The IPO comprises of a fresh issue of up to Rs500cr by the company (Fresh Issue) and an offer for sale of up to 24,886,823 equity shares by the selling shareholders.
Polycab India Ltd (PIL), which is engaged in the business of manufacturing and selling wires and cables and fast-moving electrical goods, filed its draft red herring prospectus (DRHP) with Sebi for an initial public offering (IPO).
The IPO comprises of a fresh issue of up to Rs500cr by the company (Fresh Issue) and an offer for sale of up to 24,886,823 equity shares by the Investor Selling Shareholder, the Promoter Selling Shareholders, the Promoter Group Selling Shareholders, and the Individual Selling Shareholders, collectively referred to as the “selling shareholders”, collectively referred to as the “offered shares” and such an offer for sale.
The offer includes a reservation (Employee Reservation Portion) (which shall not exceed 5% of the post-offer equity share capital of the company).
The company proposes to utilize the net proceeds raised through the fresh issue for: (i.) Scheduled repayment of all or a portion of certain borrowings availed by the company (Rs100cr); (ii) To fund incremental working capital requirements of the company (Rs300cr); and (iii) General corporate purposes.
Kotak Mahindra Capital Company Ltd, Axis Capital Ltd, Citigroup Global Markets India Pvt Ltd, and Edelweiss Financial Services Ltd are the global co-ordinators and book running lead managers of the issue. IIFL Holdings Ltd and Yes Securities (India) Ltd are the book running lead managers.
According to a Crisil report, PIL 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.
For FY18, PIL 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, estimated at Rs52,500cr based on manufacturers realization (Crisil).
Apart from wires and cables, PIL also manufactures and sells FMEG such as electric fans, LED lighting and luminaires, switches and switchgears, solar products and conduits, and accessories.