Polycab India promoters sell 1.5% stake in block deal worth ₹1,740 crore

Electrical goods company Polycab IndiaLtd's promoters sold 1.5% of the company’s equity in a block deal on Thursday (September 25), raising ₹1,740 crore. The deal was executed at an average price of ₹7,458 per share.

JP Morgan Fund ICVC emerged as the largest buyer, acquiring nearly 1% stake for ₹1,107 crore. Morgan Stanley Asia purchased 2.9 lakh shares for ₹219 crore. Other buyers in the block deal included HDFC Standard Life Insurance, Societe Generale, and Kotak Mahindra Life Insurance Company, among others.

Also Read: Polycab Q4 Results: Revenue growth of 25%, margin expands; FMEG business breaks-even

The sellers in the transaction included promoter group members — Inder T Jaisinghani, Ramesh T Jaisinghani, Ajay T Jaisinghani, Girdhari Thakurdas Jaisinghani, Nikhil Ramesh Jaisinghani and Bharat Jaisinghani, as per sources.

Polycab India reported a 50% increase in its June quarter net profit at ₹600 crore from the previous year, above the Street estimates of ₹518 crore. Its revenue increased 25.7% to ₹5,651 crore from the previous year.

Polycab's earnings before interest, taxes, depreciation and amortisation (EBITDA) were up 47.1% at ₹858 crore while its EBITDA margins expanded to 14.5% from 13.5% in the year-ago period.

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

Shares of Polycab India Ltd ended at ₹7,405.55, down by ₹127.65 or 1.69%, on the BSE today, September 25.