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Plaza Wires Limited IPO
Plaza Wires Limited, headquartered in New Delhi has submitted a Draft Red Herring Prospectus(DRHP) to the Securities and Exchange Board of India(SEBI) for an initial public offering (IPO) of 1,64,52,000 Equity Shares on 30 April 2022.
The offer doesn't include a fresh issue and there is an offer for sale (OFS) of 1,64,52,000 Equity Shares by the promoters mentioned in the DRHP. They are not looking for a PreIPO placement in this issue. According to the DRHP, before submitting the Red Herring Prospectus (RHP) to the Registrar of Companies, the company may potentially think about a pre-IPO placement (RoC). The offered size of the IPO will be decreased to the extent of the pre-placement if the pre-IPO placement is successful.
Opening Date
To be announced
Closing Date
To be announced
Price Band
To be announced
Issue Size
To be announced
Face Value
To be announced
Market Lot
To be announced
Opening Date
To be announced
Closing Date
To be announced
Price Band
To be announced
Issue Size
To be announced
Face Value
To be announced
Market Lot
To be announced
Listing at NSE, BSE
Plaza Wires Limited IPO Important Dates
| IPO Open Date | To be announced |
|---|---|
| IPO Close Date | To be announced |
| Allotment Date | To be announced |
| Initiation Of Refunds | To be announced |
| Credit Of Shares To Demat Account |
To be announced |
| IPO Listing Date | To be announced |
| UPI Mandate Expiry Date | To be announced |
About Plaza Wires Limited
Their business was started with the intention of filling a void in the local wire and cable market by providing clients from different backgrounds with affordable, high-quality, and measurable products. In 2021, they introduced a range of home wires for low-cost products under the trade name "Action Wires." According to the Resurgent India Research Report, they produce a variety of wires and cables and are among the companies with the quickest growth in the northern region of India.
Their product mix includes a variety of wires and cables in addition to FMEG including electric fans, water heaters, switches, switchgear, PVC insulated electrical tape, and PVC conduit pipe and accessories.
Plaza Wires Limited IPO Objectives
- Funding the capital expenditure towards setting up a new manufacturing unit for house wires, fire-resistant wires & cables, aluminium cables and solar cables to expand the product portfolio.
- Funding the working capital requirements of the Company.
- General corporate purposes.
Why should you invest in the Plaza Wires Limited IPO?
- Global wires and Cables market is expected to reach worth $236.1 billion in 2024 growing at a CAGR of 8.00%.
- The C&W industry is expected to grow to ₹1,033bn in FY23, boosted by increased infra spends by the government.
- The wires and cables industry in India to expand at a CAGR of approximately 14.50% in value terms to reach approximately ₹1,550 billion by Fiscal 2026.
Financial Highlights
| Key Performance Indicators | March 31, 2019 | March 31, 2020 | March 31, 2021 | As of and for the nine months ended December 31, 2021* |
|---|---|---|---|---|
| Revenue from Operations | 157.740 | 159.142 | 145.378 | 126.693 |
| Gross Profit(1) | 39.657 | 38.094 | 32.703 | 29.827 |
| Gross Margin(2) | 25.14% | 23.94% | 22.49% | 23.54% |
| EBITDA(3) | 13.583 | 10.835 | 11.078 | 11.828 |
| EBITDA Margin(4) | 8.61% | 6.81% | 7.62% | 9.34% |
| Profit After Tax for the Year / Period | 7.022 | 4.004 | 4.372 | 5.744 |
| PAT Margin(5) | 4.45% | 2.52% | 3.01% | 4.53% |
| ROE(6) | 22.50% | 11.37% | 11.04% | 71.08% |
| ROCE(7) | 30.89% | 23.15% | 19.23% | 19.68% |
| Debt / Equity(8) | 0.022 | 0.015 | 0.028 | 0.021 |
How to apply for Plaza Wires Limited IPO?
Retail investors need to apply for the IPO using UPI.
UPI
- Link your bank account to a UPI ID.
- Register your UPI id with your Demat account.
- Subscribe for Plaza Wires Limited IPO and approve the payment on your UPI ID.
Demat Account
- If you’re a new investor, Open a DEMAT Account for free with Angel One and begin your investment journey.
Plaza Wires Limited Noteworthy Highlights:
- Company’s distribution network in India comprised over 1108 authorized dealers and distributors, 4 branch offices in Uttarakhand, Rajasthan, Kerala and Uttar Pradesh, 3 warehouses in Uttar Pradesh, Assam andDelhi and C&F agents in Punjab, Kerala and Maharashtra for the nine months period ended December 31, 2021.
- In value terms, Resurgent India Limited expects the Indian wires and cables market to grow at a CAGR of approximately 15% to reach an estimated ₹1,033 billion by Fiscal 2023, due largely to government initiatives in power and infrastructure such as increased infrastructure expenditure by the Government.
The Brand’s Pros & Cons:
| Pros | Cons |
|---|---|
| The company strives to offer quality products at low prices to make them accessible to all its customers and work as a means to accelerate the business. | Inadequate or interrupted raw material and packaging material supply, as well as pricing fluctuations, could harm the business, results of operations, cash flows, profitability, and financial position. |
| Plaza Cables has a wide product portfolio, including wires, cables, various fan types, and certain electronics. The company also introduced a low-cost segment of products under the brand “Action Wires” in 2021. | The business requires a large amount of working capital, and a large portion of that capital is spent on trade receivables and stocks. |
| The company has come a long way, but its value and dedication to its customers have remained the same through the years. | Due to the fragmentation of the market segments in which they operate, they face competition from major players, which may have an impact on their company operations, cash flows, profitability, & financial conditions. |
| The new manufacturing unit will enhance the scale of operations, and the company will be able to expand its product portfolio. | The business and prospects may suffer if they are unable to continue to implement the brand building and marketing strategies for each of their brands. |
Competitive Analysis: Market Peers
| Name of the Company | CMP* | EPS (Basic) | EPS (Diluted) | PAT Margin % | RONW (%) | P/E Ratio | NAV (per share) | Face Value (per share) | Total Income (In Crores) |
|---|---|---|---|---|---|---|---|---|---|
| Plaza Wires Limited Peer Group | [●] | 1.43 | 1.43 | 3.0% | 11.0% | [●] | 12.96 | 10 | 145.595 |
| Cords Cable Industries Ltd- | 61.70 | 3.42 | 3.42 | 1.34% | 2.99% | 18.04 | 112.72 | 10.00 | 324.746 |
| Ultracab (India) Ltd | 27.50 | 1.60 | 1.60 | 2.87% | 8.88% | 17.19 | 18.11 | 10.00 | 71.311 |
| V-Marc India Limited | 39.40 | 3.45 | 3.45 | 3.30% | 13.81% | 11.42 | 24.98 | 10.00 | 175.499 |
| Dynamic Cables Limited | 130.90 | 4.47 | 4.47 | 2.81% | 8.40% | 29.28 | 53.23 | 10.00 | 350.677 |
| Paramount Communications Limited | 12.41 | 0.17 | 0.17 | 0.59% | 1.61% | 73.00 | 9.94 | 2.00 | 5,217.68 |
Plaza Wires Limited IPO FAQs
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How to check the allotment status of Plaza Wires Limited IPO on the Angelone App?
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