R R KABEL LIMITED

R R KABEL LIMITED - IPO DETAILS 

Company Overview 

Established in 1995, R R Kabel Limited is a company that supplies consumer electrical products designed for a wide range of applications, encompassing residential, commercial, industrial, and infrastructure needs. R R Kabel operates within two primary business segments: 1) Wires and Cables: This segment encompasses an array of products such as house wires, industrial wires, power cables, and specialized cables. 2)FMEG (Fast Moving Electrical Goods): Within this segment, R R Kabel offers a variety of products, including fans, lighting solutions, switches, and appliances, catering to the fast-moving consumer electrical goods market. 

In 2020, R R Kabel made a strategic move by acquiring Arraystorm Lighting Private Limited, gaining control of their LED lights and related hardware business, including trademarks and design certificates. This strategic acquisition allowed R R Kabel to broaden its product portfolio, now catering to office, industrial, and warehouse spaces. In 2022, the company continued its growth strategy by acquiring the home electrical business (HEB) of Luminous Power Technologies Private Limited. In this deal, R R Kabel not only obtained the rights to use the Luminous Fans and Lights brand for fan and light products but also secured a limited and exclusive license for an initial four-year period, with an option to renew for an additional three months. This licensing arrangement encompasses access to 61 registered trademarks and a diverse range of lighting and premium fan products, significantly strengthening their FMEG (Fast Moving Electrical Goods) portfolio. 

The company operates from two distinct manufacturing units situated in Waghodia, Gujarat, and Silvassa, Dadra and Nagar Haveli, and Daman and Diu. These facilities primarily focus on the production of wires, cables, and switches. 

Objective of the IPO 

Here are a few quick reasons why R R Kabel Limited going public:  

1. The company has the option to repay or prepay its borrowings in their entirety or partially, which it has obtained from banks and financial institutions. 

2. Allocating funds for overarching corporate needs and objectives. 

Company Financials 

Key Performance Indicator 

Pros 

1. The company manufactures and markets an extensive array of products across diverse categories, creating opportunities for cross-selling. It strategically invests in global trends and possesses the capability to meet the increasing demand for products such as 5G telecom cables, electric vehicle (EV) charging cables, smart fans, and designer lights. 

2. The company boasts an extensive distribution network spanning across India, ensuring nationwide coverage. Additionally, it has established a global distribution network, allowing it to effectively expand its customer reach and tap into international markets.  

3. The company stands out as the fastest-growing consumer electrical company in India when compared to its peers, achieving an impressive Compound Annual Growth Rate (CAGR) of 43.4% during the period from FY21 to FY23. 

4. The company possesses and manages five integrated manufacturing facilities, all of which adhere to both Indian and international standards. These facilities are equipped for precision manufacturing, allowing for the production of its extensive array of products. 

Cons 

1. The company has substantial power and fuel demands, and any disruption in the availability of power sources could lead to elevated production costs and have a negative impact on its operational outcomes and cash flow.  

2. The company is vulnerable to foreign currency exchange rate fluctuations, primarily concerning the import of raw materials, product exports, and foreign currency-based borrowings. These currency fluctuations have the potential to negatively affect the company's operational results, financial stability, and cash flow. 

3. The presence of counterfeit products and instances of trademark infringement pose a potential threat to the company's business and competitive standing. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”