Plaza Wires IPO

Plaza Wires is an ISO 9001:2015 and 14001:2015 certified firm that manufactures and sells wires, as well as sells and markets LT aluminium cables and fast-moving electrical items under their main brand “PLAZA CABLES” and home brands like “Action Wires” and “PCG.”. Plaza Wires IPO will hit the stock market in September 2022.

About Plaza Wires

Their company was founded with the goal of carving out a niche in the local wire and cable sector by offering customers of varied backgrounds quantitative and qualitative products at cheap costs. They launched a line of house wire under the trademark “Action Wires” in 2021 for products in the low-cost segment.

They are one of the fastest-growing producers in the wires and cables business in India’s northern area, according to the Resurgent India Research Report, and offer a wide selection of wires and cables.

Wires and cables of various types, as well as FMEG including electric fans, water heaters, switches and switchgears, PVC insulated electrical tape, and PVC conduit pipe and accessories, make up their product mix.

Growth

The wires and cables business in India has expanded at a compound annual growth rate (“CAGR”) of around 13.68 percent in value terms over the last five years, as per Resurgent India Limited, to approach 788.00 billion in Fiscal 2021.

The wires and cables sector in India is expected to grow at a CAGR of around 14.50 percent in value terms to meet the target 1550.00 billion by Fiscal 2026, according to Resurgent India Limited.

Building wires, also called as house wires, single and multicore round flexible industrial cables, and industrial cables for submersible pumps and motors up to 1.1kv grade are among their main products in the wires and cables area. They began collaborating with third-party manufacturers in 2016.

Production

Plaza Wires limited enter into informal agreements with third-party manufacturers for other wires and cable products such as LT power control cable, TV dish antenna co-axial cables, telephone & switch board industrial cable, computer & LAN networking cable, close circuit television cables and solar cables, PVC insulated tape, and PVC conduit pipe & accessories.

They choose and assess these third-party producers based on a number of factors, including product quality, reputation, and delivery requirements for production.

Their goods meet a variety of quality requirements, including those set forth by the Bureau of Indian Standards (“BIS”) and QCL Certification. They have agreements with 20+ service centres in Uttar Pradesh, Uttarakhand, Jammu & Kashmir, Punjab, Haryana, and Tamil Nadu to provide after-sales servicing for electric fans.

Plaza Wires IPO

Plaza Wires Limited, headquartered in New Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 1,64,52,000 Equity Shares on 30 April 2022.

The offer doesn’t includes a fresh issue and there is offer for sale (OFS) of 1,64,52,000 Equity Shares by the promoters mentioned in the DRHP. They are not looking for a Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	31-Dec-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	108.22	99.29	88.51	89.39
Total Revenue	118.65	139.50	159.34	158.21
Profit After Tax	5.74	4.37	4.00	7.02

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	1.43	1.43	3
Financial Year 2020	1.31	1.31	2
Financial Year 2019	2.30	2.30	1
Weighted Average	1.54	1.54
31 Dec. 2021	1.88	1.88

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:

• The distribution network.
• The management and dedicated personnel base.
• The product portfolio focuses on diverse consumer segments and markets.

Plaza Wires Peer Comparison

There are no listed industry peers for their company in India. As a result, providing an industry comparison in relation to their company is impossible.

Plaza Wires IPO Details

IPO Opening Date	September 2022
IPO Closing Date	September 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	1,64,52,000 Equity Shares
Fresh Issue	0
Offer for Sale	1,64,52,000 Equity shares

Plaza Wires IPO Date

Plaza Wires Limited IPO opening date is September 2022, and the closing date is September 2022. The Plaza Wires issue may list in September 2022.

IPO Opening Date	September 2022
IPO Closing Date	September 2022
Basis of Allotment Date	September 2022
Initiation of Refunds	September 2022
Credit of Shares to Demat Account	September 2022
IPO Listing Date	September 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Plaza Wires India Limited IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Plaza Wires IPO.

Plaza Wires IPO GMP

Plaza Wires Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Plaza Wires Limited IPO Review

Plaza Wires Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Plaza Wires IPO is good or bad.

Plaza Wires Limited IPO Risk

• Inadequate or interrupted raw material and packaging material supply, as well as pricing fluctuations, could harm the business, results of operations, cash flows, profitability, and financial position.
• The business requires a large amount of working capital, and a large portion of that capital is spent on trade receivables and stocks.
• It’s possible that their product development efforts will not yield the expected results.
• The business and prospects may suffer if they are unable to continue to implement the brand building and marketing strategies for each of their brands.
• Due to the fragmentation of the market segments in which they operate, they face competition from major players, which may have an impact on their company operations, cash flows, profitability, & financial conditions.

Other Threats

1. Their inability to keep their distribution network stable and recruit new distributors and dealers could have a significant negative impact on their results of operations and financial situation.
2. They make the majority of their money from operations in certain geographic areas.
3. The current and ongoing impact of the COVID-19 pandemic on their business and operations, particularly the impact on customers’ ability or desire to acquire their products, may have a negative impact.
4. Their Wires & Cables goods provide the majority of their income.
5. Certain legal processes include the company, its promoters, directors, and one of the group companies. Any negative outcome in these actions could have a significant negative impact on their business, company operations, cash flows, profitability, and financial conditions.

Distribution & Supply

Depending on the area & industry norms and trends, they offer their products through a range of distribution channels. 1) Their dealer & distribution network, which includes sales through C&F agents, to sell and promote their products.

They choose their dealers and distributors depending on their sales network, market reputation, and financial strength, as well as their ability to 2) secure government tenders for supply to government projects, and 3) sell directly to infrastructure projects.

Their supply chain strategy, which has been in place for more than a decade, consists primarily of their network of authorised dealers, distributors, retailers, and C&F agents, who in turn deliver their products to retail locations across India. They have 1108 approved dealers and distributors throughout India.

Production

Their current manufacturing facility is at Baddi, Himachal Pradesh. They have a production capability of 12,00,000 coils per year as per the DRHP date. They have made periodic investments in their production infrastructure to accommodate its product portfolio needs and reach over the years. They want to build the Proposed Manufacturing Unit with a potential of 8,37,000 coils per year and 8700 kilometres per year.

In addition to their current products including PVC insulated housing wires and cables, their proposed Manufacturing Unit aims to broaden their manufacturing capabilities and enhance their installed potentials to produce new products including fire proof/survival wires, LT aluminium cable, and solar cable.

Plaza Wires Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Plaza Wires IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Plaza Wires Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
September 2022	1
September 2022	2
September 2022	3

Plaza Wires Limited Management

Their Promoters, which include their Managing Director, Mr. Sanjay Gupta, and Whole-Time Director, Mrs. Sonia Gupta, have a total combined experience of roughly 3 decades in the wires and cable industry.

Mr. Aditya Gupta, the Whole Time Director, and each of their Promoters are involved in the important parts of the firm, including expansion, process and plant, finance, sales, and marketing.

Their top management team also has wire and cable sector experience. Each member of their senior management team has worked for the company for more than 5 years.

Their long-term success is the result of consistent efforts in critical areas of their business, such as product portfolio, process improvements, and relationships with dealers and distributors.

Plaza Wires Limited‘ Promoters

• Sanjay Gupta
• Sonia Gupta

Promoter’s Holding

Pre Issue Share Holding	93.68%
Post Issue Share Holding

Plaza Wires Limited Prospectus