Polycab India promoters likely to sell 0.81% stake in block deal worth ₹888 crore

Promoter entities of electrical goods company Polycab India Ltd are expected to offload up to 0.81% of the company’s equity through a block deal, with an estimated offer size of ₹887.6 crore, sources privy to the developments told CNBC-TV18.

The floor price for the transaction has been set at ₹7,300 per share, representing a 3.09% discount to the last traded price, sources in the know told CNBC-TV18.

The sellers in the transaction include promoter group members: Inder T. Jaisinghani, Ajay T. Jaisinghani, Ramesh T. Jaisinghani, Girdhari Thakurdas Jaisinghani, Bharat Jaisinghani, Nikhil Ramesh Jaisinghani, and Anil Hariram Hariani.

Also Read: Polycab India targets mid-teen volume growth, market share gains amid rising competition

As per the terms, the promoters will observe a 90-day lock-in period on any further share sales following the block deal.

First Quarter Results

Net profit for the quarter increased by 50% from the year-ago quarter to ₹600 crore, comfortably surpassing the CNBC-TV18 poll estimate of ₹518 crore. Revenue for the quarter increased by 25.7% from last year to ₹5,906 crore. According to a CNBC-TV18 poll, the company's revenue was seen increasing by 20% from last year to ₹5,651 crore.

Polycab's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 47.1% to ₹858 crore, well above the 31% growth projection in the CNBC-TV18 poll to ₹762 crore. EBITDA margins for the quarter expanded by over 200 basis points from the year-ago period to 14.5%. A CNBC-TV18 poll had pegged the figure at 13.5%.

Also Read: Polycab India shares gain after signing BSNL deal for BharatNet project worth ₹3,000 crore

Shares of Polycab India Ltd ended at ₹7,522.40, down by ₹116.00, or 1.52%, on the BSE.