New Delhi-based Plaza Wires Ltd has revealed the pricing band of Rs 51-54 per share for its upcoming initial public offering (IPO) valued at Rs 71.30 crore, set to open for subscription on September 20.
This IPO exclusively comprises a fresh issue of shares. The anchor investor segment, targeting institutional investors and aimed at bolstering investor confidence, is scheduled to kick off on September 27. The IPO subscription window is set to close on October 4.
Plaza Wires is renowned for its production and sale of wires, LT aluminium cables, and FMEG (Fast Moving Electrical Goods) products, marketed under prestigious brands such as Plaza Cables, Action Wires, and PCG. The company operates a manufacturing unit in Baddi, Himachal Pradesh, with an annual production capacity of 1,200,000 coils.
Proceeds from this IPO will be earmarked for the construction of a new factory dedicated to house wires, fire-resistant wires and cables, aluminum cables, and solar cables, thus broadening its product range and catering to operational requirements, as outlined in the offer document.
In FY21, Plaza Wires acquired 7,902 square meters of land in Himachal Pradesh for a new unit, which is expected to contribute an additional capacity of 837,000 coils and 8,700 kilometers annually.
The company boasts a network of 1,108 authorized representatives responsible for product sales and distribution. In the competitive landscape of the industrial equipment wholesale industry, Plaza Wires contends with established players 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 revenues of Rs 126.69 crore, accompanied by a net profit of Rs 5.74 crore. Its net debt as of that date stood at Rs 40.65 crore.
Pantomath Capital Advisors Private Limited has been appointed as the book running manager for the offering, with Kfin Technologies Limited serving as the registrar for the offer.