Shares of Plaza Wires made a strong debut at the bourses on Thursday. As against the issue price of ₹54, the stock was listed at ₹84 and closed at ₹80.23 on the BSE, a gain of 48.6 per cent over the IPO price. On the NSE, the stock closed at ₹76 and closed at ₹80.20. The IPO attracted the highest-ever retail investor participation and raised ₹71.3 crore.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said, “This is (listing premium) in line with expectations, given the strong oversubscription of the IPO and the company’s strong fundamentals.”
The entire offer from the New Delhi-based Plaza Wires is a fresh issue of up to 1.32 crore shares. 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 such as electric fans and water heaters.
Plaza Wires will use ₹24.41 crore from the proceeds to set up a new unit for house wires, fire-resistant wires and cables, aluminium cables, and solar cables. Besides, ₹22 crore will be utilised for working capital requirements, and the remaining for general corporate purposes.