Plaza Wires Limited IPO

Last Updated on September 28, 2023 by BFSLTeam BFSLTeam

Holding a legacy of 35 years, Plaza Wires Limited is one of the prominent Indian players in the Fast Moving Electronic Goods market and the wires and cables sector. The company, previously known as RK Cable, manufactures, markets and sells its electronic products under three brand names: Plaza Wires, Action Wires and PCG.

Witnessing the growing demand for IPO shares among retail investors, Plaza Wires Limited has also applied to SEBI with the plan to launch an IPO. After receiving a green signal, the company is finally preparing to launch its upcoming IPO on September 29, 2023. 

Keep scrolling for a detailed idea of the company and its upcoming Plaza Wires Limited IPO. 

Also Read: IPO investment strategy

IPO Details

Plaza Wires Limited will go public with its IPO issues on September 29, 2023. This company is launching a book-built issue IPO. This means, as an investor you can only place bids at par or above the floor price of the shares. 

The table below consists of all the important details about the upcoming Plaza Wires Limited IPO. 

IPO Open Date	29 September, 2023
IPO Close Date	4 October, 2023
Issue Type	Book built issue
Face Value	Rs. 10 per share
Price Band	Rs. 51 to Rs. 54 per share
Minimum Lot Size	277 equity shares per lot
Fresh Issue	1,32,00,158 shares of worth Rs. 71.28 crore
OFS Size	Non-applicable
Listed on	BSE and NSE

About the Company

Earlier known as RK Cables, Plaza Wires Limited has dominated the industry of wires and cables through its journey of 35 years. Since the beginning of its operation, Plaza Wires Limited stood out among its peers with its premium quality products. This firm is equipped with top-notch manufacturing, testing and safety equipment.

As an ISO-certified company, Plaza Wires Limited is engaged in the business of manufacturing, marketing and selling LT Aluminium wires and Fast Moving Electrical Goods. The company sells these products under its primary brand Plaza Cables and home brands like PCG and Action Wires. 

Plaza Wires Limited introduced its new brand extension Action Wires to sell products at an affordable price range. The key products of Plaza Wires Limited include single and multicore round flexible industrial cables, house wires and cables for submersible pumps in the wires and cables segment. Products under the FMEG vertical include water heaters, switches, electric fans, PVC insulated electric tapes, conduit pipes, switchgear, accessories, etc. 

According to a report by Resurgent India Research, Plaza Wires Limited is one of the leading manufacturers and sellers in the wires and cable industry in North India. The company has ties with more than 20 service centres in Uttarakhand, Uttar Pradesh, Punjab, Haryana and Jammu and Kashmir. 

Plaza Wires Limited has 1,108 authorised dealers, distributors and C&F agents on a pan-India basis. In terms of manufacturing capabilities, the company owns a single unit in Baddi, Himachal Pradesh with an annual capacity of 12,00,000 coils. The manufacturing unit is certified under ISO 14001:2015 for environment management and ISO 9001:2015 for quality management.

IPO Tentative Timeline

Here are the tentative dates announced by Plaza Wires Limited for its upcoming public issue. 

Anchor Allocation Date	September 27, 2023, Wednesday
IPO Open Date	September 29, 2023, Friday
IPO Close Date	October 4, 2023, Wednesday
Cut-off Time for UPI Mandate confirmation	October 4,  2023, 5 p.m.
Basis of Allotment	October 9, 2023, Monday
Initiation of Refunds	October 10, 2023, Tuesday
Credit of Shares to Demat account	October 11, 2023, Wednesday
Listing Date	October 12, 2023, Thursday

Also Read: How Can You Analyse An IPO?

IPO Lot Size

Plaza Wires Limited has set a minimum lot size of 277 equity shares for retail investors to place their bids. Let’s take a look at the lot size that the company attributes to retail and HNI investors and the amount they must pay in the table below:

Application Type	No. of Lots	No. of Shares	Amount
Retail (min)	1	277	Rs. 14,958
Retail (max)	13	3601	Rs. 1,94,454
S-HNI (min)	14	3878	Rs. 2,09,412
S-HNI (max)	66	18282	Rs. 9,87,228
B-HNI (min)	67	18559	Rs. 10,02,186

Company Financials

Let’s take a look at the financial metrics of Plaza Wires Limited to help make an informed decision regarding its upcoming IPO.

Particulars	For the Financial Year Ending (in Rs. Million)
	March 31, 2021	March 31, 2020	March 31, 2019
Total Assets	992.85	885.13	893.92
Total Liabilities	596.77	533.03	581.83
Total Expenses	1,395.00	1,538.72	1,498.37
Total Revenue	1,455.95	1,593.40	1,582.08
Profit After Tax	43.72	40.04	70.22
EBITDA	110.78	108.35	135.83

Strengths

Here are a few noteworthy strengths of Plaza Wires Limited that make this IPO worth waiting for:

• The company’s product portfolio takes a wide range of customer needs and market segments into consideration.
• Plaza Wire Limited is managed and run by a professional and experienced team of employees.
• The firm owns a well-connected distribution network with its channels spread across India. The company has 4 branch offices in Rajasthan, Uttar Pradesh, Kerala and Uttarakhand. 
• The company plans to enhance their brand position in the wires and cable industry.

Risks Involved

Besides the above strengths, you must also know the following risks associated with the business of Plaza Wires Limited. 

• A significant amount of the company’s working capital is used towards trade receivables and inventories. Failure to meet its working capital requirement can pose a hurdle in receiving these inventories and receivables. This can negatively impact its business. 
• The success of Plaza Wires Limited relies on its ability to build its planned manufacturing unit and expand its business. However, this plan is subject to several risks and uncertainties. Delay or failure to achieve this goal can cause a major hindrance to the company’s financial growth. 

Also Read: Risk of investing in IPO

Summary 

We have presented some of the essential information for Plaza Wires Limited IPO. You should read through the company’s DRHP to make a well-informed investment strategy that aligns with your investment goals. However, before planning to invest, consider assessing your risk appetite. This will give you a clear idea of how much you can invest here while not deteriorating your financial situation. 

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