Plaza Wires mobilizes Rs 20 crore from anchor book ahead of IPO

28 Sep 2023 , 09:03 AM

Delhi-based wire manufacturing firm, Plaza Wires, successfully secured Rs 20 crore in funding from two anchor investors on September 27, just before its IPO launch.

This anchor investment round saw the participation of two investors, Chanakya Opportunities Fund I and Astrone Capital UCC-Arven, each purchasing 18.52 lakh equity shares at a price of Rs 54 per share.

Plaza Wires is set to initiate its initial public offering today, featuring a price range of Rs 51-54 per share.

This Rs 71.28-crore IPO comprises exclusively of a fresh issue by the company, with no offer-for-sale component. Consequently, all proceeds from the IPO, after deducting expenses, will be directed to the company.

The company, known for its LT aluminum cables and fast-moving electrical goods (FMEG) products, plans to allocate Rs 24.41 crore towards establishing a manufacturing facility for various products like house wires, fire-resistant wires & cables, aluminum cables, and solar cables, as part of its strategy to expand its product range.

Additionally, the fresh issue proceeds will be utilized to address working capital requirements amounting to Rs 22 crore, while the remaining funds will be designated for general corporate purposes.