India’s largest electric wires and cables manufacturer set foot to raise nearly Rs. 1,345 crore from its three-day initial public offering, which opens today.
Polycab India Ltd. is giving nearly 2.5 crore equity shares at a price band of Rs. 533-538. Some of the promoters of Polycab, including World Bank’s lending arm International Finance Corporation, will sell the stake in the initial public offering. It will be a mix of offer-for-sale and fresh issue.
The company will settle its debts by using the fundraiser with the help of the fresh stock issuance, also it will use the funds for working capital. The value of the company is close to that of Rs. 8000 crore at the upper end of the price band. Its promoter holding will drop down to about 68 percent from 78.9 percent after listing.
The company manufactures electrical goods, including fans, LED lighting, switches and switchgear and solar products. Polycab has a market share of close to 12 percent in the Indian electric wire and cable market, according to its red herring prospectus.\
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