Shares of Polycab India Ltd experienced a significant decline on Wednesday, falling 4.97% to reach a low of Rs 7,878 on the NSE. This downturn follows developments in an insolvency-related case involving Asier Metals Pvt Ltd.
NCLAT Issues Stay on Insolvency Proceedings
The company confirmed in an exchange filing that the National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, issued an order on October 9, 2026. This order effectively stayed and kept in abeyance the previous directive from the National Company Law Tribunal (NCLT), Ahmedabad Bench, which had admitted and initiated a Corporate Insolvency Resolution Process (CIRP) against Polycab India.
The insolvency proceedings stemmed from an alleged operational debt of Rs 2.79 crore owed to Asier Metals Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC).
Polycab Confident in its Position
Polycab India has expressed strong confidence in its legal standing. The company believes it has compelling grounds to challenge and set aside the NCLT's admission order, arguing that the dispute is primarily a commercial matter.
"We are of the opinion that we have a strong case with good grounds on merits, including that of it being a commercial dispute of Rs 2.79 crore, to set aside the order of admission passed by the National Company Law Tribunal, Ahmedabad (NCLT) and initiation of the Corporate Insolvency Resolution Process (CIRP) against the Company," Polycab stated.
The company further confirmed that the NCLAT order has stayed the impugned order in its entirety until further directives. The appeal is scheduled for its next hearing on October 26, 2026.
Business Operations Unaffected, Strong Financials Maintained
Despite the legal proceedings, Polycab India assured stakeholders that its business and management operations are continuing as usual. A company spokesperson emphasized that no adverse or material impact on financial or business operations is expected from the NCLT's initial order.
Polycab highlighted its robust financial health, stating that it holds a zero-debt position with substantial cash and investment liquidity. As per its audited financial statements for the year ended March 31, 2026, the company boasts a net cash position exceeding Rs 4,000 crore and a net-worth of Rs 11,682 crore. Polycab reiterated its commitment to transparency, integrity, and strong governance in its business conduct.