The shares of leading cables and wire makers KEI Industries, Polycab and Havells plunged on March 20 after Adani Group announced its entry into the segment by incorporating a new joint venture 'Praneetha Ecocables'.
In an exchange filing released in the post-market hours on March 19, Adani Group's flagship company Adani Enterprises announced that its wholly-owned subsidiary Kutch Copper has completed the incorporation of a joint venture company 'Praneetha Ecocables Limited'. Kutch Copper and Praneetha Ventures will each hold 50 percent equity stake in the newly formed company.
The new joint venture will aim at manufacturing, marketing, distributing, buying and selling of metal products, cables and wires. Adani Enterprises shares were trading in the green during early trade, after the announcement at Rs 2,326 apiece on March 20.
Notably, this comes days after the Aditya Birla Group announced that its flagship company UltraTech Cement will enter the segment by setting up a wires and cables plant in Bharuch, Gujarat, with an expenditure of Rs 1,800 crore over next two years.
Polycab, a leading company in the segment, saw its share price decline by nearly 9 percent to trade at Rs 4,972 apiece on March 20. This comes a day after the stock surged nearly 5 percent to close at Rs 5,438.40 on March 19. The stock has so far fallen over 32 percent in the last one year.
KEI Industries shares meanwhile crashed over 13 percent to hover around Rs 2,855.15 apiece. The stock has seen significant downturn in recent days, hitting a 52-week low of Rs 2,902.85 per share in February this year. It has so far declined nearly 36 percent in the last one year.
Shares of Havells were down over 5 percent to trade at Rs 1,479 apiece. Notably, the stock had significantly surged the previous day after the government exempted key components from mandatory BIS certification, easing supply concerns ahead of an expected harsh summer. The stock has so fallen nearly 12 percent in the last one year.
RR Kabel shares fell nearly 2 percent to trade at Rs 903 apiece. This comes a day after the stock hit a 52-week low of Rs 854 per share. It is down over 37 percent in the last one year. Finolex Cables also tumbled over 4 percent to trade at Rs 830 per share.
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