Plaza Wires IPO Subscription Hits Record High on Day 3; Retail Portion Subscribed 193.99 Times

4 Oct 2023 , 03:33 PM

Plaza Wires’ initial public offering (IPO) has witnessed remarkable subscription numbers, especially from retail investors, on the third day of bidding, October 4. The IPO has garnered significant interest, with a subscription rate of 49.37 times, reflecting strong investor confidence. Here are the key highlights of Plaza Wires’ IPO subscription:

Retail Investor Frenzy:

Retail investors have displayed exceptional enthusiasm for Plaza Wires’ IPO by subscribing 193.99 times the allotted quota. This marks a historic milestone as the highest-ever subscription in the retail category for an IPO. Prior to Plaza Wires, Nureca, Everonn Systems, and Paras Defence and Space Technologies achieved more than 100 times subscription in the retail category, showcasing the immense retail demand.

High Net Worth Individuals (HNIs) Participation:

High Net Worth Individuals (HNIs) have also shown robust support for the IPO, subscribing 100.43 times the reserved portion, which accounts for 15% of the total IPO size. Their overwhelming response reflects their confidence in Plaza Wires’ growth potential.

Qualified Institutional Buyers (QIBs) Participation:

While retail investors and HNIs demonstrated significant interest, the response from Qualified Institutional Buyers (QIBs) remained relatively subdued, with a subscription rate of 2.29 times the portion allocated to them. This segment represents 75% of the total offer size.

Consistent Demand:

From the first day of bidding, Plaza Wires’ IPO has consistently attracted strong demand, with a subscription rate of 27.78 times by the end of the second day, October 3.

Utilization of Funds:

Plaza Wires, a Delhi-based wire manufacturer, aims to raise Rs 71.28 crore through its IPO, with a focus on the upper price band. The company has already secured Rs 20 crore from two anchor investors, Chanakya Opportunities Fund I and Astrone Capital UCC-Arven. The proceeds from the IPO (excluding IPO expenses) will be allocated as follows:

• Rs 24.41 crore for establishing a new unit for various cables, expanding its product portfolio.
• Rs 22 crore for fulfilling working capital requirements.
• The remaining amount for general corporate purposes.

Price Band:

Investors can participate in Plaza Wires’ IPO within the price band of Rs 51-54 per share.