Polycab India Limited is engaged in the business of manufacturing selling and distributing wires, cables, and FMEG products under the “POLYCAB” brand. This is mainly a Mumbai based company. The article is about Polycab India IPO Review.
Polycab India IPO Review Issue Details :
- IPO Opens on – Apr 5, 2019
- IPO Closes on – Apr 9, 2019
- Face Value – Rs.10 Per Equity Share.
- Issue Price – Rs. – Rs. Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Market Lot – 27 shares
- Minimum Order Quantity – 27 shares
- Issue Size – Eq shares Rs 10 (aggregating up to Rs. 1346.00 cr.
- Listing Exchange – BSE, NSE.
- Draft Prospectus – Click Here
Objectives of the issue of the Company :
- Scheduled repayment of all or a portion of certain borrowings availed by Polycab India Limited.
- To fund the incremental working capital requirements of this Company.
- General corporate purposes of Polycab India Limited.
About The Company –
- Polycab India Limited was incorporated in 1996.
- Some of the FMEG products produced by this company are solar products, luminaires, LED lighting, electric fans, and switchgear.
- Polycab India Limited entered into an engineering, procurement, and construction (“EPC”) business and FMEG business in 2009 and 2014, respectively.
- This company has more than 3,300 authorized dealers and distributors, 100,000 retail outlets, 24 manufacturing facilities and 29 warehouses in India.
- All the sales and marketing activities of Polycab India Limited are handled through corporate office, three regional offices and 20 local offices located across India.
- This company has market shares of nearly 18% of the organized wires and cables industry and around 12% of the total wires and cables industry in the country based on manufacturers realization.
- Polycab India Limited entered into a joint venture agreement with Trafigura to establish a manufacturing facility in Waghodia, India for producing copper wire rods.
- This company has an established supply chain comprising a network of authorized dealers, distributors, and retailers.
- Polycab India Limited manufacture and sell a diverse range of wires and cables and our 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.
- This company has 25 manufacturing facilities, including their 2 joint ventures with Techno and Trafigura, located across the states of Gujarat, Maharashtra and Uttarakhand and the union territory of Daman and Diu.
Address – E-554, Greater Kailash-II,
New Delhi- 110048, India,
Phone no. – 011-29228574
Address – Polycab House,
771, Mogul Lane,
Mahim (West), Mumbai 400 016,
Tel. : 022-24327074, 67351400,
Fax : 022-24327075,
Sai Subramaniam Narayana,
Company Secretary and Compliance Officer
Tel.: +912224327074; Fax: +912224327075
The promoter of Polycab India Limited :
- Inder T. Jaisinghani, aged 65 years, is the Promoter, Chairman and Managing Director of this Company.
- Ajay T. Jaisinghani, aged 66 years, is the Promoter and Whole-Time Director of this Company.
- Ramesh T. Jaisinghani, aged 62 years, is the Promoter and Whole-Time Director of this Company.
- Girdhari T. Jaisinghani, aged 73 years, is a Promoter of this Company.
The Board of Directors of this company :
- Inder T. Jaisinghani, aged 65 years, is the Chairman and Managing Director of this Company.
- Ajay T. Jaisinghani, aged 66 years, is a Whole-Time Director of the Company.
- Ramesh T. Jaisinghani, aged 62 years, is a Whole-Time Director of this Company.
- Shyam Lal Bajaj, aged 64 years, is the Chief Financial Officer and Whole-Time Director of this Company.
- Radhey Shyam Sharma, aged 67 years, is an Independent Director of the Company.
- Tilokchand Punamchand Ostwal, aged 63 years, is an Independent Director of this Company.
- Pradeep N. Poddar, aged 64 years, is an Independent Director of this Company.
- Hiroo Mirchandani, aged 57 years, is an Independent Director of this Company.
Competitive Strengths of Polycab India Limited :
- The main competitive strengths of Polycab India Limited are the market leader in wires and cables in India.
- A diverse suite of electrical products with varied applications across a diverse customer base of this company.
- Another strength of Polycab India Limited is its strong distribution network.
- One of the competitive strengths of this company is its manufacturing facilities with a high degree of backward integration.
- A most important strength of Polycab India Limited is their strong brand in the electrical industry.
- The experienced and committed management team are one of the important strength.
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.
Company Financials :
Polycab India IPO Review:
The above figure represents the annual profit-loss statement of the company. This shows the company has gained maximum profit in the financial year 2018. Let’s have a look at the company DRHP (draft red herring prospectus). According to the consolidated statement of the company, EPS (earnings per share) was at 26.23 in FY18. The company’s P/E ratio is absent here. RoNW (return on net worth) and NAV/Share of the company were at 15.76 and 192.36 respectively. Therefore, based on our analysis Polycab India IPO Review carries a NEUTRAL view. Besides this, on the issue opening date, you can check the NSE bid details to get confirmation. Our previous article has da description about this. Apart from this Grey market premium is also another important point to analyze an IPO.