Plaza Wires IPO booked 43.22x so far, driven by 175x retail subscription
The NII category was also not too behind with 88.3 times subscription. The QIB part was the least booked at 60%.
The issue closes for subscription tomorrow.
According to market sources, the company's shares are trading at a premium of Rs 23 in the unlisted market. The company is offering its shares at Rs 51-54 apiece.
Analysts advised investors to subscribe to the issue on the company's competitive strengths which include product portfolio focused on various customer segments, distribution network, and experienced management and dedicated employee base.
The IPO comprises fresh equity issue of 1.32 crore, aggregating up to Rs 71.2 crore.
Investors can bid for a minimum of 277 shares in one lot and in multiples thereafter.
About 75% of the offer is set aside for qualified institutional buyers, 15% is reserved for non-institutional investors and 10% for retail investors.
Plaza Wires is engaged in the business of manufacturing and selling of wires, and selling and marketing of LT aluminium cables and fast-moving electrical goods under its flagship brand «Plaza Cables».
In 2021, it launched a line of house wire under the brand «Action Wires» for products at economical price range.
The company's product mix includes different types of wires and cables, and fast moving electrical goods such as electric fans, water heaters, switches and switchgears, Poly Vinyl Chloride insulated electrical tape and Poly Vinyl Chloride conduit pipe and accessories.
Net proceeds from the issue are proposed to be utilised towards funding the capex for setting up of a new manufacturing unit for house wires, fire-resistant wires and aluminum cables to expand its product portfolio. Further, the proceeds will also be used for funding working
