Plaza Wires IPO: All You Need To Know
The FMEG manufacturer's IPO comprises a fresh issue of 13,200,158 shares, amounting to up to Rs 71.28 crore.
Plaza Wires will launch its initial public offering on Sept. 29. The IPO issue will close on Oct. 4.
The FMEG manufacturer's IPO comprises a fresh issue of 13,200,158 shares, amounting to up to Rs 71.28 crore. The company does not have any offer for sale
Issue Details
Issue Opens: Sept. 29
Issue Closes: Oct. 4
Fresh Issue Size: Rs 71.28 crore
Shares for Fresh Issue: 13,200,158 shares
Total Issue Size: Rs 71.28 crore
Price Band: Rs 51–54 per share
Lot Size: 277 Shares
Face Value: Rs 10 per share
Listing: BSE and NSE
Business
The company is engaged in the business of manufacturing and selling wires, including the sale and marketing of LT aluminium cables and fast-moving electrical goods under the flagship brand “Plaza Cables” and home brands such as “Action Wires” and “PCG”.
The company's key products are building wires, also known as house wires, single and multicore round flexible industrial cables, and industrial cables for submersible pumps and motors up to 1.1 kv grade.
The company's business model includes:
A dealer and distribution network to sell and promote products, including sales through C&F agents. It selects dealers and distributors based on their sales network, market reputation, and financial strength, including sales.
Securing government tenders for supply to government projects and
Direct sales to infrastructure projects
Use Of Proceeds
Funding the capital expenditure for setting up the proposed manufacturing unit
Funding the working capital requirements
General corporate purposes
Risks
The company's success depends on its ability to build the proposed manufacturing unit and expand its product portfolio, both of which are subject to risks and uncertainties. A delay in the schedule of implementation may subject the company to risks related to time and cost overruns.
The company has not yet placed orders in relation to the capital expenditure to be incurred for the proposed manufacturing unit. In the event of any delay in placing the orders, the same may result in time and cost overruns.
The company's parent, Plaza Cable Electric Pvt., is engaged in activities that are similar to its business. This may be a potential source of conflict of interest, which may have an adverse effect on its business.
Inadequate or interrupted supply and price fluctuations of raw materials and packaging materials could adversely affect business.
A company requires significant amounts of working capital. Its inability to meet working capital requirements may have an adverse effect on the results of operations and overall business.
The industry segments in which companies operate are fragmented, and they face competition from large players, which may affect their business operations and financial conditions.
Watch | IPO Adda with Plaza Wires management:
