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    Polycab India shares list at 18% premium over issue price

    market | IST

    Polycab India shares list at 18% premium over issue price

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    Polycab India has made a strong stock market debut on Tuesday, listing at a  18 percent premium over its issue price

    Polycab India has made a strong stock market debut on Tuesday, listing at a  17 percent premium over its issue price. Polycab India shares opened at Rs 633 per share on the BSE, up 17.6 percent from the issue price of Rs 538 per share.
    Intraday, the stock rose as much as 22.67 percent to Rs 660 per share. At 10.30 AM, Polycab shares were trading at Rs 651.35 per share, up 20.82 percent from its issue price.
    Polycab Source: CNBC TV18
    The Polycab IPO, which was open for subscription between April 5-9, was subscribed 51.65 times. The IPO had a price band of Rs 533-538 per share.
    Analysts had a positive outlook for the company, and recommend buying the stock considering its attractive valuations, strong financials and distribution network.
    Polycab Source: CNBC TV18
    Phillip Capital has initiated 'buy' call on the stock with target price of Rs 718 per share considering market leadership and strong cash flow. The company expects to become debt-free in 2-3 years, with operating cash flow to be Rs 10.6 billion.
    "The strong financial performance showcased its growing strength in the industry. Strong balance sheet with a debt/equity ratio of 0.4 times and its focus to reduce debt by using IPO proceeds will strengthen its balance sheet further," said Geojit Financial Services.
    According to brokerage IndiaNivesh, the company has high cash flows and good return ratios. It is also virtually debt free which makes it a compelling investment idea. Management’s focus to diversify through FMEG (lights, switches, fans etc.) augurs well for future growth.
    Polycab manufactures and sells cables and wires such as power cables, control cables, instrumentation cables, solar cables, and others. The company has 24 manufacturing facilities and sells products to over 1 lakh retail outlets in India.
    Catch all the latest and live updates here on CNBC TV18 Market Live Blog.
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