Plaza Wires IPO Day 2: Issue subscribed 28 times by the end of day

3 Oct 2023 , 10:43 PM

Plaza Wires’ Rs 71-crore initial public offering (IPO) is witnessing strong demand, with the offer being subscribed 27.78 times by October 3, the second day of the bidding period. Investors have subscribed to 26.37 crore equity shares against an offer size of 94.96 lakh shares.

Retail investors have shown aggressive bidding, subscribing 118.24 times their allocated quota of shares, marking their highest participation in IPOs in the last two years. High net worth individuals have also participated enthusiastically, bidding 53.06 times the portion set aside for them. However, the response from qualified institutional investors has been relatively muted, with only 42% of their allocated quota subscribed so far.

Plaza Wires, a Delhi-based wires manufacturer, has allocated 75% of the offer size for qualified institutional buyers, 15% for high net worth individuals, and the remaining 10% for retail investors.

The IPO, which closes on October 5, was subscribed 4.69 times on the first day of bidding on September 29. The price band for the offer is set at Rs 51-54 per share.

Proceeds from the IPO will be used for setting up a new unit for house wires, fire-resistant wires & cables, aluminum cables, and solar cables to expand the product portfolio (Rs 24.41 crore), meeting working capital requirements (Rs 22 crore), and general corporate purposes (remaining funds).