Plaza Wires continued its upward journey on October 30, rising 10 percent to Rs 150.54. The stock, which listed on October 12, has nearly tripled, delivering a return of 179 percent over the issue price of Rs 54.
The company, which makes house wires, single and multicore round flexible industrial cables, industrial cables for submersible pumps and motors, received favourable reviews from analysts who tracked its initial public offering.
Analysts at Asit C Mehta said the Indian cable and wire industry’s outlook was bright, given increased government spending in schemes like Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya scheme) and Power for All, focusing on electrification of rural households and T&D efficiencies. An increase in demand for cables from commercial establishments and public utilities, too, augured well for the segment.
Also read: Strong start: Plaza Wires lists at 56% premium to IPO price
Plaza Wires can be a big beneficiary of the rising demand following its decision to expand its manufacturing units and dealer network. The company also has a diversified product mix of products.
Ginni burns bright
Among other big gainers of the day, especially from smallcap space, were Ginni Filaments and Sical Logistics, both were locked in a 10 percent upper circuit. While Ginni Filaments was trading at Rs 28.52, Sical Logistics quoted at Rs 195.30.
Both stocks have risen vertically in the last few weeks with limited volumes. There are hardly any fundamental reasons for their ascent.
Pristine Malwa Logistics Park Private Limited, the promoter of Sical Logistics, said it acquired a 100 percent stake in Distribution Logistics Infrastructure Private Limited, Freightstar Private
Limited, Deshpal Logistics & Infrastructure Private Limited and Bhim Singh Yadav Logistics & Infrastructure Private Limited from Distribution and Logistics Infrastructure India, Mauritius, Infrastructure India Plc.
The deal value was not revealed but it added the transaction involved a combination of cash and equity.
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