BENGALURU, Sept 8 Reuters Indian wires and cables maker RR Kabel has priced its initial public offering IPO between 983 rupees and 1,035 rupees, according to a newspaper advertisement on Friday, valuing the offering at around 19.64 billion rupees 236.19 million.

The Mumbaibased company, backed by private equity firm TPG, will issue new shares worth 1.8 billion rupees, as per its prospectus dated Sept. 6, while existing shareholders will sell shares worth 17.84 billion rupees.

TPG, which owns a 16.67 stake in the firm, will sell shares worth up to 13.35 billion rupees 160.54 million. This is nearly 70 of its total holding in RR Kabel, according to Reuters39; calculations.

RR Kabel would use proceeds from the fresh issue to repay its outstanding loans, which stood at 7.77 billion rupees as of Aug. 28, as per the prospectus.

Its annual consolidated revenue in fiscal 2023 climbed about 28 to 55.99 billion rupees from a year ago, while profit dropped over 11.

RR Kabel competes with companies such as Polycab India and Finolex Cables, shares which have soared more than 100 so far this year on the back of government infrastructure spending and a real estate upcycle.

Axis Capital, Citigroup, HSBC Securities and JM Financial are the lead bookrunning managers of the IPO.

1 83.1550 Indian rupees

Reporting by Hritam Mukherjee in Bengaluru; Editing by Janane Venkatraman

Source Reuters