DCG Cables & Wires
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 Apr 2024 – 10 Apr 2024
- Listing date
- 16 Apr 2024
- Face value
- ₹10 per share
- Issue price
- ₹100 per share
- Lot size
- 1,200 shares
- Total issue size
- ₹49.99 Cr
- Market cap at offer price
- ₹182 Cr
- Promoter holding
- 100.00% → 72.45% pre-issue → post-issue
- ISIN
- INE0S8401018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- 12, Agrasen Industrial Estate, Chotalal Ni Chali, Odhav Road, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 2,52,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹100
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,20,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,40,000 |
| S-HNI (max) | 8 | 9,600 | ₹9,60,000 |
| B-HNI (min) | 9 | 10,800 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1.31 | 5.09 |
| P/E (×) | 76.34 | 19.65 |
| Price to book (×) | 5.57 | — |
| Market cap | — | ₹182 Cr |
Key performance indicators
- Return on net worth
- 35.79%
- ROCE
- 59.10%
- Debt / equity
- 1.09
- PAT margin
- 11.09%
- NAV per share
- ₹17.94
- Price to book
- 5.57
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About DCG Cables & Wires
DCG Cables & Wires Limited, incorporated in September 2017 and recently converted to a public limited company, is a manufacturer of copper cables and wires based in Ahmedabad, Gujarat. The company produces a wide range of copper products including bare copper strips, conductors, wires, paper-covered copper conductors in rectangular and round shapes, multi-paper-covered copper conductors, connection cables for transformers, fiber glass-covered copper strips and wires, copper submersible wires and strips, and twin and triple bunched paper-covered copper strips. The company operates three manufacturing facilities located at Odhav, Kubadthal, and Waghodia in Gujarat and serves customers primarily within the state through order-based manufacturing.
Company Analysis
from RHPDCG Cables & Wires Limited manufactures copper cables, wires, and related copper products for applications in transformers and electrical equipment.
DCG Cables & Wires Limited, incorporated in September 2017 and recently converted to a public limited company, is a manufacturer of copper cables and wires based in Ahmedabad, Gujarat. The company produces a wide range of copper products including bare copper strips, conductors, wires, paper-covered copper conductors in rectangular and round shapes, multi-paper-covered copper conductors, connection cables for transformers, fiber glass-covered copper strips and wires, copper submersible wires and strips, and twin and triple bunched paper-covered copper strips. The company operates three manufacturing facilities located at Odhav, Kubadthal, and Waghodia in Gujarat and serves customers primarily within the state through order-based manufacturing.
Objects of the Issue
- Capital Expenditure for building construction ₹536.31 lakhs p.18
- Long-term Working capital requirement ₹3320.00 lakhs p.18
- General corporate purposes ₹798.91 lakhs p.18
- Capital Expenditure for building construction ₹536.31 lakhs p.63
- Working capital requirement ₹3,320.00 lakhs p.63
- General corporate purposes ₹872.89 lakhs p.63
Issue Structure
- Total Issue
- ₹4999.20 lakhs
- Fresh Issue
- 49,99,200 equity shares of face value ₹10 each at ₹100 per share aggregating to ₹4999.20 lakhs
- Price Band
- Fixed price of ₹100 per equity share
- Lot Size
- 1200 equity shares
- Face Value
- ₹10 per equity share
Business Model
The company manufactures copper cables and wires primarily for transformers and related electrical applications. Revenue is generated through the sale of copper products to wholesalers and customers spread across Gujarat. The company purchases raw materials (copper, packing materials, compounds, polyester paper, yarn, etc.) domestically on an order basis and converts them into finished products through its manufacturing facilities.
