs five manufacturing units -- one cable and wire unit each at Waghodia in Gujarat and at Silvassa in Dadra and Nagar Haveli, and a commercial lightings plant in Bengaluru.

It also has a fast moving electrical goods unit at Roorkee in Uttarakhand and another at Gagret in Himachal Pradesh. A total of 88 per cent of its revenue comes from cables and wires.

The company proposes to utilise Rs 136 crore of the net proceeds from the fresh issue to pare down debt.

R R Kabel -- a part of the RR Global Group -- had reported a net profit of Rs 214 crore and a revenue of Rs 4,386 crore in 2021-22.

Axis Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India) and JM Financial are the managers to the offer.