NEW DELHI: Polycab India, the largest manufacturer of wires and cables in terms of revenues, will hit the market with its Rs 1,345 crore initial public offering (IPO) on Friday. On the block are fresh issue of equity shares, aggregating up to Rs 400 crore, and offer for sale (OFS) of 17,582,000 shares.
The company on Thursday said it had successfully raised Rs 401 crore from 25 anchor investors. The price band for the issue has been fixed at Rs 533-538.
At the upper end of the price band, the company is demanding 21.6 times FY18 earnings. Peers Finolex Cables trades at 20 times and KEI Industries at 22.8 times FY18 earnings.
Sharekhan said the valuations sought are much lower than the industry average, but almost at par with close peers like KEI Industries and Finolex cables.
"However its RoE is tad lower than industry players barring Finolex cables," it said
Expansion into new products (like green products), enhancing market share by targeting growth segments (mining, renewables etc), ramp-up in FMEG business, focus on backward integration (Ryker Plant – for copper wire rods) and good brand identity could help maintain Polycab’s potential business prospects, said Centrum Broking. The brokerage has a ‘subscribe’ rating on the issue.
Choice Broking values the company at 17.2 times FY19 and 13.8 times FY20 basis, which is at discount to peers. The issue is reasonably priced, it said, and recommended a ‘subscribe’ rating on the issue.
If the issues sails through, the post-issue implied market capitalisation will be around Rs 8,000 crore.
The company 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, instrumentatio ..
The company on Thursday said it had successfully raised Rs 401 crore from 25 anchor investors. The price band for the issue has been fixed at Rs 533-538.
At the upper end of the price band, the company is demanding 21.6 times FY18 earnings. Peers Finolex Cables trades at 20 times and KEI Industries at 22.8 times FY18 earnings.
Sharekhan said the valuations sought are much lower than the industry average, but almost at par with close peers like KEI Industries and Finolex cables.
"However its RoE is tad lower than industry players barring Finolex cables," it said
Expansion into new products (like green products), enhancing market share by targeting growth segments (mining, renewables etc), ramp-up in FMEG business, focus on backward integration (Ryker Plant – for copper wire rods) and good brand identity could help maintain Polycab’s potential business prospects, said Centrum Broking. The brokerage has a ‘subscribe’ rating on the issue.
Choice Broking values the company at 17.2 times FY19 and 13.8 times FY20 basis, which is at discount to peers. The issue is reasonably priced, it said, and recommended a ‘subscribe’ rating on the issue.
If the issues sails through, the post-issue implied market capitalisation will be around Rs 8,000 crore.
The company 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, instrumentatio ..
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