Plaza Wires shares to list on October 12; here's what you should expect

Plaza Wires is set to make its Dalal Street debut on Thursday and the company is set to make a decent debut at Dalal Street as signaled by the grey market trends. The company has been able to hold its premium in the unofficial market ahead of its listing, thanks to improved market sentiments amid geopolitical worries.

Last heard, Plaza Wires was commanding a grey market premium of Rs 23-25 per equity share, suggesting a listing pop of 43-45 per cent over its issue price of Rs 54 apiece. The premium in the grey market has remained stable for a while now, but it has almost doubled since the closure of the issue last week.

Analysts tracking the stock are expecting a strong ling pop for the investors and suggest them to book profit on the maiden trading session. They are not very much positive on the stock due to its highly competitive industry and volatile raw material prices.

Considering the strong subscription, Plaza Wires is expected to open at a handsome premium over its listing price, said Anushi Vakharia, Research Analyst at StoxBox. "However, We continue to remain cautious over the long-term trajectory of the business as it operates in an industry that is prone to high raw material volatility along with being part of a highly competitive industry," she said.

"While the P/E of 22 times is based on FY2023 earnings which prices in most of the positives of the company, we advise the investors to book profits today and adopt a wait-and-watch approach to consider it for a long-term investment," Vakharia said.

The IPO of Plaza Wires open for bidding between September 29 to October 5. The company offered its shares in the price band of Rs 51-54 per share with a lot size of 277 shares. It was a small issue, mopped up a little more than Rs 71 crore via its initial offering, which was a sale of 1,32,00,158 fresh equity shares.

The issue of Plaza Wires was overall subscribed 160.97 times during the four-day bidding process led by qualified institutional bidders (QIBs), whose portion was booked 42.84 times.  The allocation for non-institutional investors (NIIs) saw robust 388.09 times bidding. and the quota reserved for retail investors was subscribed 374.81 times.

Plaza Wires manufactures wires and cables, sells and markets LT aluminum cables and fast-moving electrical goods (FMEG). The company, incorporated in 2006, has a network of more than 1,249 authorized dealers and distributors. It has branch offices in Rajasthan, Uttarakhand, and Uttar Pradesh; and warehouses in Uttar Pradesh, Assam, Kerala and Delhi.
 

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