Polycab Block Deal: Promoters to sell up to 2.04% stake for Rs 2,005.9 crore

Polycab Block Deal: Promoters to sell up to 2.04% stake for Rs 2,005.9 crore

Promoters of electrical goods company Polycab India Ltd are likely to offload up to 2.04% of their stake in the company through a block deal, sources privy to the developments told CNBC-TV18.

The offer price range for this transaction is set between ₹ 6,535 and ₹6,989.25 per share, representing a discount of up to 6.5% on the current market price (CMP), sources in the know told CNBC-TV18.

At the lower end of the price band, the offer size is estimated to be ₹2,005.9 crore. Additionally, there will be a 90-day lock-in period during which no further shares can be sold by the promoters, sources close to the development said.

Polycab India reported a 29% year-on-year (YoY) rise in consolidated net profit at ₹553 crore, compared to ₹428 crore in the year-ago period. The company's revenue from operations also jumped 29% YoY to ₹5,592 crore as against 4,324 crore in the corresponding period of last fiscal.

Both the company's topline and bottomline were higher than CNBC-TV18's estimates of ₹4,979 crore and ₹480 crore. Operating profitability is higher by 10% to ₹762 crore, much better than the CNBC-TV18's poll was at ₹693 crore. The operating margins, however, reduced by 30 basis points to 13.6%, while the estimates were at 13.9%.

Shares of Polycab India Ltd ended at ₹6,989.85, down by ₹192.70, or 2.68% on the BSE.