Polycab India IPO – Review, Allotment, Live Subscription, GMP & DRHP

Polycab India Limited is engaged in the business of manufacturing and selling wires and cables and fast moving electrical goods (“FMEG”) under the “POLYCAB” brand. Let’s have a detailed review of the company and analytics of the Polycab India IPO release date, IPO offer price, subscription, Polycab India IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.


Polycab India IPO Review & Ratings

IPO Ratings & Review
CriteriaRatings
Industry Sentiments8.5/10
Industry Ranking7.8/10
Company Background7.9/10
Company Reputation7.9/10
Competitive Edge7.7/10
Financial Statements7.8/10
Popularity Index8.4/10
Promoters Reputation7.7/10
Retail Appetite7.9/10
Top Brokers Review7.9/10
Overall Ratings8.1/10
Star Ratings★★★★☆

Summary of Polycab India IPO

Polycab India IPOPolycab India Limited is e are engaged in the business of manufacturing and selling wires and cables and fast moving electrical goods (“FMEG”) under the “POLYCAB” brand. They are the largest manufacturer in the wires and cables industry in India, in terms of revenue from the wires and cables segment and provide one of the most extensive range of wires and cables in India. 

From FY 2015-16 to FY 2017-2018, as per the Restated Financial Statements:

  • The revenue from operations has increased at a CAGR of 10.08% from Rs. 57,142.41 million in Fiscal 2016 to Rs. 69,239.17 million in Fiscal 2018, and the EBITDA has increased at a CAGR of 23.80% from Rs. 5, 238.78 million in Fiscal 2016 to Rs. 8,029.59 million in Fiscal 2018.
  • The net asset value per Equity Share was Rs. 70.64 and Rs. 69.80 as of June 30, 2018 and March 31, 2018, respectively, as per the Restated Standalone Financial Statements and Rs. 77.14 and Rs. 76.19 as of June 30, 2018 and March 31, 2018, respectively, as per the Restated Consolidated Financial Statements.
  • The net asset value per Equity Share as of June 30, 2018, as per the Restated Ind AS Consolidated Summary Statement of Assets and Liabilities and Restated Unconsolidated Summary Statement of Assets and Liabilities included in this Draft Red Herring Prospectus is Rs. 171.68 per Equity Share and Rs. 171.94 per Equity Share, respectively.
  • Profit after Tax for FY 2017-18 has been increased to Rs. 3706.36 millions from Rs. 2321.03 millions representing increase by 59.68 % from FY 2016-2017. Profit after Tax has increased due to comparative increase in revenue than expenses. 

The Promoters of this company are Inder T. Jaisinghani, Ajay T. Jaisinghani, Ramesh T. Jaisinghani and Girdhari T. JaisinghaniThe lead manager to the issue is Kotak Mahindra Capital Company Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited, Edelweiss Financial Services Limited, IIFL Holdings Limited,YES Securities (India) Limited and the Registrar to this issue is Karvy Computershare Private Limited.



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 / DateQIBNIIRIIEmployeeTotal Subscription
1st Day – Apr 51.96x0.08x0.27x0.46x0.71x
2nd Day – Apr 83.60x0.70x1.51x1.77x1.94x
3rd Day – Apr 992.44x110.42x4.50x3.19x51.88x
Shares Offered or Net Issue5,004,3283,737,5358,720,914175,00017,637,777

Click below link for checking Live Subscription.


Polycab India IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Basis of Allotment Finalization12-Apr-19
Refunds Initiation15-Apr-19
Credit of Shares to Demat Account15-Apr-19
Share Listing Date1-Apr-19

Polycab India IPO Price Band

The face value of each share is Rs 10, but the price band of the IPO is Rs 533 – Rs 538.


Polycab India IPO Equity Share Offering

Initial public offering of up to 17,582,000 Equity Shares for cash at price of Rs. [●] per Equity Share (including a premium of Rs. [●] per Equity Share) aggregating up to Rs. [●] million comprising of [●] Equity Shares aggregating up to Rs. 5,000 million through Fresh Issue by the Company and an Offer for Sale of up to 24,886,823 equity shares by the Selling Shareholders aggregating up to Rs. [●] million.

