Polycab Shares Slip After ₹1,695 Crore Promoter Block Deal

September 25, 2025 — Shares of Polycab India Ltd came under pressure in trade after members of the promoter group executed large block deals worth about ₹1,695 crore.

In total, they offloaded ~21.9–22.7 lakh shares (≈1.50%–1.51% of equity) at ₹7,300–₹7,458 per share, roughly a 3% discount to Wednesday’s close.

The promoters of the company have also committed to a 90-day lock-up following the sale.

Key highlights

• Deal size & price: ~1.5% of equity (≈22 lakh shares), ₹1,695 crore consideration at ₹7,300–₹7,458/share (≈3% discount).

• Sellers: Jaisinghani family members including Inder, Ajay, Ramesh, Girdhari Thakurdas, and Bharat Jaisinghani, among others.

• Lock-in: Promoter group barred from additional sales for 90 days, easing near-term supply concerns.

• Price action: Stock fell to ~₹7,431 intraday, later closing near ₹7,407 (down ~1.66%)

• Momentum context: Despite today’s dip, Polycab is +46% in 6 months and +6% in 1 month; up ~11% YoY and 800%+ in 5 years.

Multiple promoter group entities sold ~21.9–22.7 lakh shares, translating to ~1.5–1.51% of the company’s paid-up equity. The block deals were done between ₹7,300 and ₹7,458 per share - about 3% cheaper than Wednesday’s close. Named sellers include Inder T. Jaisinghani (MD) and other Jaisinghani family members.

Stock reaction

The stock slipped on open, hitting a low near ₹7,431, before stabilising around ₹7,450–₹7,510 through the day. The move follows two sessions of declines after the stock recently notched a 52-week high of ₹7,714.In the short term, the extra shares from the block deal could put some pressure on the stock. But the 90-day lock-up helps by ensuring no more sales soon.

Shareholding & promoter stance

As per June 2025 shareholding, promoters & promoter group held ~63%; post this transaction, their stake reduced marginally but remained substantial, keeping control intact.

Why this matters

• Float & liquidity: A larger free float can improve liquidity and indexability, attracting broader institutional participation.

• Supply overhang contained: The 90-day lock-in curbs immediate secondary supply, which is typically supportive for price discovery.

• The big picture stays the same :Demand is strong, margins are solid, and Polycab is still a leader in its sector. This block deal is more of a short-term market event, not a change in the company’s long-term story.

Polycab posted robust Q1 FY26 results:

• Revenue: ₹5,906 crore (+25% YoY)

• Net profit: ₹600 crore (+49% YoY)

• EBITDA: +~47% YoY; margin ~14.5%

The company continues to lead India’s wires & cables market while scaling Fast-Moving Electrical Goods (FMEG) and B2B Vertical.

1. Bulk/block disclosures: Identify who accumulated the shares (long-only funds vs. HFT/proprietary).

2. Follow-through on volumes: Delivery % and VWAP behaviour in coming sessions.

3. Q2 FY26 commentary: Growth visibility, commodity cost pass-through (copper/aluminium), and FMEG margin trajectory.

Q: Is the promoter selling a red flag?
A: Not necessarily. Given the modest discount and a 90-day lock-up, this appears to be a liquidity/portfolio move rather than a signal of business stress.

Q: What’s the updated promoter stake?
A: June 2025 stood at ~63%; after ~1.5% sale, it reduces marginally but stays well above 60% (exact figure to reflect in the next shareholding filing).

Q: How has the stock performed recently?
A: +46% in six months, +6% in one month, ~11% over a year, and 800%+ in five years

Sahi’s Take

The stock has dipped mainly because more shares are now available after the block deal. The 90-day lock-up and strong earnings are good signs for stability.
For investors, the company’s long-term story still looks strong. Traders can watch for the price moving back above VWAP, rising delivery volumes, and updated ownership data before taking fresh positions.