TPG Asia Is Likely To Sell Its Entire 5% stake In RR Kabel

RR Kabel Ltd, an important part of the RR Global Group, is a major player in India’s consumer electrical industry, excelling in wires, cables, and fast-moving electrical goods (FMEG). Over its 20-year history, the company has expanded across multiple verticals including switches, fans, lighting, switchgear, and appliances, offering a comprehensive product range for residential, commercial, industrial, and infrastructure purposes. The company is one of the fastest-growing companies in the wires and cables segment.

TPG Asia is Likely to Sell Entire Stake

TPG Asia in 2018, had bought a 21% stake in RR Kabel, a Private equity firm that bought the shares at a price of Rs.270.08 per share, RR Kabel launched its IPO last year in 2023. TPG India now holds around 5% stake in RR Kabel and the US-based Private Equity firm is likely to sell this entire stake worth around Rs.1000 crores through block deals. The stock of RR Kabel currently trades at Rs.1,744 a piece.

RR Kabel’s Recent Q4 Performance

In the January-March quarter (Q4FY24), RR Kabel saw a 15.7 percent year-on-year (YoY) increase in revenue, reaching Rs 1,754 crore, and a 20.6 percent YoY rise in net profit, totaling Rs 78 crore.

Commenting on the Q4 results, Shreegopal Kabra, Managing Director of RR Kabel, proudly highlighted the company’s reported revenue and PAT for FY24. He attributed this success to robust volume growth and the company’s strong market position, stating, “As the fourth largest player in the wire and cable industry by value, our significant presence in the housing wire segment and our focus on infrastructure development have been key to our achievements.”

Conclusion

RR Kabel’s IPO was issued at a price of Rs.1035 a piece, the stock is currently up by 67% from this issued price.The stake sale of the entire 5% by TPG Asia Group at the price of Rs.1757 a piece would be worth around Rs.1000 crores.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.