Plaza Wires IPO ends with blockbuster subscription

Published on Oct 06, 2023 15:03

The initial public offer (IPO) of Plaza Wires received bids for 1,52,86,35,857 shares as against 94,96,114 shares on offer. The issue was subscribed 160.97 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 388.09 times. The Retail Individual Investors (RIIs) category was subscribed 374.81 times. The Non Institutional Investors (NIIs) category was subscribed 42.84 times.

The issue opened for bidding on 29 September 2023 and it closed on 5 October 2023. The price band of the IPO was fixed at Rs 51-54 per share.

The offer consisted of only a fresh issue of 1,32,00,158 equity shares. Of the net proceeds from fresh issue, about Rs 24.413 crore will be used for funding the capital expenditure towards setting up of a new manufacturing unit for house wires, fire resistant wires & cables, aluminium cables, and solar cables to expand product portfolio; Rs 22 crore towards funding working capital requirements and balance is for general corporate purposes.

The company`s total borrowing as end of March 2023 stood at Rs 39.675 crore.

Ahead of the IPO, Plaza Wires on 27 September 2023 raised Rs 20 crore from anchor investors. The board allotted 37.04 lakh shares at Rs 54 each to 2 anchor investors.

Plaza Wires is engaged in the business of manufacturing and selling of wires, and selling and marketing of LT aluminum cables and fast-moving electrical goods (FMEG).

The company reported a consolidated net profit of Rs 7.51 crore and net sales of Rs 182.49 crore for the twelve months ended on 31 March 2023.