R R Kabel made a great debut on the stock exchange today; as against the IPO price of Rs.1035, the stock got listed on the BSE at Rs.1179, a premium of 14% and rose to a high of Rs.1198, up 16% and is now trading at Rs.1161 levels.
The IPO did well with QIBs taking the lions portion of the issue; totally subscribed 18.69x, QIBs portion was at 52.56x, HNIs at 13.23x and retail investors at 2.13x.
R R Kabel is India’s fifth largest wire and cable maker. It enjoys 5% value market share of the Rs.65,000 crore Indian wires and cables market and 7% organized share. Nearly 1/4th of its Rs. 5,600 crore revenue is derived from exports (to UAE, UK, Myanmar, USA and Austria), commanding 9% export market share. It has a deep domestic distribution network, having doubled reach to 3 lakh electricians in the past 15 months, and serving 1.1 lakh retailers through 7,100 dealers and distributors.
In our IPO Analysis, we had concluded - In the short term, the IPO is fully valued. Thus, only those with a long term view, may apply in the IPO.