Polycab IPO
(i) Founded in 1996, Polycab wires is in the business of manufacturing and selling wires and cables and fast moving electrical goods (“FMEG”) under the “POLYCAB” brand.
(ii) They manufacture and sell a diverse range of wires and cables and the 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.
In 2009, they diversified into the engineering, procurement, and construction (“EPC”) business, which includes the design, engineering, supply, execution, and commissioning of power distribution and rural electrification projects.
In 2014, they diversified into the FMEG segment and the key FMEG are electric fans, LED lighting and luminaires, switches and switchgear, solar products and conduits and accessories.
(iii) According to CRISIL Research, they are the largest manufacturer in the wires and cables industry in India, in terms of Revenue from the wires and cables segment and provide one of the most extensive ranges of wires and cables
in India. For Fiscal 2018, they have a market share of approximately 18% of the organized wires and cables industry. CRISIL Research expects the wires and cables industry in India to expand at a CAGR of approximately 15% in value terms to reach approximately ₹1,033 billion by Fiscal 2023.
(iv) They have 24 manufacturing facilities, including two joint ventures with Techno Electromech Pvt Ltd. (“Techno”) and Trafigura Pte Ltd (“Trafigura”), located across the states of Gujarat, Maharashtra and Uttarakhand and the union territory of Daman and Diu. Three of these 24 manufacturing facilities are for the production of FMEG, including a 50:50 joint venture with Techno, a Gujarat-based manufacturer of LED products.
In 2016, they entered into a 50:50 joint venture with Trafigura, a commodity trading company, to set up a manufacturing facility in Waghodia, India to produce copper wire rods (the “Ryker Plant”). They expect the Ryker Plant to commence commercial operations by the end of Fiscal 2019, with an estimated annual capacity of 258,620 MT of copper wire rods once it is fully operational.
(v) They have an established supply chain comprising a network of authorized dealers, distributors, and retailers. The distribution network in India comprises over 3,300 authorized dealers and distributors and 29 warehouses as of March 31, 2018.
They supply the products directly to the authorized dealers and distributors who in turn supply the products to over 100,000 retail outlets in India. The company manages sales and marketing activities through their corporate office, three regional offices and 20 local offices in various parts of India as on June 30, 2018.
In addition, in Fiscal 2018, they exported their products to over 40 countries.
Objects of the Polycab IPO:
Polycab IPO Details:
| Current GMP: | 88-90 |
| Open Date: | Apr 05 2019 |
| Close Date: | Apr 09 2019 |
| Total Shares: | 25044686 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Build IPO |
| Issue Size: | 1342 Cr. |
| Lot Size: | 27 Shares |
| Issue Price: | ₹ 533-538 Per Equity Share |
| Listing At: | NSE,BSE |
| Listing Date: | Apr 16 2019 |
Financials of Polycab IPO:
| Particulars(Cr) | 2016 | 2017 | 2018 | 9MFY19 |
| Balance Sheet Item | ||||
| Share Capital | 141.206 | 141.206 | 141.206 | 141.206 |
| Net Worth | 1785.55 | 1996.5 | 2353.2 | 2722.8 |
| Book Value | 126.45 | 141.39 | 166.65 | 194 |
| Long-Term Debt | 100.00 | 161.00 | 158.00 | 93.00 |
| Short-Term Debt | 694.00 | 659.00 | 568.00 | 466.00 |
| D/E | 0.44 | 0.41 | 0.31 | 0.20 |
| Current Ratio | 1.36 | 1.33 | 1.61 | 1.48 |
| Receivable Days | 84.00 | 70.00 | 66.00 | 53 |
| P/L Items | ||||
| Revenue | 5747.34 | 6122.22 | 6985.95 | 5561 |
| EBITDA | 524 | 555 | 803 | 748 |
| EBITDA Margins | 9.1% | 9.1% | 11.5% | 13.4% |
| PAT | 182 | 232 | 373 | 357 |
| PAT Margins | 3.2% | 3.8% | 5.3% | 6.41% |
| EPS | 12.89 | 16.43 | 26.42 | 25.32 |
| Key Ratios and Valuation | ||||
| RONW | 10.2% | 11.6% | 15.9% | 13.1% |
| P/E | 17 | |||
