The initial public offer (IPO) of Polycab India received bids for 1.25 crore shares today, 5 April 2019, as per the National Stock Exchange of India (NSE) website data at 17:30 IST. The issue was subscribed 0.71 times.

The issue opened for subscription today, 5 April 2019 and closes on 9 April 2019. The price band for the issue has been fixed at Rs 533 to Rs 538 per share.

Ahead of the opening of the IPO, the board of directors of the company at its meeting held on 4 April 2019, finalised allocation of 74.54 lakh equity shares to anchor investors at Rs 538 per share.

Polycab India is engaged in the business of manufacturing and selling wires and cables and fast moving electrical goods (FMEG) under the Polycab brand. The company manufacture and sells diverse range of wires and cables and some of the key products in the wires and cables segment are power cables, control cables, instrumentation cables, solar cables, building wires, flexible cables, flexible/single multi core cables, communication cables and others including welding cables, submersible flat and round cables, rubber cables, overhead conductors, railway signalling cables, specialty cables and green wires.

The IPO consists of a fresh issue of Rs 400 crore and an offer for sale of 1.75 crore shares by the existing shareholders.

The net proceeds from the fresh issue will be utilised in funding the working capital requirements of the company to the tune of Rs 240 crore. An allocation of Rs 80 crore will be made towards repayment of certain borrowings availed by the company and rest for general corporate purposes. The company also expects to receive the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to its existing shareholders.

On a consolidated basis, Polycab India reported net profit of Rs 357.41 crore on net sales of Rs 5506.70 crore in nine-months ended December 2018.