Polycab India IPO Promoter Holdings:

  • Pre Issue Share Holding is around 78.94%
  • Post Issue Share Holding is around X

Polycab India Limited – Company Overview

Polycab India Limited is e are engaged in the business of manufacturing and selling wires and cables and fast moving electrical goods (“FMEG”) under the “POLYCAB” brand. They are the largest manufacturer in the wires and cables industry in India, in terms of revenue from the wires and cables segment and provide one of the most extensive range of wires and cables in India.

Polycab India manufacture and sell a diverse range of wires and cables and their 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 2009, they 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, they diversified into the FMEG segment and their key FMEG are electric fans, LED lighting and luminaires, switches and switchgears, solar products and conduits and accessories.

They have 24 manufacturing facilities, including their two joint ventures with Techno Electromech Pvt Ltd. (“Techno”) and Trafigura Pte Ltd (“Trafigura”), located across the states of Gujarat, Maharashtra and Uttarakhand and the union territory of Daman and Diu.

Competitive Strengths of Polycab India Limited:

  • Market leader in wires and cables in India
  • Diverse suite of electrical products with varied applications across a diverse customer base
  • Strong distribution network
  • Manufacturing facilities with high degree of backward integration
  • Strong brand in the electrical industry
  • Experienced and committed 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

Polycab India Limited – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Financial Summary:

On the basis of Standalone statement:-

Amount (in INR & millions)
31-Dec-18 9Months31-Dec-17 9Months31-Mar-1831-Mar-1731-Mar-16
Total Assets53,859.0746,054.7744,432.5845,788.0838,747.40
Total Revenue55,610.5248,782.31 69,861.3861,225.4057,473.49
Total Expense50,102.90 45,945.54 64,097.2857,608.9354,819.33
Profit After Tax3,582.231,809.793,709.20 2,329.561,847.04
EBITDA 7,437.884,380.038,031.465,551.505,238.83

Earnings per Equity Share (in Rs millions)

31-Dec-18 9Months31-Dec-17 9Months31-Mar-1831-Mar-1731-Mar-16
Basic & Diluted25.5812.9626.2616.4513.21

From the above statements, one could find that the Polycab India Limited may perform well.

From Fiscals 2016 to 2018, our total income less excise duty grew at a CAGR of 14.31%. During the same period, Fiscals 2016 to 2018, our EBITDA and profit for the year grew at a CAGR of 23.82% and 41.71%, respectively. For Fiscals 2016, 2017 and 2018, our total income less excise duty was Rs52,355.47 million, Rs55,756.49 million and Rs68,414.91 million respectively, our EBITDA margin was 10.01%, 9.96% and 11.74% respectively, our PAT margin was 3.53%, 4.18% and 5.42% respectively, our ROE was 10.34%, 11.67% and 15.76% respectively, our RoCE was 15.99%, 14.98% and 21.25% respectively, and our debt to equity ratio was 0.45, 0.43 and 0.34 respectively.

From the nine month period ended December 31, 2017, our total income less excise duty, EBITDA and profit for the period ended December 31, 2018 grew by 17.48%, 69.81% and 97.94%, respectively. For the nine month periods ended December 31, 2017 and December 31, 2018, our total income less excise duty was Rs47,335.84 million and Rs55,610.52 million respectively, our EBITDA margin was 9.25% and 13.37% respectively, our PAT margin was 3.82% and 6.44% respectively, our ROE was 8.31% and 13.16% respectively, our RoCE was 9.88% and 19.04% respectively, and as at December 31, 2017 and December 31, 2018 our debt to equity ratio was 0.57 and 0.23 respectively.


Polycab India IPO – Promoters

The Promoters of this company are:

  • Inder T. Jaisinghani,
  • Ajay T. Jaisinghani,
  • Ramesh T. Jaisinghani
  • Girdhari T. Jaisinghani

List of Related Parties (Key Managerial Personnel)

  • Shyam Lal Bajaj
  • Sai Subramaniam Narayana
  • Anil Shipley
  • Manoj Verma
  • Gandharv Tongia
  • Anurag Agarwal
  • Diwaker Bharadwaj
  • Rajesh Mhatre

Interest in promotion of the Company

Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

Property Interest

The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

Interest in Intellectual Rights of the Company

Promoters has not shown any interest in acquiring the intellectual rights of the company.