| P/B | 2.56 | |||
| Mcap | 7994 Cr | |||
| Mcap/Sales | 1.07 | |||
| EV | 8526 Cr | |||
| EV/EBITDA | 11.39 | |||
Comparison With Peers:
| Particulars(Cr) | Polycab Wires | Havells India | Bajaj Electricals | KEI Industries |
| Balance Sheet Item | ||||
| Share Capital | 141.206 | 62.51 | 20.41 | 15.67 |
| FV | 10 | 1 | 2 | 2 |
| Net Worth | 2353.2 | 3739 | 944 | 604 |
| Book Value | 166.65 | 60.00 | 92.00 | 77.00 |
| Long-Term Debt | 158.00 | 81.00 | 11.00 | 145.00 |
| Short-Term Debt | 568.00 | 35.00 | 706.00 | 604.00 |
| D/E | 0.31 | 0.03 | 0.75 | 1.24 |
| Current Ratio | 1.61 | 1.47 | 1.09 | 1.25 |
| Receivable Days | 66.00 | 14.00 | 134.00 | 107.00 |
| P/L Items | ||||
| Revenue | 6985.95 | 8255.00 | 4760.00 | 3468.00 |
| Revenue Growth in 3 years | 10.25% | 22.46% | 1.35% | 14.7% |
| EBITDA | 803 | 1168 | 348 | 350 |
| EBITDA Growth in 3 years | 23.79% | 19.57% | 10.70% | 18.32% |
| EBITDA Margins | 11.5% | 14.1% | 7.3% | 10.1% |
| PAT | 373 | 712 | 95.6 | 144 |
| PAT Growth in 3 years | 43.16% | -0.21% | -6.48% | 52.40% |
| PAT Margins | 5.3% | 8.6% | 2.0% | 4.2% |
| EPS | 26.42 | 11.40 | 8.30 | 18.37 |
| Key Ratios and Valuation | ||||
| RONW | 15.9% | 19.0% | 10.1% | 23.8% |
| P/E | 17 | 66.40 | 62.89 | 21.88 |
| P/B | 2.56 | 12.62 | 5.67 | 5.25 |
| Mcap | 7994 | 47320 | 5327 | 3165.00 |
| Mcap/Sales | 1.07 | 5.73 | 1.12 | 0.91 |
| EV | 8526 | 45892 | 6019 | 3838.00 |
| EV/EBITDA | 11.39 | 39.29 | 17.30 | 10.97 |
Recommendation on Polycab IPO:
Registrar of Polycab IPO:
Bid Details of Polycab IPO as on
09-Apr-2019 22:30:01 IST
Total Number of Applications in Retail Category: 1,224,608
Application-wise Subscription in Retail Category: 3.80X
Discussion on Polycab IPO:
100 Comments
Leave a Reply
You must be logged in to post a comment.
Please share basis of allotment in retail category
Will polycab rise anywhere close to 700 soon enough?
Looks grim due to poor results. Let us wait for this quarter results.
@marketwizard : brought 77 shares at 655 shall i hold oo sell ? if i hold what cud be the target and in how many days ?
Hold Polycab for the target of 700 within 2 months.
Forwarded as Received
*Polycab India LtD*
Now We can Compare with KEI Industries, but I would give Little Premium over *KeI Industries* to *Polycab* due to Shift from Only Wires and Cables to FMEG(Fast moving Electrical good), although contributes less than 15% but growing at *35-40%* CAGR
And *Polycab* is building its Brand
Now *KEI Industries* trades at *10* times EV/EBIDTA and *20 Times Earnings* for FY19, with Little high ROE but little more debt than *Polycab*
Now *Polycab*
At *10* times EV/EBIDTA for FY19 price come at *640*
And *10 times EV/EBIDTA* *FY20* price comes at *680-690*
PE of *20 FY19 price comes at *620* and PE of *20 for FY20* price comes at *670-680*
Sales Growing at More than *15-18% CAGR*
We have To watch out it’s *Electrical Good business* which have high Margin, and command High EV/EBIDTA,
So if we give *11 times FY20 EV/EBIDTA*
Giving a premium of *10% over normal due to Electrical good business*
*Price comes at *750*
So Anything less than *630-635-620-610*
*Would command a buy*
*670-680* anything less than sell would be selling cheap
So *620-640-680* listing expectation.
Listing at 633 ..what should be done now?@market wizard
Got 3/9.
What should be the strategy.
Should I hold or sell on listing?
Thanks in advance.
Sell 50% on listing and then hold 50% with stop loss at 600. Very high chances of breaking 700 if follow up buying comes after listing.
Best of luck to all allottes.
Hey guys listing is 16-apr-2019 confirmed news
Yes. Listing is tomorrow. News is confirmed.
BSE Circular link:
https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20190415-32
I have applied for 10 lots through SBI net banking. BUT Not allotted to me OR EVEN get refund my money in my bank account. please help.
Hi Neha,
Please check this with SBI customer care. They should adjust the amount.
