IPO RECORD! 1st Time Ever! THIS Company To List On Exchanges (Image Source: iStockphoto, TN Digital)
, which concluded its IPO bidding process last Friday, is scheduled to make its stock market debut on Wednesday. Notably, this debut marks a significant milestone as RR Kabel becomes the first company to go public under the T+3 listing process for new offerings, according to The Times of India report. The Securities and Exchange Board of India (SEBI
) had previously announced in August that, starting from December 2023, all IPOs would be required to follow the T+3 listing process instead of the earlier T+6.
Sebi said in a circular., “Consequent to extensive consultation with the market participants and considering the public comments received pursuant to the consultation paper on the aforesaid subject matter, it has been decided to reduce the time taken for the listing of specified securities after the closure of a public issue to three working days (T+3 days) as against the present requirement of six working days (T+6 days); ‘T’ being issue closing date,”
The regulator believes that reducing the timelines for IPO listing and share trading will be advantageous for both issuers and investors. An example of this is seen in the case of RR Kabel, where their IPO generated significant interest. They received bids for 24,88,98,328 shares, a remarkable 18.69 times oversubscription compared to the 1,33,17,737 shares offered. This strong demand was observed across different investor categories.
Qualified institutional buyers
(QIBs) subscribed to the offering 52.26 times over, indicating their high level of interest. Non-institutional investors also showed substantial interest, with their subscription being 13.23 times the allotted portion. Retail investors
, although slightly less enthusiastic, still subscribed 2.13 times over their allocated share.
RR Kabel, a subsidiary of the RR Global Group, operates five manufacturing units, including cable and wire units in Gujarat and Silvassa, a commercial lighting plant in Bengaluru, and fast-moving electrical goods (FMEG) units in Uttarakhand and Himachal Pradesh. Cables and wires contribute significantly to the company's revenue, accounting for 88 percent of their income. To strengthen their financial position, the company intends to use the proceeds from the IPO to reduce their debt burden.