Polycab IPO witnesses 52 times subscription on last day of share sale
- While institutional portion of the Polycab IPO was subscribed 93 times, HNI and retail portions saw subscription of 110.7 and 4.4 times, respectively
- Shares in the Polycab IPO were issued in a price band of ₹533-538 apiece, valuing the wires maker at close to ₹8,000 crore
Mumbai: The initial public offering (IPO) of Polycab India Ltd, the International Finance Corp.-backed wires, cable and consumer electrical goods manufacturer, was subscribed 52 times on the final day of the share sale.
Polycab had launched its IPO on 5 April to raise ₹1,346 crore, with shares priced in the range of ₹533-538 apiece. The IPO values the company at close to ₹8,000 crore.
As of 4pm, data from stock exchanges showed that the institutional portion of the Polycab IPO was subscribed 93 times, while the portion reserved for high networth individuals and retail investors were subscribed 110.7 and 4.4 times respectively.
The Polycab IPO is now the most subscribed so far this year. In January, hotel operator Chalet Hotels’ initial share sale received subscription interest of 1.57 times of shares on offer, while in March the Embassy Office Parks real estate investment trust (REIT) IPO saw subscription of 2.58 times.
The Polycab IPO is a mix of primary and secondary share sale. The company is raising ₹400 crore of fresh capital from the IPO, which will be used to repay part of the company’s debt and to finance increasing working capital requirements.
Polycab intends to use ₹80 crore to pare debt and ₹240 crore for working capital needs. The rest will go towards general corporate expenses.
Polycab’s promoters and its investor IFC, the World Bank’s private investment arm, are collectively selling 17.58 million shares as part of the IPO.
IFC, which had invested ₹400 crore in Polycab, is selling around one-third of its 15% stake for ₹379.8 crore, at the upper end of the price band.
Polycab manufactures and sells a diverse range of wires and cables, including power cables, control cables, instrumentation cables, solar cables, building wires, flexible cables and communication cables.
In 2009, the company diversified into the engineering, procurement and construction business, which includes design, engineering, supply, execution and commissioning of power distribution, and rural electrification projects. In 2014, it had diversified further to manufacture fast-moving electrical goods, such as fans, LED lighting and luminaires, switches and switchgears, solar products and conduits.
Source: livemint
