Plaza Wires
Book Building issueMainboard₹71.28 Cr issue
+55.56%
Listing gain over issue price
Issue size
₹71.28 Cr
1 lot at cut-off
₹14,958
Lot size
277shares
Open
29 Sep 2023
Close
05 Oct 2023
Allotment
09 Oct 2023
Listing
12 Oct 2023
Listing performance
Issue price
₹54
Listed at
₹84
Listing-day close
₹80.23
Latest price
₹50.01
Close on 23 Oct 2026
Listing gain
+55.56%
Return since issue
-7.39%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Sep 2023 – 05 Oct 2023
- Listing date
- 12 Oct 2023
- Face value
- ₹10 per share
- Issue price
- ₹54 per share
- Lot size
- 277 shares
- Issue type
- Book Building issue
- Total issue size
- ₹71.28 Cr
- Market cap at offer price
- ₹236 Cr
- Promoter holding
- 100.00% → 69.83% pre-issue → post-issue
- ISIN
- INE0INJ01017
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Pantomath Capital Advisors Pvt.Ltd.
- Registered office
- A-74 Okhla Industrial Area, Phase-2 New Delhi, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 37,04,044 | — | — |
Application size
Minimum 277 shares per lot, in multiples, at ₹54
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 277 | ₹14,958 |
| Retail (max) | 13 | 3,601 | ₹1,94,454 |
| S-HNI (min) | 14 | 3,878 | ₹2,09,412 |
| S-HNI (max) | 66 | 18,282 | ₹9,87,228 |
| B-HNI (min) | 67 | 18,559 | ₹10,02,186 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
37,04,044
Anchor portion
₹20 Cr
at ₹54 per share
Valuation and performance
Valuation at offer price
₹54 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.46 | — |
| P/E (×) | 21.95 | — |
| Market cap | — | ₹236 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 14.16%
- ROCE
- 15.57%
- Debt / equity
- 0.75
- PAT margin
- 4.11%
- NAV per share
- ₹17.37
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Plaza Wires
Plaza Wires Limited, originally incorporated as Navratna Wires Private Limited in 2006 and converted to a public company in 2022, manufactures and sells wires and cables under the flagship brand 'PLAZA CABLES' and home brands 'Action Wires' and 'PCG'. The company also sells and markets LT aluminium cables and fast-moving electrical goods such as electric fans, water heaters, switches and switchgears, PVC insulated electrical tape, and PVC conduit pipe & accessories. The company has an existing manufacturing unit in Baddi, Himachal Pradesh, and plans to establish a new manufacturing unit for house wires, fire-resistant wires & cables, aluminium cables, and solar cables. Revenue from operations in fiscal 2023 was ₹1,824.92 million.
Company Analysis
from RHPPlaza Wires Limited is an ISO-certified manufacturer and marketer of wires, cables, and fast-moving electrical goods operating in India's cables and wires industry.
Plaza Wires Limited, originally incorporated as Navratna Wires Private Limited in 2006 and converted to a public company in 2022, manufactures and sells wires and cables under the flagship brand 'PLAZA CABLES' and home brands 'Action Wires' and 'PCG'. The company also sells and markets LT aluminium cables and fast-moving electrical goods such as electric fans, water heaters, switches and switchgears, PVC insulated electrical tape, and PVC conduit pipe & accessories. The company has an existing manufacturing unit in Baddi, Himachal Pradesh, and plans to establish a new manufacturing unit for house wires, fire-resistant wires & cables, aluminium cables, and solar cables. Revenue from operations in fiscal 2023 was ₹1,824.92 million.
