Impressive debut: Shares of this company list at 14 per cent premium to IPO price; do you own it?

It achieved the distinction of becoming the first company to make its stock market debut within just two days of the issue closing.

RR Kabel Ltd, a consumer electrical products company, had an impressive debut on the bourses on September 20, with shares opening at a robust 14 per cent premium over the issue price. The stock commenced trading at Rs 1,179 on the BSE, significantly higher than the issue price of Rs 1,035. During intraday trading, the shares soared more than 17 per cent, reaching an intraday high of Rs 1,212.80 per share on the BSE.

The company's product offerings are categorized into two primary segments: wires and cables, encompassing house wires, industrial wires, power cables and special cables; and fast-moving electrical goods (FMEG), which include fans, lighting, switches, and appliances.

In addition to its presence on well-known e-commerce platforms, the company boasts an expansive nationwide distribution network and holds the position of being the fifth-largest player in India's wires and cables market. The company's products hold noteworthy international product certifications, and it boasts one of the highest counts of such certifications among its peers.

The company derives the majority of its revenue from the Fast-Moving Electrical Goods (FMEG) segment, holding the largest share among its peer companies. While the company has showcased consistent growth in its sales and operating profit, it encountered margin pressures in FY23. As of March 31, 2023, it commands approximately 5 per cent market share by value. Over the past three years, the company has reported an average 15 per cent return on equity.

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