R R Kabel Limited IPO
Established in 1995, R R Kabel Limited is a provider of consumer electrical products designed for residential, commercial, industrial, and infrastructure applications.
R R Kabel operates in two main segments:
- Wires and Cables, which encompass house wires, industrial wires, power cables, and special cables.
- FMEG (Fast-Moving Electrical Goods), including fans, lighting, switches, and appliances.
Under the ‘RR Kabel’ brand, the company is engaged in the manufacturing, marketing, and sale of wires and cable products, and under the ‘Luminous Fans and Lights’ brand, it offers fans and lights.
In 2020, R R Kabel expanded its offerings by acquiring Arraystorm Lighting Private Limited, which added LED lights and related hardware (LED Lights Business) to its portfolio, catering to office, industrial, and warehouse spaces. In 2022, the company further strengthened its FMEG portfolio by acquiring the home electrical business (HEB) of Luminous Power Technologies Private Limited. This acquisition granted R R Kabel a limited and exclusive license to use the Luminous Fans and Lights brand for fan and light products for up to four years, with an option for renewal. It also included rights to use 61 registered trademarks and a portfolio of lights and premium fans.
R R Kabel operates two manufacturing units in Waghodia, Gujarat, and Silvassa, Dadra and Nagar Haveli, and Daman and Diu, primarily focused on wire and cable manufacturing and switches. Additionally, the company owns and operates three integrated manufacturing facilities in Roorkee, Uttarakhand; Bengaluru, Karnataka; and Gagret, Himachal Pradesh, specializing in FMEG product manufacturing.
R R Kabel’s customer base spans both domestic and international markets. In the three months leading up to June 30, 2023, 71% of its revenue from operations originated from the wires and cables segment, while 97% of the revenue from operations came from the FMEG segment through the B2C channel.
The R R Kabel IPO is a Book Built Issue with a total issue size of Rs 1,964.01 Cr. The IPO price range is ₹983 to ₹1035 per share, and it is set to be listed on the BSE and NSE.
Promoters of the company include Tribhuvanprasad Rameshwarlal Kabra, Shreegopal Rameshwarlal Kabra, Mahendrakumar Rameshwarlal Kabra, Kirtidevi Shreegopal Kabra, Tribhuvanprasad Kabra HUF, Kabra Shreegopal Rameshwarlal HUF, and Mahendra Kumar Kabra HUF.
Key Performance Indicators (KPIs) for the R R Kabel IPO include a Market Cap of Rs 11,675.63 Cr and a Price/Earnings (P/E) ratio of 39.26.
The primary objectives for the proceeds generated from the IPO are:
- Repayment or prepayment of the company’s borrowings from banks and financial institutions.
- General corporate purposes.
In conclusion, R R Kabel Limited, a prominent player in the consumer electrical products industry since its inception in 1995, boasts a diverse portfolio encompassing wires, cables, and FMEG items, including fans, lighting, switches, and appliances.
Their strategic acquisitions, such as Arraystorm Lighting Private Limited and the home electrical business of Luminous Power Technologies Private Limited, have expanded their product offerings and brand reach.
With a strong manufacturing presence across multiple locations in India, a growing domestic and international customer base, and a well-structured IPO, R R Kabel is positioned for continued growth and innovation in the dynamic electrical goods market.
