Plaza Wires Limited IPO is live. Should you Invest?
In this article
📃About Plaza Wires Limited
Incorporated in 2006, Plaza Wires Limited is engaged in the business of manufacturing and selling wires and selling and marketing LT aluminium cables and fastmoving electrical goods (FMEG) under its flagship brand “PLAZA CABLES” and home brands such as “Action Wires” and “PCG“.
Plaza Wires was initially incorporated as Navratna Wires. Its essential products in the wires and cables segment include house wires, single & multicore round flexible industrial cables and industrial cables for submersible pumps & motors up to 1.1kv grade. The company also provides other wires and cable products such as LT power control cables, TV dish antenna co-axial cables, telephone & switchboard industrial cables, computer & LAN networking cables, close circuit television cables and solar cables, PVC insulated tape, and PVC conduit pipe & accessories, through third-party manufacturers.
As part of its after-sales service for electric fans, the company has partnered with over 20 service centres in Uttar Pradesh, Uttarakhand, Jammu and Kashmir, Punjab, Haryana, and Tamil Nadu. In 2021, Plaza Wires expanded its product portfolio by launching miniature circuit breakers and distribution boards (DB) in the northern and southern Indian regions. As of March 31, 2023, the company has over 1249 authorized dealers and distributors, 3 branch offices in Rajasthan, Uttarakhand, and Uttar Pradesh, 1 branch office cum godown at Maharashtra, 4 warehouses in Uttar Pradesh, Assam, Kerala and Delhi, and C&F agent in 1 state, viz. Punjab.
💰Issue Details of Plaza Wires Limited
- IPO open from 29th Sep 2023 – 04th Oct 2023
- Face value: ₹10 per equity share
- Price band: ₹51 to ₹54 per share
- Market lot: 277 shares
- Minimum Investment: ₹14,958
- Listing on: BSE and NSE
- Offer for sale: Approx ₹71.28 Cr (Fresh Issue: ₹71.28 Cr)
- Registrar: Kfin Technologies Limited
🪙Total Issue Price
🪚Offer Breakup
🔭IPO Object
The company intends to utilise the net proceeds from the issue towards the funding of the following objects:
- Funding the capital expenditure towards setting up a new manufacturing unit for house wires, fire-resistant wires and cables, aluminium cables, and solar cables to expand the product portfolio.
- Funding the working capital requirements of the company.
- General corporate purposes.
⛓️IPO Strength
Some of the qualitative factors and strengths that form the basis for computing the Offer Price are:
- Wide product portfolio
- Experienced management team
- Growing company with a strong track record
- Strong distribution network
🧨IPO Risk
- Inadequate or interrupted supply and price fluctuation of their raw materials and packaging materials could adversely affect their business, results of operations, cash flows, profitability and financial condition.
- The industry segments in which they operate are fragmented; they face competition from prominent players, which may affect their business operations and financial conditions.
- They have not established long-term or definitive agreements with their dealers or customers. If their dealers or customers choose not to source their requirements from them, their business, financial condition and results of operations may be adversely affected.
- They generate significant sales from their operations in certain geographical regions. Any adverse developments affecting their operations in these regions could hurt their revenue and results of operations.
💸Financial Data
| Period Ended | Total Assets | Total Revenue | Profit After Tax |
| 31-Mar-21 | ₹99.28 | ₹145.60 | ₹4.24 |
| 31-Mar-22 | ₹104.17 | ₹176.94 | ₹5.95 |
| 31-Mar-23 | ₹112.10 | ₹182.60 | ₹7.51 |
PEER COMPANIES
- Cords Cable Industries Ltd
- Ultracab (India) Ltd
- V-Marc India Limited
- Dynamic Cables Limited
- Paramount Communications Limited
📬Also Read: A Simple Guide: Opening a Demat Account for Minors in Bharat