Cables and WiresElectrical Equipment ManufacturingFast-Moving Electrical Goods (FMEG)
Objects of the Issue
- Funding the capital expenditure towards setting up of new manufacturing unit for house wires, fire-resistant wires & cables, aluminum cables and solar cables to expand our product portfolio 244.13 million p.25
- Funding the working capital requirements of our Company 220.00 million p.25
- General corporate purposes p.25
- Funding the capital expenditure towards setting up of a new manufacturing unit for house wires, fire-resistant wires & cables, aluminum cables and solar cables to expand our product portfolio ₹244.13 million p.86
- Funding the working capital requirements of our Company ₹220.00 million p.86
- General corporate purposes p.86
- Setting up of a new proposed manufacturing unit for manufacturing fire proof / survival wires, LT aluminium cables and solar cables p.138
- General corporate purposes
Issue Structure
- Total Issue
- Up to ₹[●] million
- Fresh Issue
- Up to 13,200,158 Equity Shares of face value of ₹10/- each aggregating up to ₹[●] million
- Price Band
- ₹51 per Equity Share (Floor Price) to ₹54 per Equity Share (Cap Price)
- Lot Size
- 277 Equity Shares and in multiples of 277 Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and sells wires and cables, primarily through a wide-spread distribution network of 1,249 registered dealers and distributors as of March 31, 2023. Raw materials (copper and PVC compounds) constitute 73.76% of revenue from operations (fiscal 2023). Products are sold to retail customers through dealers and distributors, with a portion also sourced from third-party manufacturers. The company also generates revenue from fast-moving electrical goods (FMEG products), PVC pipe, and electrical tape.
Business Segments
Manufacturing and selling of wires and cables, including house wires, fire-resistant wires, and other cable products under the flagship brand PLAZA CABLES
Selling and marketing of Low Tension aluminium cables
Manufacturing and selling of electrical goods such as electric fans, water heaters, switches and switchgears
Selling of PVC insulated electrical tape and PVC conduit pipe & accessories
Manufactures diverse range of PVC insulated housing wires and cables as per ISO 694 under the brand 'Plaza Cables'
To expand manufacturing capabilities through manufacturing existing and new products like aluminum cables and solar cables with an installed capacity of 8,700 kilometers of cables per annum, and expand existing installed capacities by setting up a new manufacturing line of 8,37,000 coils p.a.
Manufacturing and selling of copper wires and cables including building wires (house wires), flexible industrial cables, and industrial cables for submersible pumps & motors up to 1.1kv grade, compliant with BIS standards
Selling and marketing of LT aluminium cables through arrangements with third-party manufacturers
Marketing and selling of electric fans (ceiling fans, TPW fans, exhaust fans) and water heaters with capacities up to 50 litre through third-party manufacturers
Selling and marketing of miniature circuit breakers and distribution boards for domestic and commercial applications
Selling and marketing of PVC conduit pipes and accessories for concealed, underground, and surface wiring
Selling and marketing of PVC insulated electrical tapes and other electrical accessories
Manufacturing and trading of electrical wire and allied products
Manufacturing and selling of building wires (house wires), single & multicore round flexible industrial cables, industrial cables for submersible pumps & motors up to 1.1kv grade, LT power control cables, TV dish antenna co-axial cables, telephone & switch board industrial cables, computer & LAN networking cables, close circuit television cables, and solar cables
Selling and marketing of FMEG products including electric fans, water heaters, switches and switchgears, PVC insulated electrical tape, PVC conduit pipe & accessories, miniature circuit breakers (MCB), and distribution boards (DB)
SWOT Analysis
Strengths
- • ISO certified manufacturing operations(p.25)
- • Established distribution network(p.40)
- • Revenue growth trajectory(p.26)
- • Diversified product portfolio(p.25)
- • Profitable operations with positive ROE(p.27)
- • Established brand with quality certifications in core business(p.56)
- • Demonstrated historical profitability and revenue growth(p.66)
- • Positive operating cash flows in recent years(p.67)
- • Diversified product portfolio across wires, cables, and FMEG products serving multiple customer segments(p.136)
- • Extensive distribution network with 1,249 authorized dealers and distributors across India(p.136)
