Plaza Wires sets price band of Rs 51-54 a share for Rs 71.3-crore IPO

The funds from the new issuance will go towards building a new factory and covering our ongoing operational needs.

Delhi-based Plaza Wires Ltd has set a price band of Rs 51-54 a share for its Rs 71.30 crore initial public offering (IPO), which opens for subscription on September 29.

The offer is purely a fresh issue. The anchor investor segment will open on September 27 and the IPO will close on October 4. Anchor investors are institutional investors invited to subscribe shares before an IPO opens to shore up investor confidence.

The company 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.

The funds raised will go towards building a new factory for house wires, fire-resistant wires and cables, aluminium cables and solar cables to expand the product portfolio as well as meet the company’s operational needs, the offer document said.

In FY21, the company acquired 7,902 sq m of land in Himachal for a new unit, which will add 837,000 coils and 8,700 km of capacity a year.

The company has 1,108 authorised representatives for product sales and distribution. It operates in the industrial equipment wholesale industry, competing with well-established companies such as Finolex Cables Ltd, KEI Industries Ltd, Havells India Ltd, KEC International Ltd, R R Kabel Ltd, V-Guard Industries Ltd, and Polycab India Limited.

As of December 2021, the firm reported revenue of Rs 126.69 crore against a net profit of Rs 5.74 crore. Net debt as of date stood at Rs 40.65 crore.

Pantomath Capital Advisors Private Limited serves as the book running manager for the offering and Kfin Technologies Limited is the registrar for the offer.