The Initial Public Offering of Plaza Wires Limited will open on Friday, September 29, 2023, for subscription and close on Wednesday, October 4, 2023. Investors can bid for a minimum of 277 Equity Shares and in multiples of 277 Equity Shares thereafter. The Public Issue of face value of ₹10 per Equity Share is entirely a fresh issue of equity shares up to 1,32,00,158 with no offer for sale component. The Delhi-based Company has announced a price band of Rs. 51 – Rs. 54 per share and mulls mobilizing Rs. 71.28 crore at the upper cap. Post allotment, shares will be listed on BSE and NSE. The issue constitutes 30.17% of the post-IPO paid-up capital of the company. From the net proceeds of the IPO, the company will utilize Rs. 24.41 crore for capex towards the proposed manufacturing unit for house wires, fire-resistant wires, and cables, aluminum cables, and solar cables to increase its product portfolio, Rs. 22.00 crore for working capital, and the rest for general corporate purposes.
- Issue Opens on: Friday, September 29, 2023
- Issue Closes on: Wednesday, October 4, 2023
- Face Value: ₹10 per equity share
- Price Band: ₹51 to ₹54
- Issue Size – ₹71.28 Crore (1,32,00,158 equity shares)
- Market Lot Size – 277 Equity Shares
- Issue Type: Book Built issue
- Listing at: BSE & NSE
- Listing Date: October 12, 2023
About Plaza Wires Limited
Plaza Wires Limited is engaged in the business of manufacturing and selling wires, and selling and marketing LT aluminium cables and fastmoving electrical goods (FMEG) under its flagship brand “PLAZA CABLES” and home brands such as “Action Wires” and “PCG”.
Plaza Wires was originally incorporated as Navratna Wires. Its key products in the wires and cables segment include house wires, single & multicore round flexible industrial cables and industrial cables for submersible pumps & motors up to 1.1kv grade. The company also provides other wires and cable products such as LT power control cables, TV dish antenna co-axial cables, telephone & switchboard industrial cables, computer & LAN networking cables, close circuit television cables and solar cables, PVC insulated tape, and PVC conduit pipe & accessories, through third-party manufacturers.
Key Performance Indicator
- P/E (x): 21.95
- Market Cap: ₹ 236.26 crore
- ROE: 14.15%
- ROCE: 15.57%
- Debt/Equity: 0.75
- EPS: ₹ 2.46
- RoNW: 14.16%
As part of after-sales service for electric fans, the company has tied up with more than 20 service centers 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 boards (DB) in the north and south Indian regions.
As of March 31, 2023, the company has over 1249 authorized dealers and distributors, 3 branch offices in Rajasthan, Uttarakhand, and Uttar Pradesh, 1 branch office cum godown at Maharashtra, 4 warehouses in Uttar Pradesh, Assam, Kerala and Delhi, and C&F agent in 1 state, viz. Punjab.
Plaza Wires Limited is engaged in the business of manufacturing and selling of wires, and selling and marketing of LT aluminium cables and fast-moving electrical goods. The company’s product mix includes various types of wires and cables, as well as 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.
Extensive Range of Wires and Cables
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”. Plaza wires 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’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. Pantomath Capital Advisors Private Limited is the sole book running lead managers and KFin Technologies Limited is the registrar to the offer.
IPO Promoter Holding
| Share Holding Pre Issue | 100% |
| Share Holding Post Issue | 69.83% |
Financial Performance
For the last three fiscals, Plaza Wires Limited has posted respectively total income and net profit of Rs. 145.60 crore/ Rs. 4.24 crore (FY21), Rs. 176.94 crore / Rs. 5.95 crore (FY22), and Rs. 182.60 crore / Rs. 7.51 crore (FY23). For the last three fiscals, the company has posted PAT margins of 2.91% (FY21), 3.37% (FY22), and 4.11% (FY23), and RoCE margins of 11.62%, 13.90%, and 15.57% for corresponding periods respectively.
