Plaza Wires initial public offering (IPO), which had opened for subscription on September 29, was fully subscribed within 80 minutes of opening on Friday. The issue was subscribed over 1.27 times, with the retail portion oversubscribed over 7.71 times.
Plaza Wires IPO was reportedly booked fully 100% at 11:20 am IST on Friday. Meanwhile the category reserved for retail investors garnered a whopping 6.64 times bids. The portion for non-institutional investors (NII) was subscribed 37%.
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Analysts, as quoted by The Economic Times, advised the investors to subscribe the issue as the company’s competitive strength, which includes product portfolio, customer segment, distribution network etc., looks promising.
For the fiscal 2023, 2022 and 2021, the company reported an aggregate revenue from operations from these states were Rs 1,382.27 million, Rs 1,388.28 million and Rs 1,180.55 million, respectively.
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Plaza Wires IPO had fixed the price band of Rs 51 per equity shares, which is 5.1 times of the face value and the cap price is ₹54 per equity share, which is 5.4 times of the face value.
The issue, which will close for bidding on Wednesday, October 4, is completely a fresh issue of 13,200,158 equity shares; there is no offer for sale (OFS) component. Bids can be made for a minimum of 277 equity shares and in multiples of 277 equity shares thereafter.
The company had raised Rs 20 crore from anchor investors on Wednesday, September 27.
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The company plans to use the net proceeds from the offering to pay for the following items, including funding the capital expense for opening a new manufacturing facility to produce house wires, fire-resistant wires and cables, aluminium cables and solar cables to broaden the product line, funding the company’s working capital needs and general corporate purposes.
Plaza Wires IPO’s book-running lead manager is Pantomath Capital Advisors Pvt Ltd, while the issue’s registrar is Kfin Technologies Limited.