Business Segments
SWOT Analysis
- • Established manufacturer of copper cables and wires for transformer applications(p.17)
- • Diversified product portfolio across multiple copper product categories(p.17)
- • Strong revenue growth trajectory(p.37)
- • Significant profit growth with improving profitability(p.37)
- • Exceptional product quality with excellent conductivity, durability and reliability(p.81)
- • Customization expertise enabling tailor-made solutions for specific client requirements(p.81)
- • Competitive pricing through strong supplier relationships and supply chain management(p.81)
- • Long-standing reputation for reliability and on-time delivery(p.81)
- • Promoters' extensive industry experience of over two decades(p.79)
- • Experienced and committed founding management with deep industry expertise(p.109)
- • Founder promoter with two decades of copper industry experience(p.109)
- • Strong revenue and profit growth trajectory(p.123)
- • Solid return on net worth and equity metrics(p.141)
- • Strong revenue growth trajectory with 96.90% YoY increase FY23(p.181)
- • Expanding manufacturing capacity with multiple production plants(p.180)
- • Improved operational efficiency with declining material cost ratio(p.181)
- • Strong profitability improvement with PAT margin doubling(p.182)
- • Improved working capital access supporting business growth(p.182)
- • Increasing debt service capacity with strong DSCR(p.177)
- • No dependency on single/few customers(p.184)
- • Non-ownership of registered office and factory premises; all on rental/lease basis(p.23)
- • Excessive dependence on limited supplier base (98.81% of purchases from top 10 suppliers in stub period)(p.24)
- • High customer concentration with 75.79% of sales from top 10 customers in stub period(p.24)
- • Outstanding GST litigation with potential penalty of ₹58.58 lakhs(p.24)
- • Irregular compliance with statutory filing requirements (PF, ESIC, GST, TDS, RoC forms)(p.23)
- • Lack of factory license for Waghodia facility(p.23)
- • High working capital requirements with significant current borrowings(p.28)
- • Subsidiary company has filed RoC forms and returns irregularly(p.23)
- • Limited product diversification constraining market demand fulfillment(p.82)
- • Dependency on specific suppliers for raw materials creating supply chain vulnerabilities(p.82)
- • Heavy reliance on specific market segments making company susceptible to economic fluctuations(p.82)
- • High concentration of top 10 customers representing 75.79% of sales(p.80)
- • High leverage and debt burden relative to equity(p.145)
- • Significant dependence on unsecured borrowings from multiple NBFCs at high interest rates(p.131)
- • Concentrated customer and supplier relationships creating business risk(p.137)
- • Recently appointed and relatively inexperienced key finance and compliance personnel(p.114)
- • High leverage with debt-to-equity ratio of 1.09 pre-IPO(p.177)
- • Significant dependence on borrowed funds for expansion(p.181)
- • Deteriorating current ratio indicating working capital pressure(p.177)
- • High inventory and receivables concentration requiring management(p.177)
- • High promoter loans outstanding without interest(p.186)
- • Pending GST litigation with substantial penalty exposure(p.190)
- • Expansion of manufacturing capacity through consolidation of three facilities(p.28)
- • Development of online sales channels for pan-India market reach(p.27)
- • Growing Indian manufacturing sector and economic growth(p.17)
- • Expansion into emerging markets with increasing infrastructure needs(p.83)
- • Leveraging digital transformation to enhance customer engagement and operations(p.83)
- • Government infrastructure investments in smart cities and renewable energy creating substantial demand(p.83)
- • Consolidation and shift of manufacturing to new facility for efficiency and cost optimization(p.82)
- • Expansion of manufacturing capacity and operations infrastructure(p.136)
- • Market growth in copper cables and wires sector through IPO capital raise(p.145)
- • Capacity expansion strategy across multiple geographic locations(p.180)
- • Increased working capital limits enabling business scaling(p.181)
- • Industry growth tailwinds in copper cables & wires manufacturing(p.181)
- • Volume-driven revenue growth model(p.184)
- • Public listing enabling access to capital markets for future growth(p.198)
- • Volatility in copper prices driven by international commodity markets(p.27)
- • Inability to pass on raw material cost increases to customers(p.28)
- • Intense competition from existing and new players with pricing pressures(p.31)
- • Labor-intensive operations subject to seasonal labor shortages and wage inflation(p.31)
- • Dependence on electricity supply and vulnerability to price increases(p.31)
- • Geographical concentration of operations entirely in Gujarat with exposure to state-specific risks(p.27)
- • Risk of disruption from natural disasters and pandemics(p.29)
- • Changes in regulatory framework and government policies(p.37)
- • Economic downturns and disruptions impacting demand for construction and infrastructure projects(p.83)
- • Global supply chain disruptions affecting production and material delivery(p.83)
- • Highly competitive industry with established players and new entrants(p.83)
- • Volatility in copper raw material prices affecting margins(p.81)
- • Volatility in raw material (copper) costs and pricing(p.139)
- • Working capital intensity and receivables management risk(p.144)
- • High interest rate exposure on working capital and term loans(p.140)
- • Exposure to volatile copper commodity price fluctuations(p.180)
- • Significant competition and new market entrants(p.179)
- • Regulatory compliance and technology adaptation risks(p.179)
- • Dependence on retaining experienced workforce(p.179)
- • Regulatory changes impacting operations and costs(p.179)
- • Exposure to raw material availability and pricing pressures(p.179)
- • GST regulatory enforcement action pending resolution(p.189)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Devang Patel | Promoter | 94.25% | 68.29% |
| Harshadbhai Patel | Promoter | 0.02% | 0.02% |
| Ushaben Patel | Promoter | 5.73% | 4.15% |
| Devangbhai H. Patel | Promoter | 94.25% | 68.29% |
| Ushaben H. Patel | Promoter | 5.73% | 4.15% |
| Harshadbhai Bhogilal Patel | Promoter | 0.02% | 0.02% |
| Jayesh Borisa | Promoter Group | Negligible | Negligible |
| Varshaben Borisa | Promoter Group | Negligible | Negligible |
| Devang Patel | Promoter | 94.25% | — |
| Harshadbhai Patel | Promoter | 0.02% | — |
| Ushaben Patel | Promoter | 5.73% | — |
| Ushaben Harshadbhai Patel | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.