The oversubscription for Polycab’s IPO was also the highest since HDFC AMC’s Rs 2,800-crore offering last year. At Tuesday’s closing price, Polycab is valued at Rs 9,736 crore. Some of Polycab’s listed peers include Havells India (valued at Rs 47,380 crore), Bajaj Electricals (Rs 5,910 crore), and V-Guard (Rs 9,650 crore).
Most brokerages had recommended their clients to subscribe to the IPO, citing attractive valuations relative to peers.
“The issue is priced at price-to-earnings multiple of 21.6 times (after dilution) on 2017-18 basis, compared to the average industry composite of closely comparable listed peers at 44.6 times,” said Centrum Wealth in a note.
Over FY16-18, Polycab registered revenue and profit compound annual growth rate (CAGR) of 14.2 per cent and 41.6 per cent, respectively, with average earnings before interest, taxes, depreciation, and amortisation margin of 9.7 per cent. The domestic wires and cables industry is pegged to grow at a CAGR of 15 per cent till 2023.