Plaza-Wires-Limited-IPO
Delhi-based wires manufacturing company Plaza Wires is coming up with an IPO in September. As the Indian stock markets continue to show signs of resilience, many IPOs have entered the bourses recently. Multiple IPOs have also given substantial listing gains to investors.
Plaza Wires Limited IPO will open for subscription from 29th September 2023 to 4th October 2023.
Here are all the important details of Plaza Wires Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of Plaza Wires Limited IPO are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 29th September 2023 |
| IPO Closing Date | 4th October 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of Shares | Rs. 10 per share |
| IPO Price Band | Rs. 51 – Rs. 54 per share |
| IPO Size | Rs. 71.28 crores |
| Offer for Sale | |
| Fresh Issue | Rs. 71.28 crores |
The important dates for Plaza Wires IPO
| Event | Date |
| Opening date | 29th September 2023 |
| Closing Date | 4th October 2023 |
| Allotment Date | 9th October 2023 |
| Refund Date | 10th October 2023 |
| Share Credit Date | 11th October 2023 |
| Listing Date | 12th October 2023 |
Investors can subscribe to Plaza Wires Limited IPO shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lotMaximum – 13 lots |
| Investment amount | Minimum – Rs. 14127 – 14,958Maximum – Rs. 1,94,454 |
| Shares | Minimum – 277Maximum – 3601 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investor | 10% |
| QIB (Qualified Institutional Buyer) | 75% |
| NII (Non-Institutional Bidders) | 15% |
This IPO is a fully Fresh Issue IPO. The objectives of the IPO are mentioned below,
The Indian wires and cables industry achieved significant growth, recording a 13.68% CAGR over the last five years, and its value in FY 2021 reached ₹788.00 billion. Plaza Wires Limited, belonging to this sector, is an ISO-certified company. They manufacture wires, sell LT aluminium cables, and market electrical goods under brands like “PLAZA CABLES,” “Action Wires,” and “PCG.” Their mission is to carve a niche in the domestic wire industry by offering quality products at competitive prices. In 2021, they introduced “Action Wires,” a cost-effective line of house wires. The company is a growing manufacturer in the wires and cables industry, primarily serving the northern region of India.
The range of products offered by the company includes
While most of these products are produced in-house, few products like power control cables, co-axial cables, networking cables, PVC products, and more, are manufactured through arrangements with third-party producers. They distribute these products through multiple channels, including a dealer network, government tenders, and direct sales to infrastructure projects, selecting partners based on factors like sales capabilities and market reputation.
Plaza Wires Limited’s financials are given in the table below:
| Year | Assets (Rs. in cr) | Revenue (Rs. in cr) | Profit After Tax (Rs. in cr) | EPS (Diluted) | Net worth (Rs. in cr) | Total Borrowing (Rs. in cr) |
| Mar-2023 | 112.1 | 182.6 | 7.5 | 2.5 | 53.1 | 39.7 |
| Mar-2022 | 104.2 | 176.9 | 6.0 | 2.0 | 45.5 | 40.1 |
| Mar-2021 | 99.3 | 145.6 | 4.2 | 1.4 | 39.5 | 43.3 |
(Source: RHP)
Some of the key strengths of Plaza Wires Limited IPO that investors can take note of are
| Category | Details |
| Business model | Plaza Wires Limited has an extensive network of over 1249 authorized dealers and distributors in India and prioritises them for increasing their customer base by leveraging this extensive network and strong relationships as substantial entry barriers for competitors.Plaza Wires Limited is proactively expanding its manufacturing capacity to meet rising demand for its existing product range while strategically focusing on key growth sectors like mining, shipping, power, construction, and agriculture to enhance its market share. |
| Other merits | The company has introduced a mobile application-driven loyalty program specifically designed for “Electricians & Retailers,” showcasing its commitment to technological innovation and customer engagement. |
Here are some of the risks that investors of Plaza Wires Limited IPO should know:
| Category | Details |
| Business viability and profitability | Over reliance on wires and cable sales as the primary revenue source increases vulnerability to market fluctuations and competition.A delay in placing orders for the Proposed Manufacturing Unit could result in cost and time overruns, while the company’s manufacturing concentration in Himachal Pradesh presents risks if operations encounter difficulties in that region.Involvement in government tenders and firms exposes the company to potential liability and contract disputes, with indemnities potentially falling short, while the commercialization and development of new and existing products, particularly FMEG, may face unforeseen delays and risks. |
| Other concerns | Enforcement challenges in contractual rights may arise due to issues such as inadequate stamping or lack of registration. |
As of September 27th, 2023, the grey market premium for the shares of Plaza Wires Limited IPO is Rs. 12 as per market observers. This means the shares are expected to list at a premium of Rs. 12 over the listing cap price of Rs. 54.
Plaza Wires Limited has shown a consistent increase in its financial performance and also has a Return on Capital Employed (ROCE) that is in line with most of its listed peers. However, the higher debt-equity ratio as compared to its top-listed peers should also be considered. Investors should therefore evaluate the core fundamentals of the company and its historical performance before making an investment decision.
Investors can invest in this IPO through the Fisdom app.
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