TPG Asia offloaded about 5% stake or just over 56 lakh shares at around Rs 1,701 apiece. This valued the deal at around Rs 958 crore.
Marquee funds, including Edelweiss MF, Tata MF, Goldman Sachs, Citigroup, Morgan Stanley, ICICI Pru MF, Blackstone Aqua, Reliance Nippon Life, and HDFC Standard Life, among others, bought stakes in the transaction.
TPG Asia had acquired around 21% stake in RR Kabel five years before the IPO, which was launched in late 2023. Since then, the PE firm gradually cut stake in the company.
RR Kabel made its debut at the bourses in September last year with a decent premium of around 14% over the issue price. Since then, the stock has returned about 44% to investors.The company is a leading player in the Indian consumer electrical industry comprising wires and cables and fast-moving electrical goods (FMEG), with an operating history of over 20 years in India.The company has posted industry-leading revenue growth of 43% between FY21 and FY23, supported by market share gains in a highly competitive wires and cables space, thanks to its expanding retail presence, launching of new products, and sticky relationship with electricians that play a pivotal role in product sale.In addition, it has been able to penetrate well in the export market and the export revenue doubled in the last two fiscal years.
In FY24, revenue grew by 19% over FY23, driven by expanded distribution, e-commerce growth, successful new product launches, and the brand transition from Luminous to RR Signature.
Meanwhile, gross margins, too, improved in FY24 compared to FY23 due to continuous improvements in product mix and procurement efficiencies.
On Thursday, shares of RR Kabel closed 0.3% lower at Rs 1,718.8 on the NSE.
