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:
Polycab 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:
- Mr. Inder T. Jaisinghani (Designation: Chairman and Managing Director)
- Mr. Ajay T. Jaisinghani (Designation: Whole-Time Director)
- 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 | 31st Dec 18 |
|---|---|---|---|---|---|---|
| Revenue | 3993.9 | 4712.4 | 5747.3 | 6122.2 | 6985.9 | 5561.05 |
| Net Profit | 89.2 | 164.3 | 184.70 | 232.74 | 370.8 | 358.2 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Polycab India Ltd | 10 | 26.22 | 20.51 | 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 | 5th April 2019 |
| Issue Closes on:. | 9th April 2019 |
| Issue Price | Rs.533 – 538 |
| Face Value | Rs.10 |
| Minimum Lot | 27 Shares |
| Minimum Investment | Rs. 14,526 |
| Issue Constitutes | 16.83% |
| Issue Size | Rs. 1346 cr ($192 Million) |
| Market Cap | Rs. 7997 cr ($1.14 Billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 74,34,944 |
| Equity Shares Offered (OFS) | 1,75,82,000 |
| Total Equity Shares Offered (Fresh + OFS) | 2,50,16,944 |
| Equity Shares Prior to the Issue | 14,12,05,838 |
| Equity Shares after the issue | 14,86,40,782 |
Also Read: How to know whether IPO is a Good IPO or a bad IPO?
Important Dates:
| Finalization of Basis of Allotment | On or before 12th April 2019 |
| Initiation of Refunds | On or before 15th April 2019 |
| Credit of Equity Shares: | On or before 16th April 2019 |
| Listing Date: | On or before 18th April 2019 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 50,04,328 | 1.96 | 3.60 | 92.43 |
| NII | 37,37,535 | 0.08 | 0.70 | 110.4 |
| Retail | 87,20,914 | 0.27 | 1.51 | 4.33 |
| Employee | 1,75,000 | 0.46 | 1.77 | 3.18 |
| TOTAL | 1,76,37,777 | 0.71 | 1.94 | 51.80 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 26.22 | 20.51 | 15.76% | 166.37 |
| Check IPO Allotment Status: |
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Karvy Website (Click on the below Link)http://kosmic.karvy.com:81/ipotrack/ |
| Find the List of Upcoming IPOs in 2019: |
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Upcoming IPOs in 2019 (Click on the below Link)https://UpcomingIPOs-in-India-2019 |
| Company Contact Info: |
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| 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 |
