Today, DCG Cables and Wires made its debut on the NSE SME platform with a weak performance, opening at ₹90 per share, which is 10% lower than the issue price of ₹100. The IPO subscription, which ran from April 8 to April 10, saw a robust demand, with the issue being oversubscribed by 16.96 times.
Established in 2017, DCG Cables and Wires specializes in the production of copper cables and wires for Indian transformer manufacturers. Their product portfolio includes paper-covered copper conductors, connecting cables, copper strips, bare copper wires, and more.
The company operates three manufacturing facilities in Odhav, Ahmedabad; Kubadthal, Ahmedabad; and Waghodia, Vadodara, with a combined capacity across various product categories.
The IPO, amounting to ₹49.99 crore, comprises a new issuance of 49,99,200 equity shares with a face value of ₹10 each, with no offer-for-sale component. The net proceeds from the IPO will be utilized for financing working capital requirements, capital expenditure for building development, general corporate purposes, and payment of public issue expenses.
Bigshare Services Pvt Ltd is the registrar for the IPO, while Interactive Financial Services Ltd serves as the book running lead manager. Nikunj Stock Brokers acts as the market maker for the IPO.
The grey market premium (GMP), which reflects investors’ willingness to pay more than the issue price, was observed at ₹0, indicating that shares were trading at their issue price of ₹100 with no premium or discount. The GMP fluctuates based on market demand and supply dynamics and serves as an indicator of investor sentiment towards the IPO.
