Indian cables maker RR Kabel’s IPO oversubscribed nearly 19 times

BENGALURU (Reuters) – Indian wires and cables maker RR Kabel’s initial public offering, valued at about 19.64 billion rupees ($236.25 million), was oversubscribed nearly 19 times on Friday, according to data from the National Stock Exchange.

Investors bid for 248.9 million shares by the final day of bidding, 18.69 times the 13.3 million shares on offer.

Mumbai-based RR Kabel, which is backed by private equity firm TPG, priced its IPO between 983 rupees and 1,035 rupees, according to a newspaper advertisement last week.

TPG, which owns a 16.67% stake in the company, will sell shares worth up to 13.35 billion rupees, or nearly 70% of its total holding in RR Kabel, based on Reuters calculations.

RR Kabel plans to use the proceeds to repay outstanding debt, which was 7.77 billion rupees as of Aug. 28, according to the prospectus.

The company’s consolidated revenue in fiscal 2023 rose about 28% to 55.99 billion rupees from a year earlier, while profit dropped more than 11%.

RR Kabel competes with companies such as Polycab India and Finolex Cables, whose shares have more than doubled so far this year on the back of government infrastructure spending and a real estate upcycle.

Axis Capital, Citigroup, HSBC Securities and JM Financial are the lead book-running managers for the RR Kabel IPO.

($1 = 83.1320 Indian rupees)

(Reporting by Ashish Chandra in Bengaluru; Editing by Shounak Dasgupta)