Good luck!
@Market wizard applied for 2 lots but i didnt get 1 lot.even HDFC amc when it is more than poly cab ipo i got allotted 1 unit.What shud i do ?
kindly note polycab to list tommorow
Name of the company
Polycab India Limited
542652
POLYCAB
INE455K01017
I have applied 3 lots and got 1 successfully.Should I hold it ??@Marketwizard Please help I m new in Market
If you are new to the market then sell 50% on listing and carry 50% with the stop loss at issue price.
Lovely calculation, in profit go long with stop loss, thanks
How much expecting listing gain and stop loss?
Thank you Sir..
I HAVE GOT 12 OUT OF 36
THANK YOU MARKET WIZARD FOR YOUR SINCER AND HELPFUL COMMENTS,,THESE COMMENTS MADE ME MORE RICHER,,GOD BLESS YOU,POLYCAB GREY MARKET RATE IN KOLKATA 100-105
Not alloted
2 allotted, out of 6
Congratulations
https://corpreg.karvy.com/ipostatus/
POLYCALB allotment Available…..!
Bad Luck, Not allotted to me
Applied for 7 lot, zero allotment
1 out of 3
0 for 2..
Same, 0 out 2, got rejected, shows blocked
0 allotment out of 6!!
*87000* apps rejected in *polycab ipo different reason*
*Polycab India Limited IPO – Basis of allotment update*
*Retail* Investors will get *27 Shares in 401:1416 ratio (3.53x)*
*HNI Final Subscription: 108.64198*
Hi Market Wizard,
Could you please explain this?
what you want to know ??
401 applications would be accepted out of each 1416 application
Oh Thank You Vivek and Market Wizard
I trying my logic…plz cnfrm @market wizard
Polycab issue price pe is 16. so 538÷16=33 approx . it will definitely trade above 20 pe . as Kei wires have pe of 19.50 but polycab wire is way better than kei wires. so at least 33×4=122-130 gain jarur aana chahiye…
No.
what ??
What is the allotment date for the same..?? @Market Wizard..
15 -16 april
Is new rule is applicable on polycab
How many ipo we apply with a bank in different demats account according to new sebi rule from which date new rule applicable
One application per account.
I have two demate acc with different pan {my and wife }can i apply both with my bank account
Yes.PAN different hona Chahiye..
Premium for today GMP
Yaa sure 👌🏻
Wipro will announce buy back details on 16th April
Metro premium 45+
GMP FOR POLYCAB
Goid responded
Maximum Earning .??
Rvnl ka aloument ka koi update sir ji
Allotment done..
Polycab India Subscription
9-4-2019 @ 03:53:32 PM
QIB => 88.9526
NII => 105.6834
RII => 3.9380
EMP => 2.7162
TOTAL => 49.6072
Grey 100-103 delhi
Ahmedabad Gurukul Area
GMP: 115-120
Polycab India Subscription
9-4-2019 @ 03:33:57 PM
QIB => 75.3626
NII => 64.2031
RII => 3.8496
EMP => 2.6949
TOTAL => 36.9176
🔥🔥Polcab IPO Demand🔥🔥
JM, Kotak, Birla HNI worth 12K Crore Bidded Now..
Also Axis, Bajaj will file HNI application worth 6K Crore Now.
Just 4 Fun
around last 1 hour due to polycab demand in QIB & NII temperature is jumped to 45+ in market
Polycab India Subscription
9-4-2019 @ 03:28:19 PM
QIB => 69.3549
NII => 44.6807
RII => 3.8020
EMP => 2.6830
TOTAL => 31.0525
Polycab India IPO
Day 3 at 2:30PM
The following data is assuming the shares will be issued at @538/- (upper price band)
QIB*: 36.64X (*Excluding Anchor)
NII: 7.07X
RII: 3.37X
Empl.: 2.51X
Total: 9.82X
Applications: 8,63,000 Approx
No. of Applic-wise: 2.68X
Polycab India IPO
GMP 87 +/- 1
Kostak 750 – 800
775 kostak
Rnvl ka kya update h sir ji
Ask RVNL related questions here:
https://investorzone.in/ipo/rail-vikas-nigam-limited-ipo/
This page is for POLYCAB IPO only.
why the allotted shares are same even if applied for more with same allotment ratio ?
in that case why anybody will apply for more ?
Are you taking about RVNL?
If yes, then I would like to clarify that when the issue got oversubscribed, the allotment will be done for one application only irrespective of the application applied and that too via the lottery system.
