Plaza Wires IPO subscribed 27.78 times

Published on Oct 03, 2023 17:28

The initial public offer (IPO) of Plaza Wires received bids for 26,37,76,020 shares as against 94,96,114 shares on offer, according to stock exchange data at 17:03 IST on Tuesday (3 October 2023). The issue was subscribed 27.78 times.

The issue opened for bidding on Friday (29 September 2023) and it will close on Thursday (5 October 2023). The price band of the IPO is fixed at Rs 51-54 per share. An investor can bid for a minimum of 277 equity shares and in multiples thereof.

The offer consists 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 Wednesday, 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.