Polycab Shares Fall After Promoters Sell 2.24% Stake

Polycab India Ltd.'s shares extended losses for the fourth consecutive session on Friday following a large trade which saw promoters offload stake in the company.

At least 33.8 lakh shares, or about a 2.24% stake, of the company changed hands in a large trade on the NSE at Rs 6,709.35 apiece, a discount of 4% to its previous close, according to Cogencis.

Term sheet for the deal accessed by NDTV Profit showed that promoters Ajay T Jaisinghani, Akansha Punjabi, Anil Hariram Hariani, Bharat Jaisinghani, Girdhari Thakurdas Jaisinghani, Inder T Jaisinghani, Nikhil Ramesh Jaisinghani, Ramesh T Jaisinghani, and Ritika Nikhil Jaisinghani sold the stake. Buyers involved in the large trade were not known at the time of writing this report.

According to the term sheet, the promoters sold nearly 30.7 lakh shares, or 2.04% stake, in the price range of Rs 6,535.00 to 6,989.25 per share on Friday. This is at a discount of up to 6.5% against the last close of the stock.

As of March 2024, the promoter and promoter group held a 65.24% stake in the company, according to data available with BSE.

Shares of the company fell as much as 5.34% to Rs 6,616, its lowest level since June 5. It pared losses to trade 4.5% lower at Rs 6,673.5 apiece as of 10:29 a.m. This compares to a 0.39% decline in the NSE Nifty 50.

The stock has risen 21.57% on a year-to-date basis and 87.75% in the last twelve12 months. The total traded volume so far in the day stood at 13.75 times its 30-day average. The relative strength index was at 45.39.

Twenty one out of 31 analysts tracking the company maintain a 'buy' rating, six recommend a 'hold,' and four suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 0.1%.