- Public issue opens for subscription on September 29 and closes on October 4
- The anchor investor segment will open on September 27
- Funds will be used towards capital expenditure for setting up a new manufacturing unit for house wires, fire-resistant wires & cables, aluminum cables, solar cables to expand the product portfolio, funding working capital requirements and general corporate purposes
- For FY23, company reported revenues of Rs. 182.60 crore and net profit of Rs. 7.51 crore
NE BUSINESS BUREAU
NEW DELHI, SEPT 25
Delhi-based Plaza Wires Ltd has set a price band of Rs 51-54 a share for its Rs 71.30 crore initial public offering (IPO), which opens for subscription on September 29.
The offer is purely a fresh issue of 1.32 crore equity shares. The anchor investor segment will open on September 27 and the IPO will close on October 4. Anchor investors are institutional investors invited to subscribe shares before an IPO opens to shore up investor confidence.
The company manufactures and sells wires, LT aluminium cables, and FMEG products under brands like Plaza Cables, Action Wires, and PCG. It has a unit in Himachal Pradesh’s Baddi, with a capacity of 1,200,000 coils per year.
The funds raised will go towards building a new factory for house wires, fire-resistant wires and cables, aluminium cables and solar cables to expand the product portfolio as well as meet the company’s operational needs, a company release said.
Company has manufacturing facility at Baddi with an installed production capacity of 12,00,000 coils of standard size per annum.
In FY21, the company acquired 7,902 sq m of land in Himachal for a new unit, which will add 837,000 coils and 8,700 km of capacity a year.
Commenting on the IPO, Sanjay Gupta, Managing Director, Plaza Wires Ltd said, “We have proposed to utilize Rs. 24.4 crore from the IPO proceeds towards setting up a manufacturing facility to add 8,37,000 coils per annum and manufacture new products such as fire-proof/survival wires, LT aluminium cables and solar cables. Company plans to utilize Rs. 22 crore from the public issue for working capital requirement and remaining for general corporate purposes.”
The company has 1,108 authorised representatives for product sales and distribution. It operates in the industrial equipment wholesale industry, competing with well-established companies such as Finolex Cables Ltd, KEI Industries Ltd, Havells India Ltd, KEC International Ltd, R R Kabel Ltd, V-Guard Industries Ltd, and Polycab India Limited.
As of December 2021, the firm reported revenue of Rs 126.69 crore against a net profit of Rs 5.74 crore. Net debt as of date stood at Rs 40.65 crore.
The company’s shares shall be listed in the BSE & NSE.
Pantomath Capital Advisors Private Limited serves as the book running manager for the offering and Kfin Technologies Limited is the registrar for the offer.
