Promoters of Polycab India Ltd are preparing to divest a portion of their holdings in a block deal valued at approximately ₹887–₹888 crore. The planned sale, involving around 1.2 million shares at a floor price of ₹7,300 per share, equates to about 0.81% of the company’s equity. Market participants expect the transaction to attract attention, given its size and implications for promoter shareholding.
According to sources familiar with the matter, the floor price represents a discount of roughly 3.1% relative to Polycab’s most recent trading levels. This discount is intended to entice buyers and ensure liquidity in the block deal. The exact timing of the deal is slated for a Thursday trading session, although confirmation from Polycab’s management or promoter group has yet to be disclosed in official filings.
Polycab shares had seen significant trading interest ahead of the announcement, with analysts noting that promoter stake reductions often trigger volatility in share prices. Investors tend to interpret such moves as either a liquidity play by promoters or a signal that the promoters wish to rebalance holdings.
The company, well known for its leadership in the Indian wires and cables sector, recently posted solid financial results. Its performance has been underpinned by strong demand, expanding operations, and improving margins. Despite this, the decision by the promoters to pare back some ownership is being viewed by many as a routine capital markets manoeuvre rather than a reflection of business stress.
At present, Polycab’s promoter holdings stand at about 63% of the total share capital. The reduction of around 0.81% will still leave the promoter group with a strong controlling interest, though it will slightly dilute their ownership. Stake sales of this nature typically require a lock-in period or other regulatory disclosures, especially when they involve promoter or promoter group entities; however, specific lock-in terms for this transaction are not yet clear.
Analysts suggest that the success of this block deal will depend heavily on investor appetite at that price level. Given the discount and promoter status of the shares, demand could be strong, but execution may still affect the stock’s short-term movement.
Some market watchers caution that these deals may lead to downward pressure on the stock if speculative selling follows. While the deal size is large, the remaining promoter stake remains substantial, and the move appears consistent with standard capital markets activity. Investors will be observing closely both the execution of the sale and any subsequent impact on the stock’s trading behaviour.
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