The Rs 71 Crore Initial Public Offering of Plaza Wires Limited witnessed a strong response from Retail and Non-Institutional Investors. It saw an overall subscription of 62.55 times on the third day of bidding.
The issue received bids of 59,39,88,274 shares against the offered 94,96,114 equity shares, at a price band of ₹ 51-54, according to the data available on the stock exchanges.
Retail Portion was the most subscribed with 223.82 times, followed by Non-Institutional Investors with 132.67 times, whereas Qualified Institutional Buyer Portion was subscribed 5.79 times. The issue kicked off for subscription on Friday, September 29, 2023 and will close on Thursday, October 5, 2023.
A day prior to the opening of the issue, Plaza Wires Ltd had raised Rs 20 crore from anchor investors. Investors who participated in the anchor were Chanakya Opportunities Fund, and Astorne Capital UCC-ARVEN.
Leading brokerages like Investmetz.com and Indsec Securities have given a “SUBSCRIBE” rating to the issue, citing that, at the upper price band of Rs. 54 per share, is reasonably priced with a price-to-earnings (P/E) ratio of 31.5x based on FY23 earnings (Post issue) and is in line when compared to its listed peers.
In addition, market experts are closely monitoring Plaza Wires, anticipating a positive reception from investors due to its competitive pricing and promising outlook within the sector.
Pantomath Capital Advisors Private Limited is the sole book running lead manager to the issue. The Equity Shares are proposed to be listed on BSE Limited and National Stock Exchange (NSE).
The company's product mix includes various types of wires and cables, and FMEG such as electric fans, water heaters, switches and switchgears, PVC insulated electrical tape, and PVC conduit pipe and accessories. In 2021, the company launched a line of house wire under the brand "Action Wires" for products in the low-cost range. According to a Resurgent India report quoted in its DRHP, it is one of the fastest growing manufacturers in the wires and cables industry in northern region in India, and provides extensive range of wires and cables, under its flagship brand “PLAZA CABLES” and home brands such as “Action Wires” and “PCG”.
The company’s business model engages dealer and distribution network via 1249 authorized representatives to sell and market the company's products, including sales through C&F agents, securing government bids for supply to government projects, and direct sales to infrastructure projects. It competes with listed peers which includes Cords Cable Industries Limited, Ultracab (India) Limited, V-marc India Limited, Dynamic Cables Limited, and Paramount Communications Limited.
The table below shows subscription data for all the categories of investors:
PLAZA WIRES LIMITED
Last updated on
04 Oct 2023 | 05:00:00 PM
Sr.No. Category No.of shares offered / reserved No. of shares bid for No. of times of total meant for the category
1 Qualified Institutional Buyers (QIBs) 61,96,076 3,58,59,589 5.79
1(a) Foreign Institutional Investors (FIIs) - 1,22,51,987 -
1(b) Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) - 13,72,535 -
1(c) Mutual Funds - 3,878 -
1(D) Others - 2,22,31,189 -
2 Non Institutional Investors(NIIS) 19,80,023 26,26,85,471 132.67
2.1 Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) 13,20,015 13,40,81,573 101.58
2.1(a) Corporates - 14,29,874 -
2.1(b) Individuals (Other than RIIs) - 11,55,72,156 -
2.1(c) Others - 1,70,79,543 -
2.2 Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto 10 lakh rupees) 6,60,008 12,86,03,898 194.85
2.2(a) Corporates - 2,07,750 -
2.2(b) Individuals (Other than RIIs) - 11,21,07,994 -
2.2(c) Others - 1,62,88,154 -
3 Retail Individual Investors (RIIs) 13,20,015 29,54,43,214 223.82
3(a) Cut Off - 25,43,71,316 -
3(b) Price Bids - 4,10,71,898 -
4 Employee Reserved - - -
4(a) Employee (Cut off) - - -
4(b) Employee (Price) - - -
5 Reservation PortionShareholder - - -
5(a) RPS (Cut off) - - -
5(b) RPS (Price) - - -
Total 94,96,114 59,39,88,274 62.55