Plaza Wires, a Delhi-based wires manufacturing company, is all set to launch its initial public offering (IPO) on September 29, 2023. The company sells wires, LT aluminum cables, and FMEG products under brands like Action Wires, Plaza Cables, and PCG. The company has a unit in Himachal Pradesh’s Baddi and plans to set up another one to expand its product portfolio.
Here are some key details that you need to know.
Plaza Wires IPO Details
Plaza Wires IPO Timeline (Tentative Schedule)
The Plaza Wires IPO will be open for subscription from September 29 to October 4, 2023. The price band of the IPO has been fixed at Rs 51-54 per share. The face value of each share is Rs 10.
The IPO comprises only a fresh issue of 1,64,52,000 equity shares by the company and there is no offer-for-sale component. Hence, the entire issue proceeds, excluding IPO expenses, will go to the company. The total size of the IPO is Rs 71.28 crore at the upper end of the price band.
The company will finalize the basis of allotment of IPO shares by October 9 and the equity shares will be credited to the demat accounts of eligible investors by October 11. The trading in its equity shares will commence with effect from October 12.
Plaza Wires IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.)* |
|---|---|---|---|---|
| Anchor Investors | 1 | 37,04,044 | 37,04,044 | 20.00 |
| Qualified Institutions | 8.35 | 61,96,076 | 5,17,39,445 | 279.39 |
| Non-Institutional Buyers | 225.35 | 19,80,023 | 44,62,07,112 | 2,409.52 |
| bNII (bids above ₹10L) | 195.08 | 13,20,015 | 25,75,09,449 | 1,390.55 |
| sNII (bids below ₹10L) | 285.90 | 6,60,008 | 18,86,97,663 | 1,018.97 |
| Retail | 288.85 | 13,20,015 | 38,12,92,716 | 2,058.98 |
| Total | 92.59 | 94,96,114 | 87,92,39,273 | 4,747.89 |
Plaza Wires IPO Anchor Investors
The company has already raised Rs 20 crore from two anchor investors on September 27, ahead of its issue opening. Chanakya Opportunities Fund I and Astrone Capital UCC-Arven bought 18.52 lakh equity shares each in the company at Rs 54 per share.
The minimum lot size of the IPO is 277 shares. The retail investors can apply for a maximum of 13 lots.
The company has reserved 75 percent of the issue for QIBs, 15 percent for non-institutional investors (NIIs), and 10 percent for retail investors.
Pantomath Capital Advisors Pvt Ltd is the book running lead manager of the Plaza Wires IPO, while Kfin Technologies Limited is the registrar for the issue.
Plaza Wires IPO Objects of the Issue
The net proceeds from the fresh issue will be utilized for the following purposes:
- Setting up a manufacturing unit for house wires, fire-resistant wires & cables, aluminum cables and solar cables to expand the product portfolio. The estimated cost of this project is Rs 24.41 crore.
- Meeting the working capital requirements of the company. The estimated amount required for this purpose is Rs 22 crore.
- General corporate purposes. The estimated amount required for this purpose is Rs 4.87 crore.
Plaza Wires IPO GMP
Plaza Wires is trading as a premium of around 42.6% which is around Rs 23(as of 5 Oct 12:30 PM) above upper price band.
Plaza Wires Company Profile
Plaza Wires,originally incorporated as Navratna Wires was incorporated in 1997 as a private limited company and converted into a public limited company in 2020. The company is engaged in the manufacturing and marketing of wires, LT aluminum cables, and FMEG products.
The company has a diversified product portfolio that includes house wires, flexible wires, submersible wires, fire-resistant wires & cables, aluminum cables, solar cables, LED lights & bulbs, fans & coolers, switches & sockets, MCBs & RCCBs, etc.
The company sells its products under three brands: Action Wires (wires), Plaza Cables (LT aluminum cables), and PCG (FMEG products). The company has a strong distribution network of over 500 dealers across India.
The company has a manufacturing unit in Baddi, Himachal Pradesh with an installed capacity of 1.5 million coils and 15 million km per annum. In FY21, the company acquired 7,902 sq m of land in Himachal Pradesh for a new unit which will add 837,000 coils and 8,700 km of capacity per annum.
Plaza Wires Financial Performance
| Period Ended | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 |
| Assets | 99.28 | 104.17 | 112.10 |
| Revenue | 145.60 | 176.94 | 182.60 |
| Profit After Tax | 4.24 | 5.95 | 7.51 |
| Net Worth | 39.48 | 45.52 | 53.08 |
| Reserves and Surplus | 35.66 | 14.96 | 22.53 |
| Total Borrowing | 43.30 | 40.09 | 39.68 |
Plaza Wires Strengths and Risks
Some of the strengths of the company are:
- Diversified product portfolio catering to various segments of the wires and cables industry.
- Strong distribution network and brand recognition in the domestic market.
- Experienced management team and skilled workforce.
- Cost-effective manufacturing unit with quality certifications.
Some of the risks involved in investing in the company are:
- Dependence on a single manufacturing unit for its operations.
- High competition from established players in the industry.
- Fluctuation in raw material prices and availability.
- Regulatory changes and environmental compliances affecting the business.
Conclusion
Plaza Wires IPO is a good opportunity for investors who are looking for a long-term investment in a growing wires and cables industry. The company has a diversified product portfolio, a strong distribution network, and a cost-effective manufacturing unit. The company’s financial performance has been improving over the years and it has plans to expand its capacity and product range.
However, investors should also be aware of the risks involved in investing in the company, such as high competition, raw material price fluctuation, and regulatory changes. Investors should also do their own research and analysis before investing in the IPO.
If you are interested in applying for the Plaza Wires IPO, you can visit the official website of the company or any of the online platforms that offer IPO services. You will need to have a demat account and a UPI ID to apply for the IPO.
We hope this article has given you some useful information about the Plaza Wires IPO. If you have any questions or feedback, please feel free to leave a comment below.
Disclaimer:
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