Polycab India IPO Offer Details or Issue Details

Particulars No. Of Equity Shares
 Equity Shares Offered Upto 19,26,000* Equity Shares of face value of Rs.10/- each
 Of which:
Fresh IssueUp to [●] Equity Shares, aggregating up to Rs. 5,000
million
Offer for SaleUp to 17,582,000 Equity Shares, aggregating up to Rs. [●] million
 Reserved for Market Makers Upto [●] Equity Shares of face value of Rs. 10/- each
 Net Issue to the Public Upto [●] Equity Shares of face value of Rs.10/- each
 Of which:
QIB PortionNot more than [●] Equity shares 
Of which
Available for allocation to Mutual Funds only (5% of the QIB portion) (Excluding the Anchor Investor Portion)[●] Equity Shares of Face Value of Rs. 10/- each 
Balance for all QIBs including Mutual Funds[●] Equity Shares of Face Value of Rs. 10/- each 
 Retail Investors Portion Upto [●] Equity Shares 
 Non-Retail Investors PortionUpto [●] Equity Shares
 Equity Shares outstanding prior to the Issue141,205,838 Equity Shares
 Equity Shares outstanding after the IssueUpto [●] Equity Shares of face value of Rs. 10 each

Polycab India IPO Issue Object

These are the IPO Issue Objects of the company

  • Funding the Working Capital requirements of the Company:
  •  Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions by the company; and
  •  General Corporate Purposes

Polycab India IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • Market leader in wires and cables in India
  • Diverse suite of electrical products with varied applications across a diverse customer base
  • Strong distribution network
  • Manufacturing facilities with high degree of backward integration
  • Strong brand in the electrical industry
  • Experienced and committed management team

The relevant quantitative factors are:

On the basis of standalone statement:-

Basic & Diluted EPSRONW in %NAV (Rs.)
31-Mar-1613.2110.48
31-Mar-1716.4411.64
31-Mar-1826.2515.78
166.38
  • Price to Earnings (P/E) ratio in relation to Issue Price of [●] per Equity Share of face value of Rs. 10 each
ParticularsP/E ratio
Highest60.12
Average44.76
Lowest14.01
  • Competitive Peers:
Sr. No. ParticularsFace Value  (in Rs.)Basic EPS (In Rs.)Diluted EPS (In Rs.)P/E RatioRONW (%) NAV (In Rs.)
1Polycab1026.2226.22NA15.76166.37
2Havells India
Limited
110.5710.5755.7617.7659.65
3Bajaj Electricals
Limited
28.238.1960.128.9391.78
4Crompton Greaves
Consumer Electricals
Limited  
25.175.1538.5641.0112.60
5KEI Industries
Limited
218.5418.2114.0123.9477.17

Polycab India IPO Lead Managers

Lead Managers
Kotak Mahindra Capital Company Limited

Axis Capital Limited

Citigroup Global Markets India Private Limited

Edelweiss Financial Services Limited

IIFL Holdings Limited

YES Securities (India) Limited

Polycab India IPO Registrar to offer

Registrar to the Offer
Karvy Computershare Private Limited
Karvy Selenium,Tower B Plot number
31&32 Gachibowli Financial District
Nanakramguda Hyderabad-500032
Tel: +91 40 6716 2222
Fax: +91 40 2343 1551
E-mail:
Investor grievance e-mail:
Contact Person: M. Murali Krishna
Website: https://karisma.karvy.com
SEBI registration No.:INR000000221

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.

Polycab India IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.5/107.4/108.5/108.1/107.1/10
Sharekhan7.2/107.1/108.6/108.1/107.2/10
Kotak Securities7.3/107.5/108.4/108.1/107.3/10
ICICI Direct7.3/107.3/108.7/108.1/107.1/10
IIFL7.5/107.2/108.8/108.0/107.1/10
Edelweiss7.5/107.4/108.4/108.3/107.2/10
Zerodha7.4/107.1/108.5/108.1/107.0/10
5Paisa7.1/107.1/108.4/108.1/107.1/10
Karvy7.4/107.3/108.2/108.1/107.1/10
Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

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. 


Subscribe to Polycab India IPO

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Polycab India IPO News

News 1 – IPO ISSUE OPENS SOON (Download Prospectus)

News 2 – Polycab IPO RHP [Download RHP]


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