Shares of Plaza Wires made a stellar debut on Thursday, in line with Street expectations, despite weakness in the broader market. The shares of Delhi-based cable, wire & solar panel manufacturer were listed at ₹84 apiece on the BSE, a premium of 55.5% over the issue price of ₹54 per share. On the NSE, the stock opened 40.7% higher over the initial public offering (IPO) price at ₹76 per share.
Post listing, Plaza Wires shares touched a high of ₹80.2 on the NSE, while it slipped to ₹75 levels on the BSE. At the time of reporting, the stock was trading 48.5% higher at ₹80.23 on the BSE, with a market capitalisation of ₹351 crore.
Ahead of listing, Plaza Wires was commanding a premium of ₹23 in the grey market, indicating listing to be around ₹77 per share, a premium of 42.59% to the IPO price band of ₹51–54 per share. This is in line with expectations, given the strong oversubscription of the IPO and the company's strong fundamentals.
“This is in line with expectations, given the strong oversubscription of the IPO and the company's strong fundamentals. Plaza Wires is a well-managed company with a strong track record of growth. It is a leading manufacturer of wires and cables, with a wide product range and a strong customer base. The company has a strong financial performance, with consistent revenue and profit growth in recent years. Though the IPO size was small, it received an amazing response from investors,” says Shivani Nyati, Head of Wealth, Swastika Investmart.
“Investors may consider booking profit after this listing, while those who are looking for a long-term investment should maintain a stop-loss at ₹68,” Nyati says.
The ₹71.28-crore IPO of Plaza Wires was subscribed 160.97 times, making it one of the most oversubscribed public issues of the year. It was completely a fresh issue of 13,200,158 equity shares, and there was no offer for sale (OFS) component.
The issue, which opened between September 29 and October 5, received an overwhelming response from investors. The portion reserved for retail investors was booked 374.81 times, high net-worth individuals’ quota was subscribed 388.09 times, and qualified institutional investors’ quota received 42.84 times bid. The company had reserved up to 75% of the shares for qualified institutional buyers (QIB), up to 15% for non institutional investors (NII), and up to 10% for retail investors.
The company intends to use capital raised from the IPO mainly for setting up a new unit for house wires, fire-resistant wires and cables, aluminium cables and solar cables to expand its product portfolio.
Established in 2006, Plaza Wires manufactures wires and cables, sells and markets LT aluminum cables and fast-moving electrical goods (FMEG) under its flagship brand "PLAZA CABLES" and home brands such as "Action Wires" and "PCG". It has a network of 1,250 authorised dealers and distributors.
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