IFC-backed electrical goods maker Polycab files for $270m IPO | #VentureCanvas
Swaraj Singh Dhanjal | DealStreetAsia – IPO
Polycab India Ltd, the International Finance Corp-backed maker of wires and cable and consumer electrical goods, on Wednesday filed the draft papers for its initial public offering (IPO).
According to the company’s draft red herring prospectus, the proposed IPO will comprise of a fresh capital raise of Rs500 crore, while IFC and promoters of the company are looking to sell 24.88 million shares through an offer for sale.
The total size of the share sale is expected to be around Rs2,000 crore (approximately $270 million), said a person aware of the company’s plans, speaking on the condition of anonymity. Mint reported in September that Polycab was soon going to file its draft IPO papers.
Polycab intends to use the fresh capital to repay all or a portion of certain borrowings availed by the company and to fund incremental working capital requirements.
IFC, which invested Rs401.75 crore in the company in 2009, holds a 15% stake in the company and is looking to sell close to half of its stake.
Investment banks Kotak Mahindra Capital Co. Ltd, Axis Capital Ltd, Citigroup Global Markets India Pvt. Ltd and Edelweiss Financial Services Ltd are managing the polycab share sale.
Polycab manufactures and sells a diverse range of wires and cables and the key products in the wires and cables segment include power cables, control cables, instrumentation cables, solar cables, building wires, flexible cables, communication cables.
In 2009, the company diversified into the engineering, procurement and construction (EPC) business, which includes the design, engineering, supply, execution and commissioning of power distribution and rural electrification projects. While in 2014, it diversified into making fast moving electrical goods such as electric fans, LED lighting and luminaires, switches and switchgears, solar products and conduits and accessories.
This article was first published on livemint.com
The post IFC-backed electrical goods maker Polycab files for $270m IPO appeared first on DealStreetAsia.