RR Kabel Listing: RR Kabel, a company manufacturing electrical wires, cables, switches and fans, is going to become the first company in the country which will be listed in the stock market just two days after the Initial Public Offer (IPO). RR Cable is going to be listed today. The company’s IPO was closed last Friday. Before this, Ratnaveer Precision Engineering Ltd. was among the companies which got listed in the shortest time. Which was listed in the market on the third day after the closure of the IPO. Whereas, RR Cable is going to make history by getting listed in the market within two working days of the closing of the issue.
SEBI had changed the rules
Market regulator Securities and Exchange Board of India (SEBI) in August had halved the time taken for listing of shares on the stock exchanges to three days (T plus three) after the issue is closed. Whereas earlier the company used to be listed on the sixth day (T plus six) after the closing of the IPO. The new listing deadline is voluntary for all public issues on or after September 1. Whereas after December 1, 2023, it will be applicable to all issues. Reducing the time limit for listing and trading of shares will benefit the issuers as well as investors. Issuers will have faster access to the capital raised. This will make doing business easier while investors will get the opportunity to get quick loans and cash for their investments.
Company wants to raise Rs 180 crore from the market
As per the circular of Stock Exchange BSE, trading members of the Stock Exchange are informed that with effect from Wednesday, September 20, the equity shares of RR Cable Limited will be listed under ‘B’ group securities. Under the IPO of RR Cable, fresh issues worth Rs 180 crore have been issued while the promoters have placed 1.72 crore equity shares under the offer for sale. The total issue of Rs 1,964 crore was subscribed 18.69 times. The price range for the issue was kept at Rs 983-1,035 crore per share. The time period for applying for the issue was from 13 September to 15 September.
TPG Capital holds 21 percent stake in RR Cable.
Those who sold shares in OFS include Mahendrakumar Rameshwarlal Kabra, Hemant Mahendrakumar Kabra, Sumeet Mahendrakumar Kabra, Kabel Buildcon Solutions Private Limited and Ram Ratna Wires Limited. Private equity firm TPG Capital will partially sell its stake in the company under OFS. TPG Capital holds 21 percent stake in RR Cable. The company proposes to use Rs 136 crore of the net proceeds from the fresh issue to fully or partially reduce the debt taken from banks and financial institutions.
what is ipo
Full name of IPO Initial Public Offering Is. It is a financial process in which a private company decides to issue an offer of its stock to investors in the open market. This is the first time for the company when it goes to sell its shares in the open market. When a company issues an IPO, it publicizes its shares and gives investors the opportunity to buy its shares. Through IPO, the company makes its stock available to investors through public and news media so that they can buy it. Through IPO, the company mostly tries to attract new investors for its stock and through this the company collects most of the capital to fulfill its development and financial plans. This is an attractive option for investors because it offers them the opportunity to own a public company.
How to invest in IPO
Before investing in IPO, understand the related documents completely. Investing in this is risky. In such a situation, take help from a financial advisor. To subscribe to an IPO, you must have a demat account. If you do not have one, you can approach a registered stockbroker or Depository Participant (DP) to open a Demat account. Next, choose a registered stockbroker that offers IPO services. You can do this through online trading platforms or by visiting the broker’s office in person. Stay updated with IPO announcements and their details. Information about upcoming IPOs is usually available on the websites of stock exchanges, financial newspapers and the official website of the company issuing the IPO. Once you have selected an IPO that you want to subscribe to, you can apply online or offline.