Mumbai: IFC, the private sector investment arm of the World Bank, will offload 5 per cent stake in Polycab India in the upcoming Rs 1350-crore initial public offering (IPO) of the country's largest manufacturer of wires and cables.
Polycab IPO will open on April 5 and will close on April 9. The public issue includes a fresh issue of Rs 400 crore and an offer for sale of 17,582,000 equity shares of face value of Rs 10.
The company has set a price band of Rs 533-538 per equity share.
The company said that the proceeds from the fresh issue will be used for scheduled repayments of all or a portion of borrowings of the company. Further, these funds will also be used to fund incremental capital requirements of the company.
R Ramakrishnan, CEO, Polycab said that Rs 100 crore of the fresh issue will be used for repayment of debt. He added that going forward the company will be conservative on capital expenditure to conserve cash.
The current debt is around Rs 600 crore.
The global coordinators and book running lead managers are Kotak Mahindra Capital, Axis Capital, Citigroup Global Markets India and Edelweiss Financial Services. The book running lead managers are IIFL Holdings and YES Securities.
As part of the IPO, not less than 15 per cent of the net offer is available for allocation on a proportionate basis to non-institutional bidders. Further, a minimum of 35 per cent of the net offer will be available for retail individual bidders.
