As expected, the listing of Polycab India was fantastic. The stock got listed on the BSE at Rs.633 v/s the IPO price of Rs.538, going up some over 17.5%. And it is currently quoted at Rs.653’ clearly a winner on the new listings.
The company, which makes electric wires and cables with a 12% all-India market share, got a very strong response to its IPO, which was subscribed 52 times. It was driven mainly by a strong subscription from institutional and non-institutional bidders.
In our New Issue Analysis, we had said, “Market leadership, strong brand, promoter-cum-professional management, improving financials and attractive pricing make this issue of Polycab India a subscribe, as it is capable to give decent returns if held for 12 months, as the sector is now catching up on PE expansion, seen across stocks especially market leader Havells’ PE of 58x.”