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BACKGROUND

Incorporated in 1995, R R Kabel Limited provides consumer electrical products used for residential, commercial, industrial, and infrastructure purposes. It has two broad segments:

a) Wires and cables including house wires, industrial wires, power cables, and special cables; and

b) FMEG including fans, lighting, switches, and appliances

Objects and Details of the Issue:

•Total issue of ~Rs.1964 Cr (at upper price band) consists of fresh issue worth Rs.180 Cr and offer for sale worth Rs.1784 Cr

•The Company proposes to utilise the Net Proceeds from the Fresh Issue towards Repayment or prepayment, in full or in part, of borrowings from banks and financial institutions.

Investment Rationale:

* Consumer Electrical Industry in India to grow at 10% CAGR (FY23-FY27)

* Well-positioned for growth in FMEG segment

* Expanding W&C Product Portfolio

* Extensive domestic and global distribution network

Valuation and Recommendation:-

RR Kabel is the fastest growing consumer electrical company among the peers in India, growing at a CAGR of 31.2 %( FY20-FY23). It is one of the leading players in the W&C industry with approximately 89% of its revenue generated from the W&C segment and now has a fast-growing FMEG segment, post-acquisition of Luminous. This provides for visibility of accelerated growth in coming years. It is being offered at reasonable valuations at 61.8x FY23 earnings, considering the future growth opportunities. We recommend subscribing to the issue from long term perspective.

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SEBI Registration number is INH000001766