Polycab India IPO to open on Friday

Good IPOs are back. Leading cable and electric goods manufacturer Polycab India's Initial public offering (IPO) opens on Friday, April 5, 2019. The IPO consists of an offer for sale of up to 1,75,82,000 equity shares and a fresh issue to raise Rs. 400 crore.

IPO is consists of 2,50,91,896 equity shares of face value Rs. 10 each through a 100 per cent book building process. Of these 17,582,000 equity shares are offer for sale (OFS) by selling shareholders

The price band for the issue is Rs. 533 to 538 per share with a minimum bid size of 27 equity shares. The issue is open for subscription from April 5 to 9. The company is offering an employee discount of Rs. 53 per share.

The objective of the OFS is to provide an exit for the selling shareholders and the company will not receive any proceeds of the OFS. The net proceeds of the Fresh Issue will be utilised for scheduled repayment of the company's borrowings and to fund incremental working capital requirements of the company, besides general corporate purposes. The gross proceeds of the fresh issue would be Rs. 400 crore, of which Rs. 80 crore will be used for reducing debt and Rs. 240 crore will be utilised to fund the incremental working capital requirements of the company.

Polycab India Limited is a market leader in wires and cables market. The company is engaged in the manufacture and sales of a range of wires and cables and fast moving electrical goods (FMEG). It wires and cables portfolio of products includes power cables, instrumentation cables, control cables, solar cables, building wires, flexible/single multi-core cables, communication cables and other specialty cables and green wires. The company has also ventured into engineering, procurement and construction (EPC) business for execution of power distribution and rural electrification projects. Its FMEG segment includes switches and switchgears, electric fans, LED lighting and luminaires and solar products. Polycab has 24 manufacturing plants and two joint ventures with Techno Electromech and Trafigura located in Uttarakhand, Gujarat, Maharashtra and Daman and Diu.

The company's listed peer include Apar Industries, Finolex Cables, Havells India, Bajaj Electricals, Crompton Greaves Consumer Electricals, KEI Industries and V-Guard Industries.