Mistake
850-900
Grey
83-85
Polycab India IPO
Day 2 at 5:00PM
The following data is assuming the shares will be issued at @538/- (upper price band)
QIB*: 3.63X (*Excluding Anchor)
NII: 0.70X
RII: 1.52X
Empl.: 1.77X
Total: 1.66X
Applications: 3,68,242 Approx
No. of Applic-wise: 1.14 X
Polycab India IPO
GMP 76 +/- 1
Kostak 800 – 825
☄Polycab 800 buyer
900 seller
Sub to 1700 buyer
☄Metro 375 buyer
Sub to 550 buyer
surat
Polycab India Subscription
8-4-2019 @ 11:22:53 AM
QIB => 1.9648
NII => 0.1188
RII => 0.6311
EMP => 0.8566
TOTAL => 0.9032
Polycab application rate ?
Polycab
89-94
Metropolis
45-50
Poly 80 84
I have demat in zerodha
How can I apply for this ipo
Through bank a/c , ASBA.
open internet banking and apply through it…
Polycab premium rate?
Polycab 75 +/- 1
Metropolis 12 +/- 1
Consolidated Brokerages Views on Polycab IPO
Angel: ” In terms of valuations, the pre-issue P/E works out to 16.7x its FY2019 annualized earnings (at the upper end of the issue price band), which is slightly lower compared to its peers like Finolex Cables (20.7x) & Kei Industries (20.x). Further, Polycab’s market leadership position in wires & cables segment, diversified product portfolio, strong distribution network & brand recall and proven financial track record are the key positives. Given the above favorable factors, we recommend Subscribe to issue. “
Capital Market: ” Score 48/100, As the FMEG business further matures and more and more products are added in the category, the leverage on the existing distribution network and economies of scale provides a good scope for margin improvement in the FMEG business. The issue is offered at reasonable valuations and offers margin of safety for investors.”
Dalal Street Journal: ” At the higher price band of Rs. 538, the offer is demanding a market cap to sales (FY18) of 1.14 times, which is lower than that of Havells that has current market cap to sales of 5.8 times. However, the other key player KEI Industry is trading at market cap to sales of less than one. In terms of PE, the offer is made at around 21.6 times its FY2018 consolidated EPS of Rs. 24.95 on a post-issue equity share capital of Rs. 148.64 crore of face value of Rs. 10 each. Havells is currently trading at a PE of almost 70x, while KEI industries is trading at a PE of 22.12x.
Looking at valuation matrices, we believe that the offer is attractively valued and you can subscribe to the issue.”
ICICIDirect: “At the IPO price band of | 533-538, the stock is available at a price to earnings multiple of 22x FY18 EPS. We believe the issue is available at attractive valuation, considering its leadership position in the wire & cable industry, low debt/equity (~0.3x) ,attractive return ratios (RoCE ~21%, RoE ~16%). We recommend SUBSCRIBE to the issue at the offer price. “
Religare: “Polycab’s fundamental track record has been sound over FY14-18 with revenue and PAT CAGR of 14.2% and 42.8% respectively led by margin improvement (+150bps), higher other income and lower interest rate. We believe the strong performance of the company would continue on the back of positive industry growth prospects largely due to government
initiatives in power and infrastructure, an increase in industrial investment, a rise in consumer spending and an increase in exports of
wires and cables”
SMC : “ Polycab India manufactures and sells a diverse range of wires and cables and their key products in the wires and cables segment. The company is engaged in the FMEG segment, which has bright prospects ahead. Moreover, the LED lightning arena is in advance mode. On the issue pricing front, it is reasonably priced and its fundamentals are also good. Investor may opt the issue. “
SP Tulsiyan website: “Market leadership, strong brand, promoter-cum-professional management, improving financials and attractive pricing make this issue of Polycab India a subscribe. ”
