Massive IPO: Polycab public issue subscribed over 51 times; institutions, HNI’s lap up the offer

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Updated: April 9, 2019 5:20:21 PM

Polycab's Rs 1,345 crore issue received bids for 91.13 crore as against the issue size of 1.76 crore, implying a total subscription of 52 times.

Polycab?s Rs 1,345 crore issue received bids for 91.13 crore as against the issue size of 1.76 crore, implying a total subscription of 52 times.

Wires and cables manufacturer Polycab saw stellar response to its public offer as the issue was subscribed 52 times on the last day of the issue. The Rs 1,345 crore issue received bids for 91.13 crore as against the issue size of 1.76 crore, implying a total subscription of 52 times. The Non-institutional investor portion saw total demand for 110 times the portion reserved for them. QIBs were the next highest bidders with their portion subscribed about 92.50 times the portion reserved for them. Retail investors too bid for a total of 4 times their portion, implying a robust demand. The employees bid for a total of 2.8 times the portion reserved for them. 

Polycab’s IPO opened for subscription on April 5. The firm had set a price band of Rs 533- 538 for the issue. The bid lot had been kept at 27 shares and in multiples of 27 shares thereafter. Polycab looked to raise Rs 1,346 crore through the IPO, which includes Rs 400 crore fresh issue and offer for sale of Rs 945.91 crore at the upper end of the price band. 

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Earlier, brokerages had given a ‘subscribe’ rating on the issue, after taking into account the firm’s strong fundamentals and the sector’s healthy growth prospects. “The company is bringing the issue at p/e multiple of approx. 20 on FY18 eps basis at price band of Rs 533-538/share. Looking after strong fundamentals of the company along with the healthy growth prospects of sector, we recommend “Subscribe” on issue,” HEM Securities had said.  On similar lines, Sana Securities said that the Company’s IPO is available at a discount as compared to its peers.

Prabhudas Lilladher had said that the firm has a leadership position with most versatile product range in cables and wires; strong distribution with 2800 distributors and over 0.1 million retail touch points; strong manufacturing base; diversification into premium FMEG segment with presence in fans, lighting, switchgears & switches; and likely reduction in working capital due to channel financing.

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