R R KABEL LIMITED INITIAL PUBLIC OFFERING TO OPEN ON SEPTEMBER 13, 2023

16 Sep 2023

R R Kabel Limited(the “Company”), shall open its initial public offering of Equity Shares on Wednesday, September 13, 2023. The initial public offering comprises of a fresh issue of Equity Shares aggregating up to ? 1,800 million (“Fresh Issue”) and an offer for sale up to 17,236,808 Equity Shares by selling shareholders (the “Offer for Sale” and together with the Fresh Issue, the “Offer”). The Offer also includes a reservation of Equity Shares aggregating up to ?108 million that will be available for allocation on a proportionate basis to certain eligible employees of the Company (“Employee Reservation Portion”) in the manner described in the red herring prospectus dated September 6, 2023 (“RHP”) filed with the Registrar of Companies, Maharashtra at Mumbai. A discount of ?98 per Equity Share is being offered to eligible employees bidding in the Employee Reservation Portion. The Offer less the Employee Reservation Portion is the “Net Offer”.

The Anchor Investor Bidding Date shall be Tuesday, September 12, 2023.  The Offer will open on Wednesday, September 13, 2023 for subscription and will close on Friday, September 15, 2023.

The Price Band of the Offer has been fixed at ? 983 to ?1,035 per Equity Share. Bids can be made for a minimum of 14 Equity Shares and in multiples of 14 Equity Shares thereafter.

The Company proposes to utilize the proceeds raised through the Fresh Issue towards Repayment or prepayment, in full or in part, of borrowings availed by the Company from banks and financial institutions estimated to be ? 1,360 million; and balance amount towards general corporate purposes.

The Offer for Sale comprises of up to 754,417 Equity Shares by Mahendrakumar Rameshwarlal Kabra; up to 754,417 Equity Shares by Hemant Mahendrakumar Kabra; 754,417 Equity Shares by Sumeet Mahendrakumar Kabra; up to 707, 200 Equity Shares by Kabel Buildcon Solutions Private Limited, up to 1,364,480 Equity Shares by Ram Ratna Wires Limited, and up to 12,901,877 Equity Shares by TPG Asia VII SF Pte.Ltd (“Investor Selling Shareholder”).   

The Equity Shares are being offered through the RHPandare proposed to be listed on recognized stock exchanges (the “Stock Exchanges”) being BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”). For the purposes of the Offer, BSE is the Designated Stock Exchange.

This Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended (“SEBI ICDR Regulations”). The Offer is being made in accordance with Regulation 6(1) of the SEBI ICDR Regulations and through the Book Building Process, wherein not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to qualified institutional buyers (“QIBs”, and such portion, the “QIB Portion”). Our Company and the Investor Selling Shareholder may, in consultation with the Book Running Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), out of which at least one-third shall be available for allocation to domestic Mutual Funds only, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion.

Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB other than Anchor Investors, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Net Offer shall be available for allocation to Non-Institutional Bidders such that: (a) one-third of the portion available to Non-Institutional Investors shall be reserved for applicants with an application size of more than ?0.20 million and up to ?1.00 million, and (b) two-thirds of the portion available to Non-Institutional Investors shall be reserved for applicants with an application size of more than ?1.00 million, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Investors, subject to valid Bids being received at or above the Offer Price. Further, not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders (“RIBs”) in accordance with SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price.

All Bidders, other than Anchor Investors, are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank account (including UPI ID (as defined hereinafter) in case of UPI Bidders) which will be blocked by the SCSBs or the Sponsor Banks as applicable, to participate in the Offer. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see “Offer Procedure” beginning on page 436 of the RHP.

Axis Capital Ltd, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited and JM Financial Limited are the book running lead managers to the Offer.

All capitalised terms referred to in this press release that have not been defined shall have the same meaning as prescribed in the RHP.