On Monday, shares of Polycab India was listed on the stock exchanges at ?644.45, up 19.8% from its issue price of ?538 per share. Price band of the wires and cables manufacturer’s initial public offer (IPO) was at ?533-538 per share. The ?1,345-crore public issue was subscribed 51.96 times during its share sale on 5-9 April.
“Over the next two years, Return on capital employed (RoCE)/ Return on equity (ROE) will be 23% and 15% respectively and operating cash flow will be ?1,060 crore. We expect earnings CAGR of 19% over FY19-21,” the company said in a note on 15 April. It said that funds raised through IPO and operating cash flow of ?1,400 crore over FY19-21, will help the company to pay off debt in 2-3 years.
Polycab is a leading player in wire and cable with 18% share of the organised market. Over the last 3-4 years, it has widened its product offering to fans, LED lighting, luminaries, switches, solar products and accessories.