The initial public offer (IPO) of Plaza Wires is turning out to be one of the best this year in terms of investor response. The issue was subscribed a massive 100 times so far on the last day of the bidding process. This was led by massive subscriptions from retail investors at 302 times.
The NII category was also not too behind with 247 times subscription. The QIB part was the least booked at 10.69 times. The issue closes today.
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According to market sources, the company’s shares are trading with a premium of Rs 23 in the unlisted market. The company is offering its shares at Rs 51-54 apiece.
Analysts advised investors to subscribe to the issue on the company’s competitive strengths which include a product portfolio focused on various customer segments, a distribution network, experienced management, and a dedicated employee base.
The IPO comprises a fresh equity issue of 1.32 crore, aggregating up to Rs 71.2 crore. Investors can bid for a minimum of 277 shares in one lot and in multiples thereafter.
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About 75% of the offer is set aside for qualified institutional buyers, 15% is reserved for non-institutional investors, and 10% for retail investors.
Plaza Wires is engaged in the business of manufacturing and selling of wires, and selling and marketing of LT aluminum cables and fast-moving electrical goods under its flagship brand “Plaza Cables”.
In 2021, it launched a line of house wire under the brand “Action Wires” for products at economical price range.
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The company’s product mix includes different types of wires and cables, and fast-moving electrical goods such as electric fans, water heaters, switches and switchgear, Poly Vinyl Chloride insulated electrical tape and Poly Vinyl Chloride conduit pipe and accessories.
Net proceeds from the issue are proposed to be utilised towards funding the capex for setting up of a new manufacturing unit for house wires, fire-resistant wires and aluminum cables to expand its product portfolio. Further, the proceeds will also be used for funding working capital requirements and other general corporate purposes.
Pantomath Capital Advisors is the sole book-running lead manager to the issue and KFin Tech is the registrar.
