Adani Enterprises Limited has announced the successful incorporation of a new joint venture company, Praneetha Ecocables Limited (PEL), through its wholly owned subsidiary, Kutch Copper Limited (KCL).
The venture, which was announced in the late hours of Wednesday afternoon, sent shockwaves through the stock prices of leading industry players like Polycab and R R Kabel in the early trading hours of Thursday. According to BSE at 10:42 am, shares of Polycab India Ltd fell by 8.32%, trading at Rs 4988.75, while R R Kabel Ltd saw a decline of 0.71%, reaching Rs 910.00.
As part of the agreement, KCL will hold a 50% equity share capital in the newly formed company, PEL, the Gautam Adani owned corporation announced in an exchange filing. Moreover, the authorised and paid-up share capital amounts to Rs 10 lakh, divided into 100,000 equity shares of Rs 10 each.
Meanwhile, Aditya Birla Group, through its flagship company UltraTech Cement, made a significant move into India’s wires and cables sector in February as it announced the planned Rs 1,800 crore investment over the next two years, which includes setting up a plant in Gujarat.
UltraTech, India's largest cement company, is expanding its presence along the construction value chain, building on the success of Birla Opus, launched last year to offer a range of building products, from decorative paints to wood finishes.
Birla's entry into the wires and cables sector has caused a stir, especially among smaller players. Shares of top manufacturers like Polycab, KEI Industries, and Havells dropped by as much as 20% on Thursday, as investors worry that Birla's massive capital expenditure could lead to margin pressure and de-rating of existing companies, particularly with many stocks currently trading at high valuations.
The venture, which was announced in the late hours of Wednesday afternoon, sent shockwaves through the stock prices of leading industry players like Polycab and R R Kabel in the early trading hours of Thursday. According to BSE at 10:42 am, shares of Polycab India Ltd fell by 8.32%, trading at Rs 4988.75, while R R Kabel Ltd saw a decline of 0.71%, reaching Rs 910.00.
As part of the agreement, KCL will hold a 50% equity share capital in the newly formed company, PEL, the Gautam Adani owned corporation announced in an exchange filing. Moreover, the authorised and paid-up share capital amounts to Rs 10 lakh, divided into 100,000 equity shares of Rs 10 each.
Meanwhile, Aditya Birla Group, through its flagship company UltraTech Cement, made a significant move into India’s wires and cables sector in February as it announced the planned Rs 1,800 crore investment over the next two years, which includes setting up a plant in Gujarat.
UltraTech, India's largest cement company, is expanding its presence along the construction value chain, building on the success of Birla Opus, launched last year to offer a range of building products, from decorative paints to wood finishes.
Birla's entry into the wires and cables sector has caused a stir, especially among smaller players. Shares of top manufacturers like Polycab, KEI Industries, and Havells dropped by as much as 20% on Thursday, as investors worry that Birla's massive capital expenditure could lead to margin pressure and de-rating of existing companies, particularly with many stocks currently trading at high valuations.
