The initial public offering (IPO) of Plaza Wires will open for bidding on Friday, September 29. The company will be offering its shares in the range of Rs 51-54 per share with a lot size of Rs 277 shares and in multiples thereof. The three-day bidding for the issue will conclude Wednesday, October 4.
Incorporated in 2006, Plaza Wires manufactures and sells wires and cables. It also sells and markets LT aluminium cables and fast-moving electrical goods (FMEG) under its flagship brand ‘Plaza Cables’ and home brands such as ‘Action Wires’ and ‘PCG’.
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The company is looking to raise Rs 71.28 crore from its primary offering, which includes the entire sale of a little more than fresh equity shares of 1.32 crore equity shares. The anchor book for the issue will open Thursday, September 28. Pantomath Capital Advisors is the manager to the issue, while Kfin Technologies is the registrar for the issue.
The net proceeds from the issue shall be utilised towards the funding the capital expenditure towards setting up a new manufacturing unit for house wires, fire-resistant wires & cables, aluminum cables, and solar cables to expand the product portfolio; funding the working capital requirements and general corporate purposes.
Plaza Wires, formerly known as Navratna Wires, offers house wires, single and multi-core round flexible industrial cables and industrial cables for submersible pumps and motors up to 1.1 kv grade. It also provides other wires and cable products through third-party manufacturers.
Plaza Cables has over 1,249 authorised dealers and distributors including three branch offices each in Rajasthan, Uttarakhand, and Uttar Pradesh; one branch office in Maharashtra, four warehouses in Uttar Pradesh, Assam, Kerala and Delhi.
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Plaza Cables reported a net profit of Rs 7.51 crore with a revenue of Rs 182.60 crore for the financial year ended on March 31. Its bottomline came in at Rs 5.95 crore and Rs 4.24 crore. Revenue stood at Rs 176.94 crore in FY 22 and Rs 145.60 crore in FY21.
The company has reserved 75 per cent equity shares for qualified institutional bidders (QIBs), while non-institutional institutional (NIIs) will have 15 per cent shares reserved for them. Remaining 10 per cent shares will go to retail investors. Shares of the company will be listed on both NSE and BSE.
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