Plaza Wires’ shares listed at 55.55% premium over the IPO price on bourses on Thursday. The share debuted at Rs 84 on the BSE, as compared to the issue price of Rs 54. The investors have made a profit of Rs 30 per share as the scrip gave more than 55% returns to investors on the listing.
“This is in line with expectations, given the strong oversubscription of the IPO and the company’s strong fundamentals. Plaza Wires is a well-managed company with a strong track record of growth. It is a leading manufacturer of wires and cables, with a wide product range and a strong customer base. The company has a strong financial performance, with consistent revenue and profit growth in recent years. Though the IPO size was small, it received an amazing response from investors. Investors may consider booking profit after this listing, while those who are looking for a long-term investment should maintain a stop-loss of Rs 68,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
Plaza Wires IPO opened for public subscription on Friday, September 29, 2023, and closed on Thursday, October 5, 2023. The bidding for anchor investors concluded on Wednesday, wherein the company collected Rs 20 crore. The price band for its public issue at Rs 51-54 per equity share of face value Rs 10 each. The IPO consisted of the fresh issue of 13,200,158 shares aggregating up to Rs 71.28 crore. For potential investors, the bidding starts at a minimum of 277 equity shares, with subsequent bids in multiples of 277 equity shares. Ahead of its listing, Plaza Wires’ shares’ GMP surged 42.59%.
Plaza Wires (PWL) is involved in the business of manufacturing and selling wires along with selling and marketing of LT aluminum cables and fast-moving electrical goods (FMEG). The company’s product mix includes products of different types of wires and cables, and FMEG such as electric fans, water heaters, switches, and switch gears, PVC insulated electrical tape, and PVC conduit pipe & accessories. The company has a network of 1,249 authorized dealers and distributors spread across pan India and C&F agents in Punjab.