The initial public offer (IPO) of Delhi-based Plaza Wires has received a great response from investors despite volatility in the equity markets, as investors have subscribed to the issue 160.97 times with bids coming in for 152.86 crore equity shares against the issue size of 94.96 lakh equity shares on October 5, the final day of bidding.
Retail investors remained at forefront since the day one (September 29) as they bid 374.81 times the reserved portion, which is the highest ever by any IPO in the retail category.
High net worth individuals (HNIs) also looked bullish on the wire manufacturer buying 388.09 times the allotted quota, while the portion set aside for qualified institutional buyers (QIBs) was subscribed 42.84 times.
Up to 75 percent of the issue size has been reserved for QIBs, 15 percent for HNIs and the remaining 10 percent for retail investors.
The issue was subscribed 62.55 times in previous three sessions, till October 4.
The wire manufacturer intends to mobilise Rs 71.28 crore via public issue at the upper price band, comprising only a fresh issue portion.
The company has already raised Rs 20 crore from two anchor investors - Chanakya Opportunities Fund I and Astrone Capital UCC-Arven at the upper price band.
Also read: Plaza Wires IPO: 10 things to know before you buy into the issue
The price band for the offer is at Rs 51-54 per share.
Plaza Wires will make use of net fresh issue proceeds for setting up a new unit for house wires, fire-resistant wires & cables, aluminium cables and solar cables to expand the product portfolio at a cost of Rs 24.41 crore. Further, Rs 22 crore will be used for the working capital requirements and the remaining for general corporate purposes.
Also read: Polymatech Electronics files papers to raise Rs 750 crore via IPO
Its IPO shares remained in demand in the grey market, attracting around 40 percent premium over the upper price band, analysts on anonymity said. The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing.
Also read: Newjaisa Technologies shares list at 51% premium over IPO price on NSE SME
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