Excellent Wires And Packaging IPO Closes With Over 20 Times Subscription

The initial public offering of Excellent Wires and Packaging Ltd. was subscribed 20.37 times on Friday. The SME issue was subscribed over three times on the second day and 1.27 times on Wednesday.

The SME IPO is a fixed-price issue worth Rs 12.60 crore and comprises an entirely fresh issue of 14 lakh shares. The IPO price was fixed at Rs 90 per share.

Retail investors could apply for a minimum lot size of 1,600 shares, amounting to an investment of Rs 1.44 lakh. The minimum investment for High Net-worth Individuals was Rs 2.88 lakh. The application size for HNIs was of two lots, or 3,200 shares.

The IPO closed on September 13 with the share allotment status for the issue expected to be finalised on September 16. The company will initiate refunds for unsuccessful bidders and transfer of shares into the Demat accounts of allottees on September 17. The company will likely list on September 19 on the NSE SME Emerge platform.

The IPO was subscribed 20.37 times on Friday.

• Non-institutional investors: 8.75 times.

• Retail investors: 32.00 times.

The grey market premium of Excellent Wires And Packaging is Rs 0 as of 6:30 p.m., implying no gains over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 90 per share.

GMP is not an official price quote for the stock and is based on speculation. 

Net proceeds of the IPO will be used for acquisition of land and construction of a building by the company. The company will also use the funds for the acquisition of a plant and machineries and funding working capital requirements. A portion of the IPO proceeds will also be used for general corporate purposes.

Incorporated in March 2021, Excellent Wires and Packaging Ltd. manufactures several types of wires under the brand name 'Excellent'. It also sells packaging products to its customers under the same brand name, after procuring them from the market.

The company's product portfolio includes brass wires and related products, steel wires, and packaging materials. Its products are supplied to different industries including engineering, packaging, imitation jewellery, stationery, and wires and cable, among others.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.