Polycab India Ltd

Polycab India

About the Company:

Polycab India Ltd is engaged in the business of manufacturing and selling wires and cables and fast moving electrical goods (“FMEG”)under the “POLYCAB” brand.

Company is 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 range of wires and cables in India.

Company 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, and others including welding cables, submersible flat and round cables, railway signaling cables, specialty cables and green wires.

For Fiscal 2018, Company had a market share of approximately 18% of the organized wires and cables industry and approximately 12% of the total wires and cables industry in India.

Apart from wires and cables, they also manufacture and sell FMEG such as electric fans, LED lighting and luminaires, switches and switchgears, solar products and conduits and accessories.

 

Company has 3 Business Verticals:

  • (i) Wires and Cables.
  • (ii) FMEG comprising electric fans, LED lighting and luminaire, switches and switchgears, solar products and conduits and accessories.
  • (iii) EPC. Key wires and cables products include light duty cables (“LDCs”), low voltage, medium voltage, extra-high voltage, instrumentation, building wires and electrical wiring accessories (“EWA”).

 

Company’s Manufacturing Facilities:

Company has 24 manufacturing facilities, including our 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.

 

Company’s Distribution Network:

Company has an established supply chain comprising a network of authorized dealers, distributors and retailers. This network supplies the products across India.

Company’s distribution network in India comprise over 3,300 authorized dealers and distributors and 29 warehouses as at March 31, 2018.

Company supplies its products directly to their authorized dealers and distributors who in turn supply the products to over 100,000 retail outlets in India.

Company manages its sales and marketing activities through their corporate office, three regional offices and 20 local offices in various parts of India as at June 30, 2018. In addition, in Fiscal 2018, Company exported their products to over 40 countries.

 

Joint Venture with Trafigura.

In 2016, we 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”).

Company expects 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.

The Ryker Plant will strengthen the backward integration of their manufacturing process as they expect that it will meet a substantial part of their demand for copper wire rods for the manufacturing of our wires and cables and FMEG.

 

Company’s Institutional Business:

Company works closely with major power utilities, oil and gas, IT parks, metro rail, infrastructure, metal and non-metal, cement and EPC companies that
operate in India and abroad.

Company’s major customers include institutional clients such as L&T Construction and government clients such as Konkan Railway Corporation Ltd.

 

ROE & ROCE of Key Players in the Market:(For Fiscal 2018) 

 

Management Team:

  1. Mr. Inder T. Jaisinghani (Designation: Chairman and Managing Director)
  2. Mr. Ajay T. Jaisinghani (Designation: Whole-Time Director)
  3. Mr. Ramesh T. Jaisinghani (Designation: Whole-Time Director)

 

Objectives of the Issue:

  • Scheduled repayment of all or a portion of certain borrowings availed by the Company.
  • To fund incremental working capital requirements of the Company.
  • General corporate purposes.

 

Financials of the Company: (Consolidated)

(in Crores) FY 14 FY 15 FY 16 FY 17 FY 18 30th June 18
Revenue 3993.9 4712.4 5747.3 6122.2 6985.9 1703.3
Net Profit 89.2 164.3 184.70 232.74 370.8 75.42

 

Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Polycab India Ltd 10 26.22 TBA 15.76% 166.37
Havells India Ltd 1 10.57 55.76 17.76% 59.65
Bajaj Electricals Ltd 2 8.19 60.12 8.93% 91.78
Crompton Greaves
Consumer Electricals Ltd
2 5.15 38.56 41.01% 12.60
KEI Industries Limited 2 18.21 14.01 23.94% 77.17
V-Guard Industries Ltd 1 3.10 55.35 17.91% 17.61

 

IPO Details:

Details Info
Issue Opens on Will be Updated
Issue Closes on:. Will be Updated
Issue Price Will be Updated
Face Value Rs.10
Minimum Lot Will be Updated
Minimum Investment Will be Updated
Issue Constitutes Will be Updated
Issue Size Will be Updated
Market Cap Will be Updated
Listing at NSE & BSE
Equity Shares Offered Will be Updated
Equity Shares Prior 14,12,05,838
Equity Shares after the issue Will be Updated

 

Important Dates:

Finalization of Basis of Allotment Will be Updated
Initiation of Refunds Will be Updated
Credit of Equity Shares: Will be Updated
Listing Date: Will be Updated

 

Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 00:00) Shares Offered Day-1 Day-2 Day-3
QIB
NII
Retail
Employee
TOTAL

 

IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
26.22 TBA 15.76% 166.37

 

 

Check IPO Allotment Status:

Karvy Website (Click on the below Link)

http://kosmic.karvy.com:81/ipotrack/

 

Find the List of Upcoming IPOs in 2019:

Upcoming IPOs in 2019 (Click on the below Link)

https://UpcomingIPOs-in-India-2019

 

Company Contact Info:
Polycab India Limited
E-554, Greater Kailash – II
New Delhi 110 048
Tel: +91 11 2922 8574
Fax: +91 11 4105 4838
E-mail: investor.relations@polycab.com
Website: www.polycab.com

 

 

IPO Registrar Info:
Karvy Computershare Private Limited
Karvy Selenium, Tower B
Plot number 31 & 32 Gachibowli
Financial District
Nanakramguda
Hyderabad 500 032
Tel: +91 40 6716 2222
Investor grievance e-mail: polycab.ipo@karvy.com
Website: https://karisma.karvy.com