Polycab India Limited IPO

Polycab India Limited IPO

What does company do?

Polycab is engaged in the business of manufacturing and selling wires and cables and fast moving electrical goods (FMEG) under the POLYCAB brand.  The company is among the largest manufacturer in the wires and cables industry in India. For Fiscal 2018, it had a market share of approximately 18% of the organized wires and cables industry and approximately 12% of the total wires and cables industry in India, estimated at INR525 billion based on manufacturers realization (Source: CRISIL Research).

Background & History of the Company

The company is a well known name as a manufacturer of wires and cables. According to CRISIL Research, the company had a market share of 18% in the organized wires and cables industry in India. Its product portfolio includes power cables, control cables, instrumentation cables, solar cables, building wires, flexible cables, flexible/single multi core cables, communication cables and others including welding cables, submersible flat and round cables, rubber cables, overhead conductors, railway signaling cables, specialty cables and green wires.

Apart from wires and cables, Polycab manufactures and sells FMEG (Fast Moving Electrical Goods) such as electric fans, LED lighting and luminaires, switches and switchgears, solar products and conduits and accessories. Its vast production footprint includes 24 manufacturing facilities across the country.

Financially, the company’s consolidated revenues grew 14.1% in FY2018 to INR6,985.9 crore while its net income surged 60.6% to INR373.2 crore.

The future strategy of the company are

  • make market presence more prominent in wires and cables sector
  • Enhance and expand FMEG Business
  • Increase reach by expanding the distribution network
  • Improve operational efficiency by investing in technology
  • Increase brand awareness

Object of the Issue

  • Scheduled repayment of all or a portion of certain borrowings – INR100 crore
  • Funding working capital requirements – INR300 crore
  • General corporate purposes
  • Issue expenses

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Competitive Strength of the company are

  • Market leader in the respective segment in india
  • Diverse customer base
  • A range of electrical products
  • Established distribution network

Promoters of the Company

  1. Inder T. Jaisinghani
  2. Ajay T. Jaisinghani
  3. Ramesh T. Jaisinghani
  4. Girdhar T. Jaisinghani

Lead Manager of the Company

  • Axis Bank
  • Citigroup Global
  • Edelweiss Capital
  • IIFL Holdings
  • Kotak Mahindra Capital
  • Yes Bank Ltd.

Registrar of the Company

Karvy Computershare Private Limited

Company Financial Performance (in INR crore)

 

 

 

 

 

 

 

IPO Issue Details

  • Offer For Sale : 24,886,823 shares
  • Issue Size : 1342 Cr.
  • Minimum Order : 27 shares
  • Issue Type : Book Build IPO
  • Issue Price : ₹ 533-538 Per Equity Share
  • Face Value : ₹ 10 Per Equity Share
  • Minimum investment : Rs 14,526
  • Retail Allocation : 35%

Allotment Process 

You can contact your share broker and ask them for your allotment.

Listing Performance

  • Finalisation of Basis of Allotment : 12 Apr 2019
  • Initiation of refunds :  15 Apr 2019
  • Transfer of shares to demat accounts : 16 Apr 2019
  • Listing Date : 16 Apr 2019

Valuations

  • Earnings Per Share (EPS) : INR26.22
  • Price/Earnings (PE ratio) : 20.33 – 20.52
  • Return on Net Worth (RONW) : 15.76%
  • Net Asset Value (NAV) : INR166.37 per share

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