Plaza Wires share price locked in 5% upper circuit, gains 56% in two sessions

Plaza Wire shares were listed at a premium on the bourses on Thursday. In comparison to the issue price of ₹54, Plaza Wires shares were listed for ₹76 on the NSE, 40.7% higher, and at ₹84 on the BSE, 55.6% higher.

Also Read: Plaza Wires share price debuts at 41% premium at ₹76 on NSE

Within minutes after Plaza Wires’ shares listing on Thursday, the Plaza Wires stock price extended gains and it reached an intraday high of ₹80.20 per share.

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Analysts claim that Plaza Wires has a strong order book and a good business plan. Additionally, input costs are soft, particularly for copper, which helps to increase margins. Because of the high demand, every cable and wire company is operating at maximum capacity.

Avinash Gorakshkar, Head of Research at Profitmart Securities, stated that Plaza Wires will face competition from high-caliber peers such as Havells India, Polycab, and so on. 

The order book and the company’s expansion in the upcoming quarters will therefore be crucial factors. In order to benefit from the infrastructure boom, the wires and cable segment must outperform the mentioned companies, who control a significant portion of the market.

Also Read: Plaza Wires share price extends gain after giving strong listing gain to allottees. Buy, sell or hold?

Plaza Wires IPO opened for subscription on Friday, September 29, and closed on Thursday, October 5. The company fixed the price band at ₹51 to ₹54 per equity share for the proposed initial public offer.

Plaza Wires IPO was subscribed 4.73 times on day 1. Plaza Wires IPO subscription status on day 2 was 27.90 times. On day 3, Plaza Wires IPO subscription status was 62.75 times.

Also Read: Plaza Wires IPO: Bidding ends tomorrow. Check GMP, subscription status on day 3, apply or not?

Plaza Wires IPO, was worth ₹71.28 crores, and was completely a fresh issue of 13,200,158 equity share; there was no offer for sale (OFS) component.

The company has planned to use the net proceeds from the offering to pay for the following items, including funding the capital expense for opening a new manufacturing facility to produce house wires, fire-resistant wires and cables, aluminium cables and solar cables to broaden the product line, funding the company’s working capital needs and general corporate purposes.

According to RHP, For the fiscal 2023, 2022 and 2021, the aggregate revenue from operations from these states were ₹1,382.27 million, ₹1,388.28 million and ₹1,180.55 million, respectively.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 13 Oct 2023, 02:53 PM IST