Delhi-based Plaza Wires Limited, a manufacturer and seller of wires and marketer of LT aluminium cables and fast-moving electrical goods (FMEG), is set to open its initial public offering (IPO) on Friday. The company has fixed the price band for its maiden IPO at Rs 51 to Rs 54 per equity share, according to an official statement released on Wednesday.
The IPO, which will close on Wednesday next week, consists entirely of a fresh issue of up to 1,32,00,158 equity shares with no offer for sale component. Investors can bid for a minimum of 277 Equity Shares and in multiples thereof.
Ahead of the issue opening, Plaza Wires raised Rs 20 crore from two anchor investors, Chanakya Opportunities Fund I and Astrone Capital UCC-Arven. Both investors acquired 18.52 lakh equity shares each at Rs 54 per share.
The proceeds from the Rs 71.28-crore offer will be used by the company to fund its expansion plans and meet working capital requirements. A sum of Rs 24.41 crore will be allocated towards setting up a manufacturing unit for house wires, fire-resistant wires & cables, aluminium cables and solar cables to expand the product portfolio. An additional Rs 22 crore will be used for working capital requirements, while the remaining funds will be reserved for general corporate purposes.
The company's product mix includes various types of wires and cables, as well as FMEGs such as electric fans, water heaters, switches and switchgears, PVC insulated electrical tape, and PVC conduit pipe and accessories. In 2021, Plaza Wires launched a line of house wire under the brand “Action Wires” targeting the low-cost range market segment.
Plaza Wires operates through a dealer and distribution network that includes 1249 authorized representatives. The company's manufacturing facility in Baddi has an installed production capacity of 12,00,000 coils per annum. Plans are underway to set up a new manufacturing facility that will add 8,37,000 coils per annum for the manufacture of new products such as fire proof/survival wires, LT aluminium cable and solar cables.
Pantomath Capital Advisors Private Limited is serving as the sole book running lead managers while KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE. The allotment of IPO shares is set to be finalized by October 9 and credited to the demat accounts of eligible investors by October 11. Trading in its equity shares will commence from October 12.
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