Stellar debut: Plaza Wires stock closes with 48.5% listing gains

• The stock listed at ₹110 as compared to the issue price of ₹54 per share.
• Its market cap is at ₹481 crore, according to Bombay Stock Exchange.
• The company’s IPO was subscribed 161 times the shares on offer.

Plaza Wires listed on the bourses with a 103.7% premium on Thursday. The stock listed at ₹110 as compared to the issue price of ₹54 per share.

However, the stock fell during the trading session, bringing down its net listing gains to 48.57%. This is close to what the grey market had predicted — 46% listing gains.

The company’s market cap is at ₹481 crore according to Bombay Stock Exchange.

The fast moving electric goods (FMEG) company’s initial public offer saw a stellar subscription. The issue was subscribed 161 times the shares on offer. Both retail and institutional investors bid aggressively for the issue.

While most of the IPOs that have debuted this year have given good listing gains, there have been a few aberrations like Updater Services and Yatra Online where stocks have fallen on listing.

Here are the listing gains of the last few market debuts



About Plaza Wires

The Delhi based company raised ₹71.28 crore from the public issue. It had fixed a price band of ₹51-54 per share for the issue.

The company plans to use the net proceeds from the issue to fund capex for opening a new manufacturing facility to broaden its product line, apart from working capital needs and general corporate purposes.

The company sells LT aluminium cables and fast-moving electrical goods under Plaza brand. It has many brands under it like Action Wires and PCG.

Its manufacturing facility in Baddi has an installed production capacity of 12,00,000 coils per annum. It has proposed to set up a manufacturing facility to add 8,37,000 coils per annum to manufacture new products such as fire proof/survival wires, LT aluminium cable and solar cables.

The company’s business model engages dealer and distribution network via 1249 authorised representatives to sell and market the company's products, including sales through C&F agents, securing government bids for supply to government projects, and direct sales to infrastructure projects. It competes with listed peers which includes Cords Cable Industries, Ultracab (India), V-marc India, Dynamic Cables, and Paramount Communications.

The company reported 26% year-on-year growth in profit at ₹7.51 crore for FY23. Its net revenue from operations grew 3.2% to ₹182.4 crore in the same period.