IPO News

Plaza Wires received SEBI nod to raise funds via IPO

Posted On : 2022-10-18 23:04:57( TIMEZONE : IST )

Plaza Wires received SEBI nod to raise funds via IPO

Delhi-based Plaza Wires Limited is engaged in the business of manufacturing and selling of wires, and selling and marketing of LT aluminium cables and fast moving electrical goods ("FMEG") has received capital markets regulator, Securities and Exchange Board of India (SEBI) nod to raise funds through an initial public offering (IPO).

The public offer has a face value of Rs 10 per equity share, is a complete fresh issue of 1,64,52,000 equity shares with no offer for sale component. The Offer is being made through the Book Building Process, wherein not less than 75% of the Offer shall be available for allocation to Qualified Institutional Buyers, not more than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders.

The proceeds from its fresh issuance will be used to the tune of Rs 21.62 crore towards funding the capital expenditure towards setting up of proposed manufacturing unit, Rs 21 crore for funding working capital requirements of the company besides general corporate purposes.

The company's product mix includes various types of wires and cables, as well as FMEG such as electric fans, water heaters, switches and switchgears, PVC insulated electrical tape, and PVC conduit pipe and accessories. In 2021, the company launched a line of house wire under the brand "Action Wires" for products in the low-cost range. According to a Resurgent India report quoted in its DRHP, it is one of the fastest growing manufacturers in the wires and cables industry in northern region in India, and provides extensive range of wires and cables, under its flagship brand "PLAZA CABLES" and home brands such as "Action Wires" and "PCG".

The company's business model engages dealer and distribution network via 1108 authorized representatives to sell and market the company's products, including sales through C&F agents, securing government bids for supply to government projects, and direct sales to infrastructure projects. It competes in a highly competitive Industrial Equipment Wholesale industry which has established names like Finolex Cables Ltd, KEI Industries Ltd, Havells India Ltd, KEC International Ltd, R R Kabel Ltd, V-Guard Industries Ltd, and Polycab India Limited.

Pantomath Capital Advisors Private Limited is the sole book running lead manager to the issue and Kfin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

Source : Equity Bulls


PlazaWires SEBI Approval IPO FundRaising