R R Kabel shares settle with nearly 16 pc premium in debut trade

Shares of wires and cables manufacturer R R Kabel Ltd ended with a premium of nearly 16 per cent against the issue price of Rs 1,035 on the first day of trading on Wednesday.R R Kabel became the first company to debut on the exchanges within two days of the issue closing.

Shares of wires and cables manufacturer R R Kabel Ltd ended with a premium of nearly 16 per cent against the issue price of Rs 1,035 on the first day of trading on Wednesday.

R R Kabel became the first company to debut on the exchanges within two days of the issue closing. It became the first company to list in the T+2 timeline -- the second working day after the issue closing on September 15.

The stock made its debut at Rs 1,179, up 13.91 per cent from the issue price on the BSE. During the day, it jumped 17.17 per cent to Rs 1,212.80. Shares of the company finally ended at Rs 1,196.65 apiece, a gain of 15.61 per cent.

On the NSE, it began the trade at Rs 1,180, registering a jump of 14 per cent. The stock ended at Rs 1,186.05 per piece, up 14.59 per cent.

The company commanded a market valuation of Rs 13,500.46 crore.

The initial share sale of R R Kabel was subscribed 18.69 times on the final day of subscription on Friday.

The Rs 1,964 crore-Initial Public Offering (IPO) had a price band of Rs 983-1,035 a share.

Capital markets regulator Sebi in August halved the timeline for listing of shares on stock exchanges after the closure of IPOs to three days (T+3) from six days (T+6).

The new listing timeframe will be voluntary for all public issues opening on or after September 1 and mandatory for all issues after December 1, 2023.

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 lighting plant in Bengaluru.

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

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