Stock Market News

RR Kabel set for market debut, expected to list with 10-15% premium

Consumer electrical products manufacturer RR Kabel is scheduled to make its stock market debut tomorrow, September 20, 2023. Analysts predict a listing premium of 10-15% over the issue price of Rs 1,035, indicating strong public interest in the initial public offering (IPO) and a positive equity market sentiment.

The IPO, which ran from Tuesday to Thursday last week, was significantly oversubscribed. It received 18.69 times more applications than available shares, with qualified institutional investors showing particularly robust demand, purchasing 52.26 times their allocated quota. High net-worth individuals and retail investors also demonstrated strong interest, bidding 13.23 and 2.13 times their respective reserved portions.

However, some analysts suggest that the upside for RR Kabel’s stock may be limited due to the company’s subdued financials. They also point out that 90% of the offer consists of an offer for sale (OFS) portion.

In a noteworthy development, RR Kabel will become the first company to list under the T+2 timeline, established by the Securities and Exchange Board of India (Sebi). This change is being implemented in two stages: it became voluntary for all public issues opening from September 1 and will be mandatory from December 1.

This move follows the successful T+3 listing of Ratnaveer Precision Engineering last week, which has contributed to sustaining bullish trends in the market.

Prior to its listing, RR Kabel’s IPO shares were trading at approximately a 10 percent premium in the grey market over the issue price, according to anonymous analysts.


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