Plaza Wires' initial public offering (IPO) has recorded healthy subscription numbers on third day of bidding on October 4 as the issue has subscribed 62.55 times, with bids coming in for 59.39 crore equity shares against offer size of 94.96 lakh equity shares.
Retail investors remained extremely aggressive, buying 223.82 times the allotted quota which is 10 percent of the IPO size. This is the highest ever subscription in the retail category by the IPO.
Before Plaza Wires, Nureca, Everonn Systems, and Paras Defence and Space Technologies had seen more than 100 times subscription in the retail category, at 166.65 times in February 2021, 123.80 times in July 2007, and 112.81 times in September 2021, as per Chittorgarh.com
High networth individuals also provided strong support to the offer, subscribing 132.67 times the reserved portion which is 15 percent of the total IPO size, while the response from qualified institutional buyers remained muted, buying 5.79 times the portion set aside for them which is 75 percent of the offer size.
Also read: Fundraising via IPOs drops 26% to Rs 26,300 crore in H1FY24
The maiden public issue by the company continued to receive healthy demand from the day one, subscribing 27.78 times till the second day of bidding, October 3. The offer will close on October 5.
The Delhi-based wire manufacturer intends to raise Rs 71.28 crore via public issue at the upper price band, comprising only a fresh issue component. Of which, the firm already mopped up Rs 20 crore from two anchor investors, Chanakya Opportunities Fund I and Astrone Capital UCC-Arven.
Of the entire issue proceeds (excluding IPO expenses), Rs 24.41 crore will be spent for setting up a new unit for house wires, fire-resistant wires & cables, aluminum cables, and solar cables to expand the product portfolio. Further Rs 22 crore will be utilised for meeting the working capital requirements and the remaining for general corporate purposes.
The price band for the offer is Rs 51-54 per share.
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Its IPO shares' trading premium in the grey market has been increased from 20-40 percent to 30-40 percent over the upper price band, analysts on anonymity sid. The grey market is an unofficial platform wherein the IPO shares can be bought and sold till the listing.
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