RR Kabel Eyes IPO, 11,000 Cr. Top Line by FY-26
RR Kabel, part of RR Global and a major Indian manufacturer of wires, cables, switchgear and FMEG products, plans to issue an Initial Public Offering (IPO) in October or November of 2023.
RR Kabel has set a target of earning a Rs. 11,000 crore revenue by FY-26, which is about 2.29 times the Rs.4,800 crore revenue that the company clocked in FY-22.
RR Kabel to File Preliminary Papers with SEBI in May 2023
Mr. Shreegopal Kabra, President, RR Global told PTI that the preliminary documents for the IPO will be filed with the Securities and Exchange Board of India (SEBI) once the balance sheet for FY-23 is available in early May 2023.
Mr. Kabra stated that the company plans to roll out its IPO in Q3 of the 2023-24 financial year.
Company Plans 1,000 Cr. CAPEX, Sets Ambitious Financial Targets
Speaking to PTI, Mr. Kabra stated that RR Kabel will be spending Rs. 1,000 crore as CAPEX in the coming three years for expansion. This would entail investment in the areas of switchgear, appliances and Electric Vehicle (EV) charging infrastructure.
“We are now expanding in the eastern region and southern markets of Andhra, Telangana and Karnataka”, said Mr. Kabra.
Speaking of the company’s financial targets, he stated that RR Kabel targets to close the ongoing financial year at a revenue of Rs. 6,000 crore, which is about 25% higher than the company’s top line for the financial year ended 31st March 2022. Further, the company targets to almost double its revenue from FY-23 to FY-26.
Exports Projected to Contribute 30% of RR Kabel’s Wire & Cable Top Line in FY-26
Mr. Kabra stated that exports would contribute about 30% of the wire and cable revenue in FY-26, as against 23% expected during the 2022-23 financial year. This increase in exports is projected on the basis of RR Kabel’s expansion in Europe and other international markets.
FMEG Revenue Expected to Jump by 150% from FY-23 to FY-26
Speaking about the FMEG segment, Mr. Kabra said “Both the brands (Luminous and RR Kabel) are contributing equally in the FMEG business. This year we expect FMEG to contribute around Rs 800 crore. By FY26, it will contribute around Rs 2,000 crore”.
If achieved, it would be a 150% jump in FMEG revenue from FY-23 to FY-26.
The company also expects steady growth in revenue from the Heating, Ventilation, and Air Conditioning (HVAC) segment.
About RR Kabel Pvt. Ltd.: Mumbai-headquartered RR Kabel is a part of RR Global, and is a manufacturer of wires, cables and Fast Moving Electrical Goods (FMEG) in India. The company has manufacturing plants at Silvassa and Waghodia.