Plaza Wires Makes Stellar Debut on Stock Exchanges, Shares Soar 55%

12 Oct 2023 , 09:57 AM

Plaza Wires, a wire manufacturer based in Delhi, made a remarkable debut on the stock exchanges, with its shares listing at a substantial premium of 55%. The company’s shares were initially offered at Rs 54 each, but they debuted at Rs 76 per share, marking a premium of 40.74% on NSE. On BSE, the shares further surged to Rs 84, representing a premium of 55.56%.

The strong reception of Plaza Wires’ initial public offering (IPO) was evident as investors displayed a remarkable level of enthusiasm. The subscription period, which ran from September 29 to October 5, saw an overwhelming response with a subscription rate of 161 times. Investors across all categories demonstrated aggressive bidding, with retail investors oversubscribing their allotted quota by an impressive 374.81 times. Qualified institutional investors (QIIs) subscribed 42.84 times, while high net worth individuals (HNIs) subscribed 388.09 times their allotted shares.

The funds raised from the IPO will primarily be directed towards expanding Plaza Wires’ product portfolio. Specifically, the company intends to establish a new unit dedicated to the production of house wires, fire-resistant wires & cables, aluminum cables, and solar cables. This strategic move is expected to enhance their offerings and cater to growing market demands, with an estimated cost of Rs 24.41 crore. Additionally, the company plans to address its working capital requirements, allocating Rs 22 crore from the IPO proceeds, and any remaining funds will be utilized for general corporate purposes.