RR Kabel, a prominent player in the Indian consumer electrical industry, is all set to make its debut on stock exchanges on September 20. The company has become the first IPO firm to complete its listing under the T+2 timeline, meaning that it completed its listing process within three working days from the closure of the IPO. This voluntary move by RR Kabel has set a new trend in the market, as IPO firms typically follow the T+6 timeline for listing.
Although SEBI has not made the T+2 timeline mandatory for IPO firms until November 30, RR Kabel’s initiative has attracted attention and may eventually lead to a shorter listing timeline becoming the norm. Currently, banks are pushing to reduce the timeline from T+6 to T+3.
With its IPO, RR Kabel offered not more than 50% of shares for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and reserved 35% for retail investors. The company also reserved 1.15 lakh shares for its employees, offering them at a discounted price.
Market participants have noted that RR Kabel shares are already trading at a premium in the grey market, indicating positive investor sentiment. The estimated listing price is projected to be approximately ₹1,131, which would be 9.3% higher than the IPO price of ₹1,035.
The RR Kabel IPO, which opened for public subscription from September 13 to 15, was subscribed 18.69 times overall. The company plans to utilize the funds raised from the IPO primarily for repaying debt and general corporate purposes.
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