Ram Ratna Wires stock gains 5% on approval for 13.64 lakh shares sale in RR Kabel via IPO

Ram Ratna Wires stock gains

The board of directors of Ram Ratna Wires, a leading maker of high-quality winding wires, gave the company permission on Wednesday to sell over 13.64 lakh equity shares in R R Kabel through an initial public offering (IPO). On Dalal Street, Ram Ratna’s stock went up by more than 6% during the day.

In a regulatory filing, Ram Ratna said that the board of directors had discussed and agreed to the plan to sell its equity investment in R R Kabel by offering up to 13,64,480 equity shares as part of R R Kabel’s planned initial public offering (IPO).

Each of the shares of stock that are for sale has a face value of 5.

There are two ways to do an IPO: a fresh issue and offer for sale, or just a sale (OFS). The fresh issue is the release of new equity shares in the company for sale to investors like qualified institutional buyers (QIBs), non-institutional investors (NIIs), and retail individual investors (RIIs).

In an IPO, OFS is the process that promoters, shareholders, and investors use to sell their shares in a company.

So, Ram Ratna will sell his share of R R Kabel through an OFS in the IPO.

The sale of the stake is subject to the processes, requirements, and conditions of the laws that apply, at a price per equity share that may be set and decided during the IPO process.

At the time of writing, one share of Ram Ratna was worth 201.95 on the BSE. This was an increase of 5.05%. With an intraday high of 204.65 per share, the stock has gone up by at least 6.4%.

At the current market price, its market capitalization is more than 888 crore.

In December of last year, MD and Group President Shreegopal Kabra told PTI that RR Kabel wants to start its IPO in the third quarter of 2023-2024. He also said that they plan to have an initial public offering (IPO) in October or November 2024, depending on how the market is doing. They plan to file preliminary papers with Sebi in the first half of May 2023.

Ram Ratna is the biggest company that makes and sells good winding wires for electrical equipment. The company makes many different kinds of equipment, such as transformers, cables, transmission lines, switchgear, capacitors, and so on. It is part of RR Global, one of the biggest companies in the electrical and copper industries.

Source: Team CurrencyVeda