RR Kabel IPO : How to check the Allotment Status
RR Kabel Ltd IPO gets a strong response
The ₹1,964.01 crore IPO of RR Kabel Ltd, consisted of an offer for sale (OFS) and a fresh issue combined. The Fresh issue was to the tune of ₹180 crore while the OFS portion was to the tune of ₹1,784.01 crore. Thus, there is transfer of ownership via OFS and also dilution of equity via fresh issue in this case. The issue was overall subscribed 18.69 times, with the maximum subscription coming from the QIB segment, which got subscribed over 52.26 times. While the HNI / NII segment got subscribed about 13.23 times, the retail portion got subscribed a more modest 2.13 times. Most of the QIB subscriptions came in on the last day of the IPO, which is the norm, although it was surprising that the retail portion also got most of the response on the last day only. The price band for the IPO was ₹983 to ₹1,035, and looking at the response, it looks fairly likely that the price discovery would eventually happen at the upper end of the price band.
When will the basis of allotment be finalized?
The first step for checking the allotment status of the IPO online is the completion of the basis of allotment of RR Kabel Ltd. The basis of allotment will be finalized late on Thursday, 21st September 2023. The refunds will be initiated by the company on 22nd September 2023. The demat credits are expected to happen on 25th September 2023 while the listing of the stock on the NSE and the BSE will happen on 26th September 2023. In between there is a weekend so the allotment status gets delayed by a couple of days. If you have applied for the IPO, you can check your allotment status online.
You can either check your allotment status on the BSE website or the IPO registrar, Link Intime India Private Limited. Here are the steps.
Checking the allotment status of RR Kabel Ltd on BSE website
This is a facility available to all mainboard IPOs, irrespective of who the registrar to the issue is. You can still access the allotment status on the website of BSE India as under. Visit the BSE link for the IPO allotment by clicking on the link below.
Once you reach the page, here are the steps to follow.
- Under Issue Type – Select Equity Option
- Under Issue Name – Select RR Kabel Ltd from the drop down box
- Enter the Application Number exactly as in the acknowledgement slip
- Enter the PAN (10-digit alphanumeric) number
- Once this is done, you need to click on the Captcha to verify that you are not a robot
- Finally click on the Search Button
In the past, while checking the allotment status on the BSE website, it was necessary to input the PAN number and the application Number. However, now BSE has modified the requirements and it is sufficient if you enter any one of these parameters.
The allotment status will be displayed on the screen in front of you informing about the number of shares of RR Kabel Ltd allotted into your demat account. It is always advisable to save a screenshot of the allotment status output for subsequently verifying with the demat account credits.
Checking the allotment status of RR Kabel Ltd on Link Intime India Private Limited (Registrar to the IPO)
Here are the steps to follow. Visit the Link Intime registrar website for IPO status by clicking on the link below:
This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select RR Kabel Ltd from the drop-down box. In the case of RR Kabel Ltd, data access will be allowed late on 21st of September 2023 or by middle of 22nd of September 2023.
There are 4 options available to you and you will find these 4 options on the above access page itself. You can either access the allotment status based on PAN or Application Number or DPID / Client ID combination or based on the combination of the bank account / IFSC code used to apply for the IPO. You can select any one of the options that is preferred and provide the details accordingly.
- If you opt for the PAN Number access, then enter the 10 character income tax permanent account number (PAN). This is an alphanumeric code available either on your PAN card or on top of your income tax return.
- The second option is to use the Application Number that you used while making an application for the IPO. The application number is available on the acknowledgement provided to you and you can use that as one of the options to access allotment status.
- The third option is to use the DPID-Client ID combination. Remember that here you have to enter the DP id and the demat client id together as one single string. This DPID / Client ID combination is a numeric figure for CDSL demat accounts while it is an alphanumeric string for NSDL demat accounts. This combination of DP ID / Client ID of your demat account will be available in your demat statement or you can also get it online from your online trading account or trading app downloaded on the smart phone.
- The fourth option is to query based on the combination of your bank account number and IFSC number and irrespective of how many bank accounts you have, only use the bank account used for this particular IPO application. Once you click on this option, you find two boxes. First, enter your bank account number as it is. Secondly, enter the 11-character IFSC code, which is available on your cheque book. The first 4 characters of the IFSC code are alphabets and the last 7 characters are numeric. IFSC is an abbreviation for Indian Financial System Code and is unique to each account.
- Finally, click on the Search button
The IPO status with number of shares of RR Kabel Ltd allotted will be displayed on the screen in front of you. You can take a screenshot of the output page for your records.
Importance of oversubscription in allotment chances
An important consideration in the overall chances of allotment and the final basis of allotment is the extent of oversubscription. Here you need to understand two things in statistical terms. Firstly, let us look at what is the number of shares allocated as permissible quota in the IPO across categories.
|Anchor Investor Shares Offered||56,58,201 shares (29.82%)|
|QIB Shares Offered||37,72,137 shares (19.88%)|
|NII (HNI) Shares Offered||28,29,102 shares (14.91%)|
|Retail Shares Offered||66,01,237 shares (34.79%)|
|Employee Shares Offered||1,15,261 shares (0.61%)|
|Total Shares Offered||1,89,75,938 shares (100%)|
However, knowing the allocation available is just one part of the story. You also need to understand to what extent each of these segments of the IPO are oversubscribed as that is what will determine the chances of allotment. Check the table below.
|Qualified Institutional Buyers (QIB)||52.26 Times|
|S (HNI) ₹2 lakhs to ₹10 lakhs||8.33|
|B (HNI) Above ₹10 lakhs||15.68|
|Non Institutional Investors (NII)||13.23 Times|
|Retail Individuals||2.13 Times|
The good news in the table above is that the retail portion is subscribed just about 2.13 times so if you have applied in that quota, you stand a good chance of allotment.
Business model of RR Kabel Ltd
RR Kabel Ltd Incorporated in the year 1995, and can be classified predominantly as an FMEG (fast moving electrical goods) company. The company makes consumer electrical products for use in residential, commercial, industrial, and infrastructure applications. In terms of its product verticals, RR Kabel Ltd operates in 2 broad verticals. The first vertical is the wires and cables business which includes home wires, industrial wires, and special cables. These are directly supplied to OEM users. The second, and more predominant business vertical of RR Kabel Ltd is the FMEG vertical or the fast moving electrical goods segment, comprising of fans, lighting products, switches, and other electrical appliances.
Currently, RR Kabel Ltd manufactures and markets wires and cable products under the brand name RR Kabel while the FMEG products are sold under the brand name of Luminous Fans and Lights to distinguish the FMEG segment from the cables segment. In 2020, RR Kabel Ltd had acquired Arraystorm Lighting which specializes in light emitting diode (LED) lights and related hardware business. This automatically gave RR Kabel Ltd the access to the fast growing LED lights franchise. This will help RR Kabel Ltd to expand its offerings to cover offices, industrial and warehouse spaces etc.
RR Kabel has 2 manufacturing units located at Waghodia, Gujarat and at Silvassa, apart from 3 integrated manufacturing facilities at Roorkee, Bengaluru, and Gagret for FMEG products. RR Kabel has a strong domestic market and also fair share of the global market. It derives 71% of its revenues from the wires and cables segment with only the balance from the FMEG segment. The issue of RR Kabel Ltd will be lead managed by Axis Capital, Citigroup Global Markets, HSBC Securities and JM Financial. They will act as the book running lead managers (BRLM) to the issue. Link Intime India Private Ltd will be the registrar to the issue.
DisclaimerInvestment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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