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The Rs 71.28 Crore Initial Public Offering of Plaza Wires Limited witnessed a strong response from Retail and Non-Institutional Investors with 160.98 times subscription on the final day of bidding.

The issue received bids of 1,52,86,61,064 shares against the offered 94,96,114 equity shares, at a price band of ?51-54, according to the data available on the stock exchanges.

Non-Institutional Investors Portion was the most subscribed with 388.10 times, followed by Retail Portion with 374.81 times, whereas Qualified Institutional Buyer Portion was subscribed 42.84 times.

Pantomath Capital Advisors Private Limited is the sole book running lead manager to the issue. The Equity Shares are proposed to be listed on BSE Limited and National Stock Exchange (NSE).

Company Information

The company's product mix includes various types of wires and cables, and FMEG such as electric fans, water heaters, switches and switchgears, PVC insulated electrical tape, and PVC conduit pipe and accessories. In 2021, the company launched a line of house wire under the brand "Action Wires" for products in the low-cost range. According to a Resurgent India report quoted in its DRHP, it is one of the fastest growing manufacturers in the wires and cables industry in northern region in India, and provides extensive range of wires and cables, under its flagship brand “PLAZA CABLES” and home brands such as “Action Wires” and “PCG”.

The company’s business model engages dealer and distribution network via 1249 authorized representatives to sell and market the company's products, including sales through C&F agents, securing government bids for supply to government projects, and direct sales to infrastructure projects. It competes with listed peers which includes Cords Cable Industries Limited, Ultracab (India) Limited, V-marc India Limited, Dynamic Cables Limited, and Paramount Communications Limited.

It's manufacturing facility in Baddi has an installed production capacity of 12,00,000 coils per annum. It has proposed to set up a manufacturing facility to add 8,37,000 coils per annum to manufacture new products such as fire proof/survival wires, LT aluminium cable and solar cables.

The company’s revenue from operations grew 3.23% from ? 176.77 crore in Fiscal 2021 to ? 182.49 crore in Fiscal 2023 primarily due to an increase in sales of wires and cables. However, profit after tax grew 26.14% to ? 7.51 crore for fiscal 2023 against ? 5.95 crore for fiscal 2022.

The table below shows subscription data for all the categories of investors:

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