(i) Polycab India Limited raises Rs 401 crore from 25 anchor investors @ Rs 538 per share Initial public offering to open on April 05, 2019 and to close on April 09, 2019 Price Band: Rs. 533 to Rs. 538 per Equity Share
(ii) The anchor investors include:
THE NOMURA TRUST AND BANKING CO. LTD. AS THE TRUSTEE OF NOMURA INDIA STOCK MOTHER FUND 8.48%;
THE LEME MASTER FUND LIMITED 8.48%;
AUBURN LIMITED 5.98%;
KUWAIT INVESTMENT AUTHORITY FUND 223 3.74%;
ASHOKA INDIA OPPORTUNITIES FUND 1.58%;
ASHOKA INDIA EQUITY INVESTMENT TRUST PLC 1.58%;
RELIANCE CAPITAL TRUSTEE CO. LTD. A/C RELIANCE LARGE CAP FUND 8.48%;
L&T MUTUAL FUND TRUSTEE LTD. – L&T FOCUSED EQUITY FUND 2.85%;
L&T MUTUAL FUND TRUSTEE LTD. – L&T INFRASTRUCTURE FUND 2.07%;
L&T MUTUAL FUND TRUSTEE LTD. – L&T LARGE AND MID CAP FUND 3.56%;
ADITYA BIRLA SUNLIFE TRUSTEE PVT. LTD. A/C ADITYA BIRLA SUNLIFE INFRASTRUCTURE FUND 0.99%;
ADITYA BIRLA SUNLIFE TRUSTEE PVT. LTD. A/C ADITYA BIRLA SUNLIFE MID CAP FUND 5.25%;
ADITYA BIRLA SUNLIFE TRUSTEE PVT. LTD. A/C ADITYA BIRLA SUNLIFE INDIA GEN NEXT FUND 0.99%;
FRANKLIN INDIA SMALLER COMPANIES FUND 8.48%;
SUNDARAM MUTUAL FUND A/C SUNDARAM MID CAP FUND 8.48%;
IDFC STERLING VALUE FUND 3.99%;
IDFC EQUITY OPPORTUNITIES SERIES (6) 0.75%;
TATA MUTUAL FUND – TATA SMALL CAP FUND 2.49%;
SBI LIFE INSURANCE CO. LTD. 5.98%;
ADITYA BIRLA SUN LIFE INSURANCE COMPANY LTD. 4.74%;
BAJAJ ALLIANZ LIFE INSURANCE CO. LTD. 2.49%;
ABAKKUS GROWTH FUND – (1) 2.49%;
EDELWEISS ALTERNATIVE INVESTMENT OPPORTUNITIES TRUST – EDELWEISS CROSSOVER OPPORTUNITIES FUND – SERIES II 2.49%;
WHITE OAK INDIA EQUITY FUND 1.58%;
ICICI LOMBARD GENERAL INSURANCE CO. LTD. 2.00%.
Polycab IPO
GMP 104/106
Kostak 875-900
METROPOLIS
28-32
POLYCAB
95-100
RVNL
0.20-0.40
P0LY PRIMUM. 94-98
How to participate?? Pls guide step wise step
RVNL
0.50 Seller
Metropolis
40-45
Polycab
70-75
A must apply IPO. Waiting for Anchor Investors list .
(a) 9MFY19
Revenue= 5561 Cr
PAT= 358 Cr
EPS= 25.31
If we annualize 9MFY19 Financials, the EPS for FY18-19 would be 32.
The IPO Price of 538 is coming at P/E of 16.75.
(b) Debt
(i) as on 31.03.2017
Long-Term Debt = 166 Cr
Short-Term Debt = 1018 Cr
(ii) as on 31.03.2018
Long-Term Debt = 158 Cr
Short-Term Debt = 568 Cr
(iii) as on 31.12.2018
Long-Term Debt = 93 Cr
Short-Term Debt = 446 Cr
Conclusion: The IPO is priced at mouth-watering valuation. Ready for some blockbuster gain in Poly Cab IPO. The company is consistently reducing debt which is a big positive.
Ipo price not 533-536…..533-538. i think .
Admin sir
Please mention ipo size
1300 cr
I have two accounts with HDFC bank in the name of me and my spouse. I could register only one upi id for one account and a number associated with that. My spouse’s account too is linked with dmat but a upi can’t be registered as we have one common cellphone. We have installed Bhim (independent) upi app and created a upi id linking my spouse’s HDFC account but the id is like abc@upi and not abc@hdfcbank. Can an ipo application be made using this abc@ipi id linked to HDFC account?
Polycab India LTD
Issue Opens : 8th April
Issue Closes : 10th April
Price Band
787/- to 789/-
Lot size : 19 Shares
Recommendation :
Must Apply
KEI Industries and Polycan both have shown good growth both in Top line and bottom line.
For Havells, it is more of Top line and rather degrowth in the bottom line.
The Havel valuation are very expensive at current level.
KEI among three listed is available at reasonable Valuation.
If we give same valuation to Poly cab it’s Mcap could be in range of 9000 Cr.
As per market estimates vide OFS the promoters and IFC ( the arm of World Bank) are selling close to 2.488 cr there by getting 2000 Cr. So as per this price could be in range of 800
Would be a very good IPO after a long time.
1. Market leader in wires and cables in India
2. Diverse suite of electrical products with varied applications across a diverse customer base
3. Strong distribution network
4. Manufacturing facilities with high degree of backward integration.
5.Strong brand in the electrical industry.
6. The experienced and committed management team