“Plaza Wires Limited IPO: the soldering of Investment Opportunities”

plaza wire limited IPO

Overview

Introduction:
Incorporated in 2006, Plaza Wires Limited IPO specializes in manufacturing and selling wires, LT aluminium cables, and fast-moving electrical goods (FMEG) under its flagship brand “PLAZA CABLES.” Additionally, it offers products under home brands like “Action Wires” and “PCG.”

Product Range:
Plaza Wires primarily focuses on wires and cables, including house wires, single and multicore round flexible industrial cables, and industrial cables for submersible pumps and motors up to the 1.1kv grade. Furthermore, the company provides various other wire and cable products such as LT power control cables, TV dish antenna co-axial cables, telephone and switchboard industrial cables, computer and LAN networking cables, close circuit television cables, and solar cables. Additionally, Plaza Wires offers PVC insulated tape and PVC conduit pipe and accessories through third-party manufacturers.

After-Sales Service:
To enhance customer satisfaction, Plaza Wires has established partnerships with over 20 service centers across multiple regions, including Uttar Pradesh, Uttarakhand, Jammu and Kashmir, Punjab, Haryana, and Tamil Nadu. These service centers provide after-sales support for electric fans.

Product Portfolio Expansion:
In 2021, Plaza Wires Limited IPO embarked on an expansion strategy by diversifying its product portfolio. This expansion included the launch of miniature circuit breakers and distribution boards (DB) in both north and south Indian regions, showcasing the company’s commitment to growth and innovation.

PLAZA WIRES LIMITED IPO

Plaza Wires Limited IPO Details

Face Value₹10 per share
Price Band₹51 to ₹54 per share
Lot Size277 Shares
Total Issue Size13,200,158 shares
(aggregating up to ₹71.28 Cr)
Fresh Issue13,200,158 shares
(aggregating up to ₹71.28 Cr)
Listing AtBSE, NSE

Plaza Wires IPO Timeline

IPO Open DateFriday, September 29, 2023
IPO Close DateThursday, October 5, 2023
Basis of AllotmentTuesday, October 10, 2023
Initiation of RefundsWednesday, October 11, 2023
Initiation of RefundsWednesday, October 11, 2023
credit of Shares to DematThursday, October 12, 2023
Listing DateFriday, October 13, 2023

Key Performance Indicator

KPIValues
P/E (x)21.95
Market Cap (₹ Cr.)236.26
ROE14.15%
ROCE15.57%
Debt/Equity0.75
EPS (Rs)2.46

Plaza Wires IPO Lot Size

ApplicationLotsSharesAmount
Retail (Min)1277₹14,958
Retail (Max)133601₹194,454
S-HNI (Min)143,878₹209,412
S-HNI (Max)6618,282₹987,228
B-HNI (Min)6718,559₹1,002,186
PLAZA WIRES LIMITED IPO

Company Financials

Period Ended31 Mar 202131 Mar 202231 Mar 2023
Assets99.28104.17112.10
Revenue145.60176.94182.60
Profit After Tax4.245.957.51
Net Worth39.4845.5253.08
Reserves and Surplus35.6614.9622.53
Total Borrowing43.3040.0939.68
Amount in ₹ Crore

Objects of the Issue

Utilization of Net Proceeds:
The net proceeds from the issue will be allocated for the following purposes:

  1. Expanding Product Portfolio: Funding the capital expenditure required for establishing a new manufacturing unit. This unit will focus on the production of house wires, fire-resistant wires and cables, aluminum cables, and solar cables. This strategic expansion aims to diversify and enhance the company’s product portfolio.
  2. Working Capital: Allocating funds to meet the working capital requirements of the company. This financial resource will support day-to-day operations, ensuring smooth and efficient business processes.
  3. General Corporate Purposes: Utilizing a portion of the proceeds for general corporate purposes. This may include various operational and administrative needs that contribute to the overall growth and stability of the company.
Owner of Plaza Wires

Plaza Wires IPO Review (Apply)

Competitive Landscape: Plaza Wires operates within a fiercely competitive sector, characterized by the presence of established industry players. Despite this competition, the company has demonstrated consistent growth in both its top-line and bottom-line performance during the reported periods.

Issue Valuation: The valuation of the issue seems to be in line with the company’s earnings for the fiscal year 2023, suggesting that it is fully priced based on its financial performance.

Investment Perspective: Given Plaza Wires’ ambitious expansion plans and growth trajectory, investors with a medium to long-term investment horizon may consider allocating their funds. This strategic approach could potentially yield rewarding returns over time.

Renewable energy expo - Plaza wires

Plaza Wires IPO Subscription Status (Bidding Detail)

  • The Plaza Wires IPO has received significant investor interest.
  • The overall subscription rate stands at 4.80 times.
  • The retail category has shown exceptional enthusiasm, with a subscription rate of 27.28 times.
  • The QIB category is yet to receive subscriptions.
  • The NII category has subscribed 4.80 times.

Check Day by Day Subscription Details (Live Status)

Plaza Wires Limited IPO GMP

  • Plaza Wires IPO’s last Grey Market Premium (GMP) is ₹12, as of October 1st, 2023, at 11:24 AM.
  • Considering the price band of ₹54.00, the estimated listing price for Plaza Wires IPO is ₹66.00 (capital price + today’s GMP).
  • This implies an expected percentage gain per share of 22.22%.
  • In the retail category, Plaza Wires IPO is subject to Sauda at ₹2,500.
  • Small HNI investors in Plaza Wires IPO are subject to Sauda at ₹35,000.

check day by day GMP Details(Live Status)

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FAQs for Plaza Wire Limited IPO

Plaza Wires Limited IPO Opening Date ?

September 29, 2023 to October 5, 2023

Plaza Wires Limited IPO Price Band ?

₹51 to ₹54 per share

Plaza Wires Limited IPO Retail Cost per lot ?

₹14,958

Plaza Wires Limited IPO Subscription ?

The overall subscription rate stands at 4.80 times

Plaza Wires Limited IPO GMP ?

₹12 (22.22%)
disclaimer:

The content provided here should not be interpreted as an invitation or solicitation to buy or sell securities, nor should it be regarded as guidance for such actions. All material presented is intended solely for educational and informational purposes and should not be utilized for making investment choices in any manner. It is imperative to recognize that any data shared here carries no intent to influence investment decisions. Any individual considering investment moves should first seek guidance from a qualified financial advisor, taking into account the particulars of their circumstances.

It is vital to underscore that any decisions based on the information shared here are undertaken at one’s own risk. As with all investments in the stock market, it’s important to acknowledge the inherent and unpredictable risks associated with such endeavors.

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