Polycab India to acquire remaining 50 per cent stake in Ryker

Wire & cables manufacturer, Polycab India Limited, announced during the weekend that it has signed an agreement with Trafigura Pte Ltd (Singapore) for acquiring the remaining 50 per cent stake in Ryker Base Pvt Ltd. The board of PIL approved the acquisition in its meeting held on May 2, 2020.

As a consequence of this agreement, the existing joint venture between the two stands terminated. Nevertheless, Polycab India Ltd (PIL) had entered into a joint venture (50:50) with multinational commodity trading company-Trafigura to incorporate Ryker in 2016. The incorporation was done with an aim to strengthen backward integration of its operations as well as for improving quality of its key input-copper.

Polycab India decided to acquire the remaining 2,60,10,000 (i.e. balance 50 per cent equity shares) of face value of Rs 10 each from Trafigura, after the latter made a global strategic decision to exit from the value-added manufacturing business in India, where it was a joint-venture partner. Post this agreement, Ryker Base would become a wholly-owned subsidiary of PIL. The purchase consideration of the same is likely to be around US $ 4 million (Rs 30 crore).

At 1.31 pm on Monday, the stock of Polycab India Ltd is trading at Rs 693.00, down by 4.24 per cent against its previous close of Rs 723.70. Its 52-week high is Rs 1,180.00 and its 52-week low is Rs 525.05 on BSE.