Plaza Wires IPO Fully Subscribed Within 2 Hours, Cheers Or Regret

Plaza Wires’ initial public offering (IPO) opened for subscription on Friday and was fully subscribed in just 80 minutes. 

The allocation of shares will be finalized on October 9th, and the listing will take place on October 12th. Analysts have advised investors to subscribe to the issue based on the company’s competitive strength.

Plaza Wires’ IPO, which consists of 1.32 crore shares, has been fully subscribed at 11:20 AM. There was an oversubscription of 6.64 times in the retail investor category. 

The portion for non-institutional investors saw a subscription of 37%. So far, there have been no bids from eligible institutional buyers.

The IPO includes fresh equity issuance of 71.2 crore INR with shares priced at 51-54 INR each. Investors can apply for a minimum of 277 shares in one lot and then in multiples of several shares. 

Approximately 75% of the offering is reserved for eligible institutional buyers, 15% for non-institutional investors, and 10% for retail investors.

The allocation of shares for the IPO will be finalized on October 9th, and listing is scheduled for October 12th. The proposal is to list equity shares on both the BSE and NSE stock exchanges.

The company plans to utilize the proceeds from the IPO to expand its product portfolio, establish a new manufacturing unit for House Wire, Fire-Resistant Cables, and Aluminum Cables, and meet working capital requirements and other general corporate purposes.

For the fiscal year ending in March 2023, the company reported a 3% increase in revenue to 183 crore INR, while net profit increased by 27% to 7.5 crore INR.

Plaza Wires is primarily involved in the manufacturing and sale of wires under its flagship brand Plaza Cables, as well as the sale and marketing of LT Aluminum Cables and fast-moving electrical goods. 

In 2021, the company launched the Action Wires brand under an affordable price range for its product series.

Plaza Wires Limited was established in the year 2006, and the company manufactures wires, Low Tension (LT) aluminum cables, and Fast-Moving Electrical Goods (FMEG). 

Its product portfolio includes household wires, flexible industrial cables, and industrial cables for submersible pumps and motors up to 1.1 kV grade. 

Plaza Wires also produces LT power control cables, TV dish antenna coaxial cables, telephone and switchboard industrial cables, LAN networking cables, closed-circuit television cables, and solar cables through third-party manufacturers. 

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The company has over 20 sales and service centers spread across 6 states. Plaza Wires Limited has recently launched miniature circuit breakers and distribution boards (DBs) as well. 

The company has a network of more than 1,249 authorized dealers and distributors, along with three branches and four warehouses.