Plaza Wires, a prominent producer and seller of cables, wires, and electrical goods, has announced its intent to go public on Monday. The company's initial public offering (IPO) will open for bidding on Friday, September 29, with shares offered in the range of Rs 51-54 per share and a lot size of Rs 277 shares. The bidding period is set to conclude on Wednesday, October 4.
The wire manufacturer aims to raise Rs 71.28 crore from its primary offering, which includes the sale of over 1.32 crore fresh equity shares. Pantomath Capital Advisors will manage the issue and Kfin Technologies will serve as the registrar.
The funds procured from the IPO will be channeled towards capital expenditure for establishing a new manufacturing unit. This facility is expected to produce house wires, fire-resistant wires & cables, aluminum cables, and solar cables, thereby broadening the company's product portfolio. A portion of the proceeds will also be allocated to meet working capital requirements and general corporate purposes.
Founded in 2006, Plaza Wires operates under several brands including 'Plaza Cables', 'Action Wires', and 'PCG'. Their diverse product range includes house wires, single and multi-core round flexible industrial cables, and industrial cables for submersible pumps and motors up to 1.1 kv grade. They also source other wire and cable products from third-party manufacturers.
In terms of distribution, Plaza Cables operates through an extensive network of over 1,249 authorized dealers and distributors. The company maintains branch offices in Rajasthan, Uttarakhand, Uttar Pradesh and Maharashtra; alongside warehouses in Uttar Pradesh, Assam, Kerala, and Delhi.
For the financial year ending March 31, Plaza Wires reported a net profit of Rs 7.51 crore on revenues of Rs 182.60 crore. In comparison, the company reported a bottom line of Rs 5.95 crore and Rs 4.24 crore with revenues standing at Rs 176.94 crore in FY 22 and Rs 145.60 crore in FY21.
The company has allocated 75 per cent of its equity shares for qualified institutional bidders (QIBs), while non-institutional institutional (NIIs) will have 15 per cent shares reserved for them. The remaining 10 per cent shares will be available to retail investors. Upon completion of the IPO, Plaza Wires' shares will be listed on both NSE and BSE.
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