Polycab India promoter group launches block deal; looks to raise around $100 million via small stake sale

The share price of Polycab India Ltd has risen by nearly 50 per cent in the last six months.

The promoter and promoter group family members of leading wire and cable manufacturer Polycab India Ltd have launched a block trade to offload a small, minority stake and raise around $100 mn or Rs 887 crore, multiple industry sources in the know told Moneycontrol

"The promoter group family members are looking to dilute around 0.8 per cent stake," said one of the persons above.

As per the latest exchange date, the promoter group holds a 63.01 percent stake and the market cap of the firm at the end of the day's trade on September 24 was Rs 1,13,397.22 crore.

A second person told Moneycontrol, "Rs 7300/share is the floor price for the proposed block deal, which is a 3.09 per cent discount to the last closing price."

A third person said investment bank Jefferies is acting as the advisor on the proposed transaction.

A fourth person added that as per the deal terms, the promoter group will observe a 90 day lock-up on any further share sales following the proposed block trade.

All four persons spoke to Moneycontrol on the condition of anonymity.

Email queries have been sent to Polycab India and Jefferies, but an immediate comment couldn't be elicited from them. This article will be updated as soon as we hear from the parties.

The share price of Polycab India Ltd has risen by nearly 50 per cent in the last six months.

Incidentally, last year, on June 27, Moneycontrol had reported that the Polycab India promoter group launched a block deal to sell around 2.04 per cent stake for up $257 million (at the upper end of the price range). The report had added that the transaction was a liquidity event for the promoter group.