TPG-backed RR Kabel likely to file IPO papers by May 2023
The proposed IPO of TPG-backed RR Kabel is likely to comprise fresh issuance as well as an offer for sale (OFS) by existing shareholders, sources told CNBC-TV18.
RR Kabel — a Mumbai-based manufacturer of wires and cables — is likely to file papers with market regulator SEBI by May 2023 to float an initial public offer (IPO), sources told CNBC-TV18. The company — backed by US-based private equity firm TPG — has already started to hire investment bankers for the IPO process, they said.
It aims to launch the initial share sale tentatively by October 2023, the sources said.
RR Kabel will be the second copany from RR Global — a $1.25 billion conglomerate — to get listed after Ram Ratna Wires.
The proposed IPO is likely to comprise fresh issuance as well as an offer for sale (OFS) by existing shareholders. In other words, the company will get a portion of the total IPO as capital — the proceeds from the OFS portion instead go to the promoters and existing shareholders.
The proposed offer for sale is estimated at Rs 1,500-2,000 crore via dilution of 13-15 percent stake, the sources said. The company is likely to be valued at Rs 11,000-15,000 crore under the IPO.
TPG is looking to sell about 10-12 percent of its holding in RR Kable through the public offer. The US-based investment firm owns about 21 percent in RR Kabel.
The promoters — the Kabra family — is looking to sell about two percent in the company, they said. The family owns about 74 percent in the company.
Polycab, KEI Industries and Havells are RR Kabel's listed competitors.
(Edited by : Sandeep Singh)
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