Polycab IPO Analysis, IPO Review, Dates, Price Bands, Market Lot Details
Polycab IPO is all set to open on 5 April 2019. The company is a manufacturer and seller of wires and fast-moving electrical goods.
The company is offering nearly 2.5 crore equity shares at a price band of Rs 533-538. Some of its promoters, including the World Bank’s lending arm International Finance Corporation, will sell the stake in the IPO. It will be a combination of offer-for-sale and fresh issue.
Besides wires and cables, the company also manufactures FMEG Such as electric fans, LED and luminaries, switches, and switchgear, solar products and conduits and accessories.
The company came into existence in the year 1996, January 10 at Mumbai as a private limited company under the companies act, 1956
The Polycab company sells its product under the brand name “Polycab”.
The company is one of the largest manufacturers of wires in the industry.
The other products consist of welding cables, round cables, railway signaling cables, specialty cables, and green wires
The other business includes electric fans, LED lighting and luminaires, switches and switchgear, solar products and conduits and accessories.
About Polycab India LTD
The company came into existence in the year 1996. The company is indulged in manufacturing and selling of wires and fast moving electrical goods under the “Polycab’ India.
The polycab manufacture and sell a diverse range of wires and cables and our key products in the wires and cables segment are 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.
In the year 2009, the company diversified into the engineering, procurement, and construction (“EPC”) business, which includes the design, engineering, supply, execution, and commissioning of power distribution and rural electrification projects.
In 2014, we diversified into the FMEG segment and our key FMEG are electric fans, LED lighting and luminaires, switches and switchgear, solar products and conduits and accessories.
The company has 25 manufacturing facility.
The company was later on converted into a private limited company as ‘Polycab Industries Private Limited’ under the Companies Act, 1956. Polycab Industries Private Limited was subsequently amalgamated with the Company in 2011.
What is IPO?
IPO is an acronym of the initial public offering. Prior to, an IPO the company is considered to be private, with a relatively small number of shareholder made up primarily for early investors such as founder, their families, and friends.
The procedure of offering shares in a private corporation to the public for the first time it is called initial public offerings.
Polycab India Limited IPO – Issue Details:
| Issuer | Polycab India Limited (View Report) | |
| Issue Type | 100% Book Built Issue IPO | |
| Issue Period | Issue Opens: Apr 05, 2019 | |
| Issue Closes: Apr 09, 2019 | ||
| Price Brand | Rs.533* – Rs.538^ per Equity Share | |
| Issue Size | Rs.1,336.47* Crores – Rs.1,345.26^ Crores | |
| Face Value | Rs.10 per Equity Share | |
| Bit Lot | 27 Equity Shares and in multiples thereof | |
| Maximum Bid amount for Retail | Rs. 2 Lakhs | |
| QIB | 50% of the issue size (1,24,58,447* – 1,24,23,532^ Equity Shares) | |
| NIB | 15% of the issue size (37,37,535* – 37,27,061^ Equity Shares) | |
| Retail Individual Bidders | 35% of the issue size (87,20,914* – 86,96,474^ Equity Shares) | |
| Employee Reservation | 1,75,000 Equity Shares (Rs.8.40* Crs – Rs.8.49^ Crs) | |
| Employee Discount | Rs.53/- per Equity Share | |
| Listing | NSE & BSE | |
| Registrar | Karvy Fintech Private Limited | |
| Book Running Lead Managers | IIFL Holdings, Yes Securities | |
Polycab IPO Review
Polycab India IPO Review & Ratings
| IPO Ratings & Review | |
| Criteria | Ratings |
| Industry Sentiments | 8.5/10 |
| Industry Ranking | 7.8/10 |
| Company Background | 7.9/10 |
| Company Reputation | 7.9/10 |
| Competitive Edge | 7.7/10 |
| Financial Statements | 7.8/10 |
| Popularity Index | 8.4/10 |
| Promoters Reputation | 7.7/10 |
| Retail Appetite | 7.9/10 |
| Top Brokers Review | 7.9/10 |
| Overall Ratings | 8.1/10 |
| Star Ratings | ★★★★☆ |
- Apply for Listing Gain & Long Term Gain
Source:- BloombergQuint
Polycab India IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
Polycab IPO Brokerage Firm Reviews:
Capital Market: Subscribe
Polycab IPO Dates & Price Band
- IPO Open: 05-April-2019
- IPO Close: 09-April-2019
- IPO Size: Approx ₹1346 Crore
- Face Value: ₹10 Per Equity Share
- Price Band: ₹533 to ₹538 Per Share
- Listing on: BSE & NSE
- Retail Portion: 35%
- Equity: 17,582,000 Shares
Polycab IPO Market Lot
- Shares: Apply for 27 Shares (Minimum Lot Size)
- Amount: ₹14,526
Polycab IPO Allotment & Listing
- The basis of Allotment: 12-April-2019
- Refunds: 15-April-2019
- Credit to demat accounts: 16-April-2019
- Listing: 18-April-2019
Polycab India IPO Dates
The opening and the closing date of Polycab India IPO is Apr 5, 2019 – Apr 9, 2019.
