Excellent Wires and Packaging lists at 5% discount to IPO price on NSE SME

Excellent manufactures a diverse range of wires and wire ropes.

Shares of Excellent Wires and Packaging were off to a weak start on its stock market debut on September 19 after listing at Rs 85, a discount of 5.56 percent over the issue price of Rs 90 per share on the NSE SME platform.

The listing is broadly in line with grey market estimates where shares were trading without a premium. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

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The Rs 12.60-crore public offer is a fresh issue of 14 lakh shares. Given the retail frenzy in the SME IPO, investors weren't too keen on the issue. Over three days, the IPO was subscribed just 20 times with retail investors being the most active, purchasing 35 times the portion reserved for them. Non-institutional investors bought 8 times the allotted quota. Qualified institutional buyers or QIBs didn't subscribe to the issue.

Incorporated in 2021, it manufactures a diverse range of wires and wire ropes. Its product offerings include Spring Steel Wire, High Carbon Wire, Galvanised Wire (GI Wire), and other wire types for various applications. The company's product portfolio is broadly categorised into three segments: Brass wires & products, steel wires & products, and packaging products.

The company plans to use the net proceeds from the fresh issue to fund several objectives, including the acquisition of land and the construction of a building, the purchase of plant and machinery, meeting additional working capital requirements, and for general corporate purposes.

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