Delhi-based cable wire manufacturer, Plaza Wires, witnessed its grey market premium (GMP) double from Rs 23-25 after a robust response to its initial public offering (IPO) on Tuesday. The company's IPO was oversubscribed 160.97 times amidst fluctuating raw material prices and a fiercely competitive market, raising over Rs 71 crore ($9.6 million) through the sale of 13,200,158 shares.
The shares were sold in the price band of Rs 51-54 with a lot size of 277 equity shares. Plaza Wires has an extensive network across India with branch offices in Rajasthan, Uttarakhand, Uttar Pradesh, and warehouses in Assam, Kerala, and Delhi. The company also boasts of over 1,249 authorised dealers, further strengthening its presence.
Pantomath Capital Advisors managed the issue while Kfin Technologies India served as the registrar. The allotment is set to be finalized on Tuesday following a T+6 listing format. The shares are expected to list on BSE and NSE on October 12, 2023.
With its wide range of products including cable wire, Fast-Moving Electrical Goods (FMEG), and LT aluminium cables, Plaza Wires has carved a niche for itself in the Indian market. The company's strong performance in the IPO, despite volatile raw material prices and stiff competition, highlights investor confidence in its business model and growth prospects.
Plaza Wires is a prominent player in the Electrical Equipment industry, as noted by InvestingPro. This gives the company a competitive edge and allows it to leverage its industry experience to maintain its market position and drive growth.
It's worth noting that the company's revenue growth has been slowing down recently. This could be due to a variety of factors, such as increased competition or changes in the market. However, InvestingPro Tips suggest that despite this slowdown, the company has been profitable over the last twelve months and analysts predict it will continue to be profitable this year.
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