Polycab shares in focus after equity worth ₹1,695 crore changes hands in larger than expected block deal

As many as 22.73 lakh shares, or 1.51% equity, worth ₹1,695 crore of Polycab India Ltd. changed hands at ₹7,458 per share in a block deal window on Thursday, September 25.However, on Wednesday, CNBC-TV18 reported, citing sources that promoter entities of the electrical goods company were expected to offload up to 0.81% of the company’s equity via a block deal, with an estimated offer size of ₹887.6 crore.

Sources said the transaction’s floor price was set at ₹7,300 apiece.

The sellers in the transaction inclined Promoter Group Members – Inder T. Jaisinghani, Ramesh T. Jaisinghani, Ajay T. Jaisinghani, Girdhari Thakurdas Jaisinghani, Nikhil Ramesh Jaisinghani and Bhrata Jaisinghani, as per sources.The promoters will observe a 90-day lock-in period on further share sales post the block deals, the sources added.

As per the stock exchanges, the promoters held a total of 51.07% stake in the company at the end of the June quarter. Of this, Inder, Ramesh, Ajay T. Jaisinghani and Girdhari Thakurdas Jaisinghani held 12.04%, 8.7%, 9.55%, and 8.53% respectively.Meanwhile, Nikhil Ramesh Jaisinghani and Bharat Jaisinghani held 3.39% and 3.47% stake, respectively.

Polycab India reported a 50% increase in its June quarter net profit at ₹600 crore from the previous year, above 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) was up 47.1% at ₹858 crore while its EBITDA margins expanded to 14.5% from 13.5% in the year-ago period.

Polycab shares were down 1.1% at ₹7,450.5 apiece at 9.45 am on Thursday, September 25. The stock has gained 44.5% in the last six months.

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