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The initial public offering of Plaza Wires saw the highest ever participation by retail investors in the country so far.
While the issue was subscribed to 160.97 times on Thursday overall, the portion reserved for retail investors saw a whopping response of 374.81 times, beating the previous record set by Latentview Analytics and Paras Defence and Space Technologies. In the case of the former, the retail portion was subscribed by over 119 times, and the latter attracted nearly 113 times. Both companies went public in 2021.
According to analysts, the performance of the cable and wire companies in the secondary market may have attracted retail investors. RR Kabel saw its share price rise almost 50 per cent to ₹1,524.85 against the IPO price of ₹1,035 within 10 days of listing on September 20. Polycab India, which hit the market in 2019 at an issue price of ₹358, is currently ruling at ₹5,238.65, generating a whopping return of 1,892 per cent.
The ₹71.28-crore IPO of Plaza Wires also witnessed a strong response from non-institutional investors, whose portion was subscribed 388.09 times while the portion set aside for qualified institutional buyers received bids for 42.84 times.
Overall, the issue received bids for 152.86 crore shares as against 94.93 lakh shares on offer, as per data available with the exchanges.
Utility of funds
The entire offer from the New Delhi-based Plaza Wires is a fresh issue of up to 1.32 crore shares. The IPO price band was ₹51-54. Ahead of the issue, Plaza Wires had raised ₹20 crore from anchor investors Chanakya Opportunities Fund I and Astrone Capital UCC-Arven.
The company is in the business of manufacturing, marketing, and selling wires, aluminium cables, and fast-moving electrical goods like electric fans and water heaters.
From proceeds, Plaza Wires will use ₹24.41 crore for setting up a new unit for house wires, fire-resistant wires and cables, aluminium cables, and solar cables to expand the product portfolio. Besides, ₹22 crore will be utilised for working capital requirements and the remaining for general corporate purposes.
Pantomath Capital Advisors is the manager of the offer.
The equity shares of the company are proposed to be listed on the BSE and the NSE.
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