The public issue of Delhi-based Plaza Wires has received great demand from investors on the first day of bidding, September 29 as the offer fully subscribed within initial hours of launch, backed majorly by retail investors and high networth individuals.
The Rs 71.3-crore initial public offering has been subscribed 4.69 times so far, with bids coming in for 4.45 crore equity shares against the offer size of 94.96 lakh shares, as per the subscription data available on exchanges.
Retail investors have bought 26.6 times the allotted quota and the portion set aside for high networth individuals was subscribed 4.76 times, while qualified institutional buyers have bid for 0.4 percent shares of reserved portion.
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The wires manufacturer has reserved 75 percent of the public issue size for qualified institutional buyers, 15 percent for high networth individuals and the remaining 10 percent for retail investors.
Plaza Wires' IPO, which closes on October 5, comprises only a fresh issue component, which means the entire issue proceeds (excluding offer expenses) utilisation will take place only for the company purpose. There is no offer-for-sale portion in the IPO.
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Of the total issue size, Rs 20 crore has already been mopped up by the company via two anchor investors namely Chanakya Opportunities Fund I and Astrone Capital UCC-Arven which bought 18.52 lakh shares each at the upper price band.
The price band for the offer has been fixed at Rs 51-54 per share.
Also read: Plaza Wires floats Rs 71-cr IPO: 10 things to know before you buy into the issue
The company that also sells LT aluminium cables and fastmoving electrical goods (FMEG) under its flagship brand PLAZA CABLES and home brands such as Action Wires and PCG will be using Rs 24.41 crore of fresh issue proceeds for setting up a new manufacturing 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 the working capital requirements, and the remaining for general corporate purposes.
Also read: CJ Darcl Logistics to raise funds via IPO, files draft papers with SEBI
Plaza Wires' IPO shares seem to be getting good demand in the grey market as analysts on anonymity said shares were available at more than 25 percent premium over the upper price band. The grey market is an unofficial platform for trading in IPO shares till the listing.
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