The Rs 71.28-crore public issue of Plaza Wires opened for bids on September 29. The company raised Rs 20 crore from two anchor investors a day before the IPO. The book-running lead manager for the issue is Pantomath Capital Advisors Pvt Ltd, while Kfin Technologies is the registrar.
Here are 10 things you should know before subscribing to the offer:
1. IPO Dates
The IPO opened for subscription on September 29, 2023, and will close on October 5, 2023.
2. Price Band
The price band for the issue has been fixed at Rs 51-54 per share.
3. Offer Details
Plaza Wires plans to raise Rs 71.28 crore from the IPO. The public offer consists of only a fresh issue of 1.3 crore shares and there is no offer-for-sale component. Ahead of the IPO, the company raised Rs 20 crore from two anchor investors. Chanakya Opportunities Fund-I and Astrone Capital UCC-Arven bought 18.52 lakh equity shares each in the company at Rs 54 per share.
4. Objectives of Issue
Plaza Wires will use the net proceeds from the fresh issue to fund the capital expenditure towards setting up a manufacturing unit for house wires, fire-resistant wires and cables, aluminium cables, and solar cables to expand the product portfolio. Plaza Wires will use the remaining funds for the working capital requirements of the company and general corporate purposes.
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5. Lot Size
Investors can bid for a minimum of 277 equity shares and multiples of 277 after that. Hence the minimum investment by retail investors would be Rs 13,127 (277 (lot size) x 51 (lower price band)). At the upper end, the bidding amount will increase to Rs 14,958.
6. Company Profile
Plaza Wires manufactures and sells wires, LT aluminium cables, and FMEG products under brands like Plaza Cables, Action Wires, and PCG. It has a unit in Himachal Pradesh’s Baddi, with a capacity of 1,200,000 coils per year.
7. Financials
Plaza Wires' net profit rose 26 percent to Rs 7.51 crore for the year ended March 2023 from Rs 5.95 crore a year ago. Net revenue from operations grew 3.2 percent to Rs 182.4 crore from 176.7 crore in this period.
8. Key Risks
Plaza Wires generates a significant portion of sales from its operations in certain geographical regions and any adverse developments in these regions could affect its revenue, according to Stoxbox. The other concern is the industry segment in which the business operates is highly fragmented and faces competition from large players that may affect its business operations and financial conditions.
9. Promoters
Sanjay Gupta and Sonia Gupta are the promoters of the company, while Abhishek Gupta, Aditya Gupta, Plaza Power Solutions Private Limited, Plaza Cable Electric Private Limited and Plaza Wires and Electricals Private Limited are part of the promoter group.
10. Listing Date
Plaza Wires shares are expected to be listed on the BSE and the NSE on October 13.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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