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Plaza Wires Limited IPO – Price, Lot size, Open date, GMP & Review

Written by - Marisha Bhatt

September 28, 2023 6 minutes

Delhi-based wires manufacturing company Plaza Wires is coming up with an IPO in September. As the Indian stock markets continue to show signs of resilience, many IPOs have entered the bourses recently. Multiple IPOs have also given substantial listing gains to investors.

Plaza Wires Limited IPO will open for subscription from 29th September 2023 to 4th October 2023.

Here are all the important details of Plaza Wires Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.

Read More: Mistakes to avoid while investing in an IPO 

IPO Details 

The key details of Plaza Wires Limited IPO are as under. 

  1. IPO Size 

The size of the IPO and different categories of the issue are:

IPO Opening Date29th September 2023 
IPO Closing Date4th October 2023
ListingNSE, BSE 
Issue TypeBook Built Issue IPO
Face Value of Shares Rs. 10 per share
IPO Price BandRs. 51 – Rs. 54 per share
IPO SizeRs. 71.28 crores 
Offer for Sale 
Fresh IssueRs. 71.28 crores 
  1. IPO Dates 

The important dates for Plaza Wires IPO

Opening date29th September 2023
Closing Date4th October 2023
Allotment Date9th October 2023
Refund Date10th October 2023
Share Credit Date11th October 2023
Listing Date12th October 2023
  1. IPO Lot Sizes 

Investors can subscribe to Plaza Wires Limited IPO shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below: 

Investments in lots Minimum – 1 lotMaximum – 13 lots
Investment amount Minimum – Rs. 14127 – 14,958Maximum – Rs. 1,94,454
Shares  Minimum – 277Maximum – 3601
  1. IPO Reservation

Here’s the summary of reservation for different applicant categories in this IPO:

Category of InvestorReservation Percentage
Retail Individual Investor10%
QIB (Qualified Institutional Buyer)75%
NII (Non-Institutional Bidders)15%

Plaza Wires Limited IPO Objectives

This IPO is a fully Fresh Issue IPO. The objectives of the IPO are mentioned below,

  • The proceeds will be used for funding the capital expenditure requirements for the new manufacturing unit being set up for house wires, fire-resistant wires & cables, aluminium cables, and solar cables to expand the product portfolio.
  • The company will further use the proceeds to meet its working capital needs.
  • The balance proceeds will be used for general corporate needs.

Top things to know about Plaza Wires Limited IPO 

The Indian wires and cables industry achieved significant growth, recording a 13.68% CAGR over the last five years, and its value in FY 2021 reached ₹788.00 billion. Plaza Wires Limited, belonging to this sector, is an ISO-certified company. They manufacture wires, sell LT aluminium cables, and market electrical goods under brands like “PLAZA CABLES,” “Action Wires,” and “PCG.” Their mission is to carve a niche in the domestic wire industry by offering quality products at competitive prices. In 2021, they introduced “Action Wires,” a cost-effective line of house wires. The company is a growing manufacturer in the wires and cables industry, primarily serving the northern region of India. 

The range of products offered by the company includes 

  • Building wires (house wires).
  • Single & multi core round flexible industrial cables.
  • Industrial cables for submersible pumps & motors (up to 1.1kv grade).
  • LT power control cables.
  • TV dish antenna coaxial cables.
  • Telephone & switchboard industrial cables.
  • Computer & LAN networking cables.
  • Closed-circuit television cables.
  • Solar cables.
  • PVC insulated tape.
  • PVC conduit pipe & accessories.
  • FMEG, such as electric fans, water heaters, switches, and switchgears.

While most of these products are produced in-house, few products like power control cables, co-axial cables, networking cables, PVC products, and more, are manufactured through arrangements with third-party producers. They distribute these products through multiple channels, including a dealer network, government tenders, and direct sales to infrastructure projects, selecting partners based on factors like sales capabilities and market reputation.

Is Plaza Wires Limited profitable – Know the financial performance of Plaza Wires Limited 

Plaza Wires Limited’s financials are given in the table below:

Year Assets (Rs. in cr)Revenue (Rs. in cr)Profit After Tax (Rs. in cr)EPS (Diluted)Net worth (Rs. in cr)Total Borrowing (Rs. in cr)

(Source: RHP)

What are the strengths of Plaza Wires Limited?

Some of the key strengths of Plaza Wires Limited IPO that investors can take note of are

Business model Plaza Wires Limited has an extensive network of over 1249 authorized dealers and distributors in India and prioritises them for increasing their customer base by leveraging this extensive network and strong relationships as substantial entry barriers for competitors.Plaza Wires Limited is proactively expanding its manufacturing capacity to meet rising demand for its existing product range while strategically focusing on key growth sectors like mining, shipping, power, construction, and agriculture to enhance its market share.
Other meritsThe company has introduced a mobile application-driven loyalty program specifically designed for “Electricians & Retailers,” showcasing its commitment to technological innovation and customer engagement.

What is the risk of investing in Plaza Wires Limited IPO?

Here are some of the risks that investors of Plaza Wires Limited IPO should know:

Business viability and profitabilityOver reliance on wires and cable sales as the primary revenue source increases vulnerability to market fluctuations and competition.A delay in placing orders for the Proposed Manufacturing Unit could result in cost and time overruns, while the company’s manufacturing concentration in Himachal Pradesh presents risks if operations encounter difficulties in that region.Involvement in government tenders and firms exposes the company to potential liability and contract disputes, with indemnities potentially falling short, while the commercialization and development of new and existing products, particularly FMEG, may face unforeseen delays and risks.
Other concernsEnforcement challenges in contractual rights may arise due to issues such as inadequate stamping or lack of registration.

What is the Grey Market Premium (GMP) of Plaza Wires Limited?

As of September 27th, 2023, the grey market premium for the shares of Plaza Wires Limited IPO is Rs. 12 as per market observers. This means the shares are expected to list at a premium of Rs. 12 over the listing cap price of Rs. 54.

Is Plaza Wires IPO safe for investment?

Plaza Wires Limited has shown a consistent increase in its financial performance and also has a Return on Capital Employed (ROCE) that is in line with most of its listed peers. However, the higher debt-equity ratio as compared to its top-listed peers should also be considered. Investors should therefore evaluate the core fundamentals of the company and its historical performance before making an investment decision. 

How to apply for Plaza Wires Limited IPO?

Investors can invest in this IPO through the Fisdom app.

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