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The initial public offering of wires and cables manufacturer Polycab India has received an overwhelming response from investors across the board. The public issue was subscribed 51.87 times on Tuesday — the final day of bidding.
The company, which plans to raise ₹1,345 crore through the IPO, received bids for over 91.49 crore shares, against the total issue size of more than 1.76 crore shares, details from the stock exchanges reveal.
The IPO, which is a fresh issue of up to ₹400 crore, and an offer-for-sale of up to 1,75,82,000 equity shares, was floated in a price band of ₹533-538 a share. International Finance Corporation (IFC), a member of the World Bank Group, will sell 5 per cent of its 15 per cent stake in this IPO.
The retail portion was subscribed 2.7 times, while the portion set aside for employees by 3.19 times. A price discount of ₹53 a share is offered to employees.
Qualified institutional portion received a mammoth response of 92 times and high net worth individuals bid for 29.43 crore shares.
Ahead of the IPO, the company had raised ₹401 crore from 25 anchor investors by allotting 74.5 lakh shares. The anchors include Nomura Trust, Theleme Master Fund, Auburn, Ashoka India Opportunities, Reliance Capital, L&T Mutual, Aditya Birla Sun Life, and Tata Mutual Fund.
Polycab will use the proceeds from the fresh issue to repay debt, fund working capital requirements and for general corporate purposes, according to its prospectus.
Kotak Mahindra Capital Company, Axis Capital, Citigroup Global Markets India, Edelweiss Financial Services, IIFL Holdings and YES Securities (India) are managing the offer.
This is the first IPO to see a subscription of more than six times in 2019. The ₹1,200-crore public issue of Metropolis Healthcare that ended last week saw a subscription of almost 5.8 times. Shares of the company are expected to be listed in the next few days.
‘Attractively priced’
According to analysts, quality companies which leave something on the table for investors will always attract good response from the investing community. On this count, Polycab IPO is attractively priced, they added.
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