Polycab closes at Rs. 655 with 22 per cent premium on Day 1

Strong market conditions pushed the share price of newly listed wires and cable manufacturer Polycab India higher by almost 22 per cent to close at Rs. 654.8 per share on the NSE on debut. This is against an issue price of Rs. 538 per share.

The opening price for the issue stood at Rs. 633 per share. On the traded volume front, 22.43 lakh shares of the company exchanged hands on the BSE. The valuation of the company on closing was Rs. 9,736.31 crore. The Rs. 1,345 crore public issue was subscribed 52 times during its IPO period from April 5 to 9.

The stock trades at forward earnings multiples of 16 times and 13 times for FY20E and FY21E, respectively. At current share price, Polycab trades at a premium to wire and cable peers Finolex and KEI, but at a discount to companies like Havells, V-Guard, etc.

Polycab has 2,800 distributors, over 10,000 retail touch points, a strong manufacturing base and a versatile product range. Polycab enjoys an 18 per cent share of the organised market. The company also offers fans, LED lighting, luminaries, switches, solar products and accessories.