RR Kabel IPO lists at 14.01% premium, closes flat

RR Kabel Ltd had a moderate to robust listing on 20th September 2023, listing at a premium of 14.01%, and rallying very marginally to close a tad above the listing price. The closing price on 20th September 2023 was still above the issue price of the IPO and also the listing price of the day, albeit much lower than the high price of the day. That can be attributed to the pressure on the overall stock markets on 20th September 2023. What is more interesting is the fact that the listing performance by RR Kabel Ltd was despite a lot of weakness in the stock market performance overall on 20th September 2023. For the day, the Nifty closed 232 points lower while the Sensex closed a full 796 points lower. The weakness in the Nifty and the Sensex persisted through the day and the markets almost closed at the lowest point of the day. In that backdrop, one must say that the performance of RR Kabel Ltd on listing day was relatively satisfactory.

While the stock opened at a modest premium on the NSE of just about 14.01%, the pressure on the stock market overall, acted as a kind of lid on the stock price performance for RR Kabel Ltd. The stock had seen relatively strong subscription in the IPO. The subscription was 18.69X  overall and QIB subscription at 52.26X. Hence the listing was expected to be relatively strong. However, while the listing was in the positive, the performance strength got impacted post listing dure to the pressure on the markets overall. However, it must be said that despite the sharp fall in the Nifty and the Sensex on 20th September 2023, the stock of RR Kabel Ltd at least managed to close marginally above the listing price and sustain the premium of the morning. Here is the RR Kabel Ltd listing story on 20th September 2023.

IPO subscription and pricing details

The IPO price was fixed at the upper end of the band at ₹1,035 which was anyways along expected lines considering the relatively strong 18.69X overall subscription and the 52.26X QIB subscription in the IPO. In addition, the retail portion had got subscribed 2.13X in the IPO while the HNI / NII portion also got a healthy subscription of 13.23X. The price band for the IPO was ₹983 to ₹1035. On 20th September 2023, the stock of RR Kabel Ltd listed on the NSE at a price of ₹1,180, a rather modest premium of 14.01% over the IPO issue price of ₹1,035 per share. On the BSE also, the stock listed at ₹1,179, a premium of 13.91% over the IPO issue price of ₹1,035 per share.

How the stock of RR Kabel Ltd closed on both exchanges

On the NSE, RR Kabel Ltd closed on 20th September 2023 at a price of ₹1,186.05. That is a first day closing premium of 17.98% on the issue price of ₹1,035 and also a premium of 0.51% on the listing price of ₹1,180. In fact, the listing price turned out to be the mid-point of the day as the stock oscillated quite wildly during the day amidst volatility in the market sentiments overall. On the BSE, the stock closed at ₹1,196.65. That represents a first day closing premium of 15.62% above the IPO issue price of ₹1,035 per share and also a premium of 1.50% above the listing price of ₹1,179 per share on the BSE. On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 at a marginal premium to the listing price. On the NSE, this premium was just about 0.51% while on the BSE, this premium was 1.50% at the close of trading on 20th September 2023. The high price of the day was well above the closing price on both the exchanges, which could be attributed to some late profit taking in the counter. Clearly, the very weak performance of the Nifty and the Sensex also had its impact on the stock of RR Kabel Ltd on 20th September 2023 allowing the stock to close the day above the listing price for the day, but well short of the high price. One can say that the listing performance could have been much better, had it not been for the virtual carnage on the indices in the overall markets.

Price volume story on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 20th September 2023. On Day-1 of listing, RR Kabel Ltd touched a high of ₹1,212.70 on the NSE and a low of ₹1,136.80. The premium to the listing price sustained through most part of the day, although the stock did remain very volatile as can be seen from the price range of the stock. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the stock opening price and the stock closing price turned out to be more like mid-points in trade as the stock gyrated more than ₹80 during trade on 20th September 2023. The post-listing performance of the IPO stock was positive despite very weak markets with the Nifty falling sharply during the day. On Day-1 of listing, the RR Kabel Ltd stock traded a total of 150.23 lakh shares on NSE amounting to value of ₹1,773.28 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the sellers. The stock closed the day with pending sell orders of 78,527 shares on the NSE.

Price volume story on the BSE

Let us now turn to how the stock of RR Kabel Ltd traversed on the Bombay Stock Exchange (BSE) on 20th September 2023. On Day-1 of listing, RR Kabel Ltd touched a high of ₹1,212.80 on the BSE and a low of ₹1,137.60. The premium to the listing price sustained through most part of the day, although the stock did remain very volatile as can be seen from the price range of the stock. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the stock opening price and the stock closing price turned out to be more like mid-points in trade as the stock gyrated more than ₹80 during trade on 20th September 2023. The post-listing performance of the IPO stock was positive despite very weak markets with the Sensex falling sharply during the day. On Day-1 of listing, the RR Kabel Ltd stock traded a total of 8.85 lakh shares on BSE amounting to value of ₹104.32 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the sellers. The stock closed the day with pending sell orders on the BSE too.

Market capitalization, free float, and delivery volumes

While the volumes on the BSE were not as much as on the NSE, the trend was largely similar post listing on 20th September 2023. The order book through the day showed a lot of weakness and that almost sustained till the close of the trading session on the first day of trading. What matters for the stock of RR Kabel Ltd at the end of trading on the listing day is that the stock closed in the positive after a moderately positive listing, despite the Nifty and the Sensex taking a knock on 20th September 2023. On the NSE, out of the total 150.23 lakh shares traded during the first day of trading, the deliverable quantity represented 86.16 lakh shares or a deliverable percentage of 57.35% on the NSE, which is well above the average deliverable quantity we get to see on list day on NSE. That shows a lot of delivery action in the counter. Even on the BSE, out of the total 8.85 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 4.52 lakh shares representing total deliverable percentage of 51.05%, well below the delivery action on the NSE. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing.

At the close of Day-1 of listing, RR Kabel Ltd had a market capitalization of ₹13,500.46 crore with free-float market cap of ₹1,620.05 crore. RR Kabel Ltd has issued capital of 11.28 crore shares with a par value of ₹5 per share.