Incorporated on January 10, 1996, Polycab India Limited (“Polycab”) is engaged in the business of manufacturing and selling Wires and Cables and Fast Moving Electrical Goods (“FMEG”) under the “POLYCAB” brand. According to CRISIL Research, Polycab is the largest manufacturer in the Wires and Cables industry in India, in terms of revenue from the wires and cables segment.
Polycab manufactures and sells 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. In 2014, they diversified into the Fast Moving Electrical Goods (“FMEG”) segment and their key FMEG products are Electric Fans, LED Lighting and Luminaires, Switches and Switchgears, Solar Products and Conduits and Accessories
For Fiscal 2018, they had a market share of approximately 18% of the organized wires and cables industry and approximately 12% of the total wires and cables industry in India, estimated at Rs.52,500 crore based on manufacturers realization (Source: CRISIL Research).
The company has 24 manufacturing facilities, including their 2 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.
Their Pan India Distribution Network comprises over 2,800 Authorized Dealers and Distributors and 30 Warehouses as at December 31, 2018. Polycab manages their sales and marketing activities through their Corporate Office, 3 Regional Offices and 20 Local Offices in various parts of India as at December 31, 2018.
- Rs.1,336.47 Cr – Rs.1,345.26 Cr
- QIB- 50%, NIB- 15%, Retail- 35%.
- Rs. 10 per equity share
- NSE, BSE
- Karvy Fintech Pvt. Ltd.
- 27 Equity Shares and multiple thereof
- IIFL Holdings, Yes Securities
- Axis Capital, Kotak Mahindra Capital, Citigroup Global, Edelweiss Financial
- ASBA Mandatory (Application made using third party UPI
or ASBA Bank A/c are liable to be rejected).
- 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
Enhance and strengthen our leadership position in wires and cables
Continue to expand the FMEG business
Expand distribution reach
Continue to invest in technology to improve operational efficiencies, customer satisfaction and sales
Strengthen brand recognition
An initial public offering (IPO)/public issue is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves the way for listing and trading of the issuer’s securities.
The shares are initially issued in the primary market at an offering price determined by the lead manager(s)/the merchant banker(s) to the IPO.
The primary market consists of a syndicate of investment banks and broker dealers that the lead managers assemble and that allocate shares to institutional, high net worth individuals (HNI) and individual/retail investors.
As far as IPOs are concerned, a price band is a value-setting method whereby a seller indicates an upper and lower cost range, between which the buyers/investors are able to place their bids. The price band's floor and cap provide guidance to the buyers.
It is up to the company to decide on the IPO price or the price band, in consultation with the lead managers.
The basis of IPO price is disclosed in the offer document. The issuer is required to disclose in detail about the qualitative and quantitative factors justifying the IPO price.
The IPO price is normally based on such factors as the company’s financials, products and services, income stream as well as the demand for the shares and current market conditions.
The lead managers must determine a fair offering price, which takes into consideration the need for the company to raise capital while offering the new issue at a price which represents a fair value of the shares.
A Red Herring Prospectus (RHP) is a document submitted by a company (issuer) as part of a public offering or an IPO of securities (either stocks or bonds).
A retail individual investor means an investor who applies or bids for securities of or for a value of not more than Rs 2,00,000.
Yes. He can bid in a book-built IPO for a value not more than Rs 2,00,000. Any bid made in excess of this will be considered in the HNI category.
Yes. Investors can change or revise the quantity or price in the bid using the form for changing/revising the bid that is available along with the application form. However, the entire process of changing or revising the bids shall be completed before the IPO closes.
In case of fixed price issues, investors are intimated about the CAN/Refund order within 10 days of the closure of the IPO.
In case of book built IPOs, the basis of allotment is finalised by the book-running lead managers within two weeks from the closure of the issue. The registrar then ensures that the demat credit or refund as applicable is completed within 6 working days of the closure of the issue.
In the case of book-built issues, the exchanges (Bombay Stock Exchange/National Stock Exchange) display the data regarding the bids obtained (on a consolidated basis between both these exchanges).
The data regarding the bids is also available category-wise.
Investors are entitled to receive a Confirmatory Allotment Note (CAN) in case they have been allotted shares within 6 working days from the closure of a book Built issue. The registrar has to ensure that the demat credit or refund as applicable is completed within 6 working days of the closure of the book-built issue.
The lead managers also publish an advertisement at least in an English national daily with wide circulation, one Hindi national paper and a regional language daily circulated at the place where registered office of the issuer company is situated.
The listing on the stock exchanges is done within seven days from the finalisation of the issue.
Ideally, it would be around three weeks after the closure of the book-built issue.
In case of fixed price issue, it would be around 10 days after closure of the issue.