Shares of Polycab India Ltd attracted buying interest and gained 2% on 30 October after the National Company Law Appellate Tribunal (NCLAT) cancelled the insolvency proceedings initiated against the company. 

The ruling removed a major legal concern that had put the wires and cables manufacturer under pressure. The case started after Asier Metals Private Limited approached the National Company Law Tribunal (NCLT), Ahmedabad, over an alleged unpaid debt of Rs 2.79 crore.

Asier Metals issued a demand notice on 6 August 2026, and filed an insolvency petition on 24 August. On 7 October, the NCLT admitted the petition and initiated corporate insolvency proceedings against Polycab.

Polycab challenged the order, arguing that a dispute already existed between the two companies over payments and credit notes. The NCLAT had temporarily stayed the insolvency order on 9 October before delivering its final ruling on 30 October.

The NCLAT allowed Polycab’s appeal and set aside the NCLT order. It also released the company from the insolvency process, allowing its board of directors to manage operations independently.

The earlier insolvency order had triggered concerns about Polycab’s stock market eligibility. The NSE had announced that its futures and options contracts would be phased out from 30 December 2026. MSCI had also deferred the company’s removal from its indices while awaiting the tribunal’s decision.

The latest ruling is a positive development for Polycab. Investors will now watch for further clarity on the impact of the decision on its derivatives contracts and index status.

The stock rose 2.42% on the NSE during morning trade. However, it later gave up part of its gains as the trading session progressed. At 12:15 pm, the shares of Polycab India were trading 0.03% lower at Rs 7,742 on NSE. 

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