Polycab India made an impressive debut on Tuesday, listing with a premium of 17.66 percent at Rs 633 a share on NSE over its issue price of Rs 538 per share. Further, during the day the stock surged over 20 percent to touch an intraday high of Rs 661.50 apiece.
The wires and cables manufacturer's Rs 1,345-crore public issue saw a subscription of 51.96 times. The IPO (initial public offering) was open for subscription between 5 to 9 April at a price band of Rs 533-538 per share. It included an offer for fresh issue of equity shares aggregating up to Rs 400 crore and an offer for sale of up to 1,75,82,000 equity shares.
The proceeds of the issue were to be used for debt repayment and working capital requirements. Analysts and stock brokerages had a positive outlook for the IPO and recommended subscription considering the company's attractive valuation, strong financials, and sales distribution network.
Polycab India is in the business of manufacturing and selling wires, cables and fast moving electrical goods (FMEG). In 2009, the company diversified into the engineering, procurement and construction business. In 2014, it entered the FMEG segment where it started offering products such as electric fans, LED lighting, switches and switchgears, solar products and conduits and accessories.