Plaza Wires made a remarkable stock market debut, achieving a significant 103.7% premium on its listing day, marking one of the most impressive listing gains in recent history.
The stock opened at ₹110 per share, well above its issue price of ₹54 per share. This surpassed even the optimistic expectations of the grey market, which had predicted a more modest 46% listing gain.
As a result, Plaza Wires’ market capitalization now stands at ₹481 crore on the Bombay Stock Exchange.
The company, primarily dealing in fast-moving electrical goods (FMEG), saw overwhelming demand during its initial public offering, with the issue being oversubscribed a staggering 161 times. Both retail and institutional investors displayed strong interest in the offering.
In a year when many IPOs have delivered positive listing gains, there have been a few exceptions, such as Updater Services and Yatra Online, where stock prices declined upon listing.
Here’s a summary of the recent listing gains of a few companies:
- Updater Services: -5.3%
- JSW Infra: 28.5%
- Yatra: -4%
- Signature Global: 18%
- Sai Silks Kalamandir: 10%
- EMS Ltd: 32.58%
- R R Kabel: 15.6%
- Jupiter Life Line Hospitals: 46%
- Rishabh Instruments: 0.18%
- Ratnaveer Precision Engineering: 37%
- Vishnu Prakash R Punglia: 47%
- Aeroflex: 83%
- Pyramid Technoplast: 12%
- TVS Supply Chain: 5%
- SBFC: 43%
- Concord Biotech: 21%
About Plaza Wires:
This Delhi-based company successfully raised ₹71.28 crore from its public issue, offering shares at a price band of ₹51-54 per share.
Plaza Wires intends to utilize the net proceeds from the IPO for expanding its manufacturing capacity by establishing a new manufacturing facility, diversifying its product line, covering working capital requirements, and general corporate purposes.
The company specializes in the production of LT aluminum cables and fast-moving electrical goods under the Plaza brand. It manages various sub-brands, including Action Wires and PCG.
With an existing annual production capacity of 12,00,000 coils, located in Baddi, the company plans to add another facility capable of producing 8,37,000 coils per annum. This expansion will allow the manufacturing of new products such as fireproof/survival wires, LT aluminum cables, and solar cables.
Plaza Wires employs a business model that involves a network of dealers and distributors through 1,249 authorized representatives for marketing and selling its products. Their sales operations extend to government projects and direct sales to infrastructure projects. The company competes with other listed peers, including Cords Cable Industries, Ultracab (India), V-marc India, Dynamic Cables, and Paramount Communications.
In terms of financial performance, the company reported a 26% year-on-year growth in profits, reaching ₹7.51 crore for FY23. Its net revenue from operations also saw a 3.2% growth, totaling ₹182.4 crore during the same period.