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Plaza Wires plans to raise up to Rs 71.28 crore through an initial public offering (IPO). The subscription for the IPO will be open from September 29 to October 4, 2023. The price band is fixed between Rs 51 and Rs 54 per share.
The IPO consists of only fresh issue of shares worth up to Rs 71.28 crore. The face value is set at Rs 10 per share.
Company Summary
Plaza Wires is engaged in the business of manufacturing and selling of wires, and selling and marketing of LT aluminium cables and fast moving electrical goods (FMEG) under its flagship brand “Plaza Cables” and home brands such as “Action Wires” and “PCG”.
The company’s product mix comprises different type of wires and cables, and FMEG such as electric fans, water heaters, switches and switchgears, PVC insulated electrical tape and PVC conduit pipe & accessories. The company’s key products in the wires and cables segment are building wires also known as house wires, single & multi-core round flexible industrial cables and industrial cables for submersible pumps & motors up to 1.1kv grade.
For other wires and cable products such as LT power control cable, TV dish antenna co-axial cables, telephone & switch board industrial cable, computer & LAN networking cable, close circuit television cables and solar cables, PVC insulated tape and PVC conduit pipe & accessories, the company enters into informal arrangements with third-party manufacturers who produce the products according to the company’s requirements.
As part of after sales service for electric fans, the company has tie ups with more than 20 service centres in Uttar Pradesh, Uttarakhand, Jammu and Kashmir, Punjab, Haryana and Tamil Nadu. In 2021, Plaza Wires expanded its product portfolio by launching miniature circuit breakers and distribution board (DB) in the north and south India region.
The company has an existing manufacturing unit in Baddi, Himachal Pradesh, and the installed production capacity of 12,00,000 coils per annum. The company plans to set up a new manufacturing unit with an additional installed capacity of 8,37,000 coils per annum and 8,700 km per annum
Plaza Wires’ distribution network in India comprised over 1249 authorized dealers and distributors, three branch offices in Rajasthan, Uttarakhand and Uttar Pradesh, one branch office-cum-warehouse at Maharashtra, four warehouses in Uttar Pradesh, Assam, Kerala and Delhi and C&F (Clearing & Forwarding) agent in Punjab as of end of March 31, 2023.
Company Strengths
- Portfolio of variety of products focused on different customer segments and markets.
- Expansive dealer and distribution network.
- Value creation through operational growth, building brand recognition and loyalty.
- Identifying new business opportunities by launching new products and diversifying customer base.
- Experienced management and dedicated employee base.
Company Financials
Period Ended | FY23 | FY22 | FY21 |
Total Assets (Rs in crore) | 112.1 | 104.17 | 99.28 |
Total Revenue (Rs in crore) | 182.6 | 176.94 | 145.6 |
Revenue from Operations (Rs in crore) | 182.49 | 176.77 | 145.38 |
EBITDA (Rs in crore) | 15.7 | 13.19 | 10.86 |
EBITDA Margin | 8.60% | 7.46% | 7.47% |
Profit After Tax (Rs in crore) | 7.51 | 5.95 | 4.24 |
PAT Margin | 4.11% | 3.37% | 2.91% |
ROE | 14.15% | 13.08% | 10.75% |
ROCE | 15.57% | 13.90% | 11.62% |
Debt to Equity Ratio | 0.75 | 0.88 | 1.1 |
Purpose of the IPO
The net proceeds from fresh issue of shares will be utilised for the following purposes:
- Funding of capital expenditure totalling Rs 24.41 crore towards setting up of proposed manufacturing unit for house wires, fire-resistant wires & cables, aluminum cables and solar cables to expand their product portfolio.
- Funding working capital requirements of the company aggregating up to Rs 22 crore.
- General corporate purposes.
Company Promoters
Sanjay Gupta and Sonia Gupta are the promoters of the company.
IPO Details
IPO subscription Date | September 29 to October 4, 2023 |
Face Value | Rs 10 per share |
Price Band | Rs 51 to Rs 54 per share |
Lot Size | 277 Shares |
Total Issue Size | 1,32,00,158 shares aggregating up to Rs 71.28 crore |
Fresh Issue | 1,32,00,158 shares aggregating up to Rs 71.28 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 277 | Rs 14,958 |
Retail (Maximum) | 13 | 3601 | Rs 194,454 |
Small HNI (Minimum) | 14 | 3,878 | Rs 2,09,412 |
Small HNI (Maximum) | 66 | 18,282 | Rs 9,87,228 |
Large HNI (Minimum) | 67 | 18,559 | Rs 10,02,186 |
Allotment Details
Event | Date |
Allotment of Shares | October 9, 2023 |
Initiation of Refunds | October 10, 2023 |
Credit of Shares to Demat Account | October 11, 2023 |
Listing Date | October 12, 2023 |
To check allotment, click here