Polycab India IPO Subscription
| Day / Date | QIB | NII | RII | Employee | Total Subscription |
| 1st Day – Apr 5 | 1.96x | 0.08x | 0.27x | 0.46x | 0.71x |
| 2nd Day – Apr 8 | 1.98x | 0.14x | 0.59x | 0.87x | 0.89x |
| 3rd Day – Apr 9 | |||||
| Shares Offered or Net Issue | 5,004,328 | 3,737,535 | 8,720,914 | 175,000 | 17,637,777 |
The shares subscribed by the public will be updated here.
Polycab India IPO Allotment Status
Here, you can refer the table to know the allotment status of this IPO.
| BThe basis of Allotment Finalization | 12-Apr-19 |
| Refunds Initiation | 15-Apr-19 |
| Credit of Shares to Demat Account | 15-Apr-19 |
| Share Listing Date | 1-Apr-19 |
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What are Financial Highlights of Polycab?
The company’s net worth as on 31s of Dec. 31, 2018, was Rs 2,723 crore, translating to a book value of Rs 183 Per share after the issue of new share.
the company revenue augment at an annualized rate of 11.1 percent
The company’s net profit grew 42.7 percent in the same period. For the first nine months of the financial year 2018-19, the company reported revenue and a net profit of Rs 5,507 crore and Rs 358 crore, respectively.
The company had a debt of close to Rs 620 crore as of Dec. 31, which would reduce to Rs 540 crore once the company uses part of the IPO proceeds to repay debt.
Polycab Financial
| ₹ in Crore | |||||
| Revenue | Expense | PAT | |||
| 2015 | – | – | – | ||
| 2016 | 5747 | 5482 | 183 | ||
| 2017 | 6122 | 5761 | 232 | ||
| 2018 | 6986 | 6410 | 373 | ||
| 2019 (Q1) | 1703 | 1582 | 75 | ||
How to Apply Polycab IPO?
If you have a demat account, most banks offer the online IPO application. You can also contact the broker to apply in Polycab IPO.
Most banks including the ICICI bank, Axis and Kotak bank allow the customer to apply in IPO using the demat account.
Who are the Polycab company promoters?
Below I have listed the name of the polycab company promoters
- Inder T Jaisinghani
- Ajay Jaisinghani
- Ramesh T Jaisinghan
Polycab IPO Lead Managers
- Axis Capital Ltd
- Citigroup Global Markets India Pvt Ltd
- Edelweiss Financial Services Ltd
- IIFL Holdings Ltd
- Kotak Mahindra Capital Company Ltd
- Yes Securities (India) Ltd
Polycab IPO Registrar:
Karvy Computershare Private Limited
Karvy Selenium, Tower B
Plot number 31 & 32 Gachibowli
Financial District
Nanakramguda
Hyderabad 500 032
Tel: +91 40 6716 2222
Investor grievance e-mail: polycab.ipo@karvy.com
Website: https://karisma.karvy.com
Note: Check Polycab IPO allotment status on Karvy website allotment url.
Object of the Polycab IPO issue
- Schedule repayment of all the portion of all the borrowing availed in the company
- To raise funds for the working capital requirements of the company
- General Corporate Purpose
Polycab India IPO Grey Market Premium
The Polycab India IPO Grey Market Premium price is Rs 75-80, the Kostak rate is Rs 600 and the Subject to Sauda is X.
Polycab Contact Details
Company Address:
Polycab India Limited
E-554, Greater Kailash – II
New Delhi 110 048
Tel: +91 11 2922 8574
Fax: +91 11 4105 4838
E-mail: investor.relations@polycab.com
Website: www.polycab.com
The IPO price and bands dates will be added as it will be officially announced.
Polycab India IPO Lead Managers
| Lead Managers |
|
Things to Remember about the Polycab IPO
- During the session on Monday, the second day of issue, the Polycab India IPO has touched around 1.70 crore bids, marking a subscription of 96.18 percent, as per the data available with the NSE till 12:15 pm.
- The Polycab IPO received a total of 52.94 lakh bids at the cut-off price at the time. Subscription at cut-off price means that investors consent to purchase the shares at the offer price as determined the end of the book-building process.
- A price band of Rs. 533-538 piece has been set for the Polycab IPO.
4. Shares under the Polycab IPO can be subscribed in the lots of 27 units. This means that investors can subscribe to the IPO at a minimum of Rs. 14,391-14,526.
5. Mumbai-based Polycab India is engaged in the business of manufacturing and selling of wires, cables, and other electrical goods.
Meanwhile, state-owned Rail Vikas Nigam’s IPO to raise Rs. 482 crore was subscribed 1.8 times last week.
Competitive Strengths of Polycab India Limited
Why you should apply for Polycab IPO?
- The company is one of the leading Market leaders in wires and cables in India
- Powerful distribution network
- Strong brand in the electricity industry
- Manufacturing facilities with a high degree of backward integration
- Skilled and experienced management team
Business strategies of Polycab India Limited
- Enhance and strengthen the leadership position in wires and cables
- Continue to expand their FMEG business
- Expand distribution reach
- Continue to invest in technology to improve operational efficiencies, customer satisfaction and sales
- Strengthen brand recognition
Other Details:
- Statutory Auditor – M/s. S R B C & CO LLP, Chartered Accountants
- Peer Review Auditor – NA
- Bankers to the Company – State Bank of India, Bank of India, Industrial Development Bank of India, Punjab National Bank, Standard Chartered Bank, Citibank N.A.
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