Plaza Wires IPO: Plaza Wires IPO opened for public subscription on Friday, September 29, 2023, and will close on Thursday, October 5, 2023. The bidding for anchor investors concluded on Wednesday, wherein the company collected Rs 20 crore. The price band for its public issue at Rs 51-54 per equity share of face value Rs 10 each. Ahead of the public issue, Plaza Wires shares’ grey market premium (GMP) rose 28%.
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The IPO consists of the fresh issue of 13,200,158 shares aggregating up to Rs 71.28 crore. For potential investors, the bidding starts at a minimum of 277 equity shares, with subsequent bids in multiples of 277 equity shares. The shares are likely to get credited on Thursday, October 12, 2023, and listed on stock exchanges on Friday, October 13, 2023, according to reports. The company intends to use the net proceeds from the IPO to fund 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 and general corporate purposes.
Plaza Wires (PWL) is involved in the business of manufacturing and selling wires along with selling and marketing of LT aluminum cables and fast-moving electrical goods (FMEG). The company’s product mix includes products of different types of wires and cables, and FMEG such as electric fans, water heaters, switches, and switch gears, PVC insulated electrical tape, and PVC conduit pipe & accessories. The company has a network of 1,249 authorized dealers and distributors spread across pan India and C&F agents in Punjab.
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Stoxbox recommends Avoid: “On the upper price band, the issue is valued at a P/E of 22x based on FY2023 earnings which prices in most of the positives of the company. Moreover, it is important to note that Plaza Wires. operates in an industry which has high raw material volatility (which is in an uptrend over the years). Additionally, the business operates in a highly competitive industry with multiple big players which can challenge the pricing power of the company. Thus, considering the above factors, we recommend an ‘Avoid’ rating for the issue.”
(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
