Stock market today: Shares of RR Kabel were launched at a better-than-anticipated premium of 14% over the issue price of $983-2,035 per equity share. The share price of RR Kabel began trading on the BSE at $1,179 per unit, while it listed on the NSE at $1,180 per unit.
Given that both stock market and grey market analysts had projected an allottees’ listing premium of between 8% and 10%, this listing exceeds market expectations. Following its initial public offering at a 14 percent premium, the share price of RR Kabel increased further, reaching an intraday high of 1,198 on the NSE and 1,198.05 on the BSE. The stock, however, quickly saw profit booking, and it dropped to 1,143.10 on the BSE and 1,136.80 on the NSE.
Market analysts claim that RR Kabel Ltd. is valued more than its competitors and has a higher PE multiple since its competitors’ margins are lower than RR Kabel’s. Because other stocks in the sector are anticipated to perform better in the coming sessions than RR Kabel shares, one should book listing profits and quit.
The Future Of RR Kabel’s Stock Price
Arun Kejriwal, the founder of Kejriwal Research and Investment Services, advised RR Kabel shareholders to book list profit since “+ that means 90% of the net profit will go to the hands of promoters offloading their shareholding.” The company’s financials won’t be significantly impacted by the public offering, thus it is anticipated that its valuation will stay greater than that of its competitors.
In agreement with Arun Kejriwal, Prashanth Tapse, Senior Vice President of research at Mehta Equities, stated that it was evident given the state of the market that the RR Kabel IPO was announced at higher values. However, after listing at a higher premium than anticipated, investors in RR Kabel are recommended to take a profit and leave the stock because peers like KEI and Polycab are predicted to perform better in the coming sessions than RR Kabel.
Prashanth Tapse of Mehta Equities commented on individuals who missed out on RR Kabel shares during the allotment process, saying, “Fresh investment is not advised at current levels. Instead than RR Kabel shares, one should consider alternative public offerings or other possibilities in the same industry.
Details About The RR Kabel IPO
The RR Kabel IPO sought to raise $1,964.01 crore from the IPO at the top of the pricing range. The initial public offering (IPO) included a fresh issue of equity shares worth 180 crore rupees and an offer for sale (OFS) of 1.72 crore equity shares by the promoters and investors for 1,784 crore rupees. TPG Asia VII SF Pte Ltd sold 1.29 crore equity shares in the OFS, while public stakeholder Ram Ratna Wires sold all 13.64 lakh shares it owned.
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