Several cable-wire stocks, including KEI, Polycab, RR Kabel, and Finolex, declined in the morning trade on the BSE on Friday, 4 September, amid concerns over increased competition in the sector as Aditya Birla Group readies to enter the wires and cables segment with an ₹1,800-crore investment.
Shares of KEI Industries crashed over 8%, while those of Polycab India plunged 6% in early deals on the BSE. Shares of Finolex Cables and R R Kabel dropped 5% each. Havells India share price dropped over 3% during the session.
Ultravolt impact
Shares of cable-wire companies tumbled as concerns increased that the new business launched by the Birla Group could erode the market reach of current players.
Birla Group Chairman Kumar Mangalam Birla has announced that the new business of the Birla Group has been named and will be the second-largest player in the wires segment by capacity at launch.
It will be housed under the group’s cement unit, UltraTech. The new business will aim to become one of India’s top two wire-and-cable players within five years, according to the group chair.
The launch of the new cable-wire business comes after a series of new bets by the group, including its entry into paints with Birla Opus, jewellery retail through Indriya and B2B e-commerce through Birla Pivot, as well as investments and acquisitions in newer areas.
Cable stocks plunge
KEI Industries share price crashes by over 8%
The stock opened at ₹5,069.95 against its previous close of ₹5,292.50 and crashed more than 8% to hit an intraday low of ₹4,855.75.
Polycab India share price plunged 6%
share price plunged almost 6% to an intraday low of ₹8,308.55 in the morning session, compared to the previous close of ₹8,825.
Havells India share price drops 3%
share price opened at ₹1,177 against the previous close of ₹1,200 and crashed over 3% to an intraday low of ₹1,157.60.
Finolex Cables shares
share price also suffered the selling pressure, falling 5% from its previous close of ₹1,273.15 to hit an intraday low of ₹1,210.40.
R R Kabel share price
share price crashed 5% in intraday trade. The stock opened at ₹2,526.30 against its previous close of ₹2,618.80 and hit an intraday low of ₹2,488.60.
UltraTech Cement shares rise
While cable-company shares crashed, shares of UltraTech Cement, which will house UltraVolt, climbed nearly 2% during the session. The stock opened at ₹11,421.95 against its previous close of ₹11,223.45 and touched an intraday high of ₹11,438.80.
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