- • Strong revenue and profit growth with CAGR of 12.04% in revenue and 33.03% in PAT from FY2021 to FY2023(p.110)
- • Experienced management team with industry expertise and strategic business focus(p.137)
- • ISO 9001:2015 and ISO 14001:2015 certified manufacturing unit with quality and environmental management systems(p.144)
- • Experienced promoter leadership with 26 years in electrical industry(p.169)
- • Established board with independent directors providing governance oversight(p.174)
- • Growing revenue trajectory with consistent profitability(p.198)
- • Strong asset base with manufacturing infrastructure(p.197)
- • Established market position with consistent revenue growth in wires and cables industry(p.256)
- • Diversified product portfolio including house wires, cables, FMEG and electrical products(p.256)
- • ISO certifications and compliance with quality standards(p.256)
- • Multiple distribution channels including dealer networks and direct sales(p.257)
- • Improved profitability with profit after tax increasing 26.14% year-over-year(p.269)
- • Strong after-sales service network with 20+ service centres across regions(p.256)
Weaknesses
- • High dependency on wires & cables segment(p.42)
- • Heavy reliance on top suppliers(p.34)
- • Significant working capital tied up in receivables and inventory(p.36)
- • High raw material costs consuming majority of revenue(p.34)
- • Geographic concentration in limited regions(p.37)
- • No long-term agreements with dealers or customers(p.44)
- • Declining FMEG product sales(p.42)
- • High leverage with secured borrowings(p.46)
- • Dependence on unsecured loans that can be recalled on demand(p.47)
- • High trade receivables representing significant portion of revenue(p.51)
- • Reliance on third parties for transportation with no formal agreements(p.47)
- • Trademarks not owned by the company but licensed from promoter entities(p.49)
- • Promoters and directors involved in multiple legal proceedings(p.48)
- • Pending factory licenses and regulatory approvals for proposed manufacturing unit(p.97)
- • High dependence on volatile raw material prices, particularly copper and aluminium(p.131)
- • Relatively lower profitability margins compared to some industry peers, with PAT margin of 4.11%(p.135)
- • Conversion industry model with material costs exceeding 60% of end product costs creating margin pressure(p.128)
- • Limited direct interaction with end customers, resulting in relatively little power in the supply chain(p.128)
- • High financial leverage with significant borrowing obligations(p.197)
- • Concentration of shareholding with promoters holding 93.68% equity(p.183)
- • Thin cash reserves relative to operating needs(p.197)
- • Dependence on related party transactions for business operations(p.184)
- • High attrition rate among KMPs and SMPs exceeding industry norms(p.181)
- • Managerial remuneration exceeding statutory limits requiring shareholder waiver(p.195)
- • High dependence on a few suppliers with top 5 suppliers representing 71.93% of purchases(p.275)
- • Significant finance costs relative to revenue indicating high debt burden(p.269)
- • Debt-to-equity ratio of 0.75 indicating moderate leverage(p.270)
- • Multiple pending criminal litigations related to dishonoured cheques and disputed transactions(p.277)
- • Significant contingent liabilities including customer channel financing guarantees(p.241)
- • High customer concentration risk in receivables(p.294)
- • Significant litigation from dishonored cheques by multiple customers(p.282)
- • Promoter litigation regarding land acquisition(p.289)
- • Company does not meet Regulation 6(1) eligibility criteria(p.315)
- • Variability in operating profit performance(p.315)
Opportunities
- • Government-backed infrastructure schemes driving demand(p.25)
- • Growing renewable energy sector(p.25)
- • Organized sector expansion and consolidation(p.40)
- • EHV underground cable demand from metro projects(p.25)
- • Expansion of manufacturing capacity with new facility(p.33)
- • Product portfolio expansion into new segments(p.33)
- • Expansion into new product categories(p.86)
- • Capacity expansion in existing product lines(p.88)
- • Growth in real estate, infrastructure and related sectors demand(p.54)
- • Public listing to enhance corporate image and brand visibility(p.86)
- • Government initiatives including Pradhan Mantri Awas Yojana and Smart Cities Mission driving residential and infrastructure demand(p.131)
- • Expected industry growth at CAGR of 14.50% reaching ₹1,550 billion by FY2026 in Indian wires and cables sector(p.134)
- • Growing shift from unorganized to organized sector with organized players expected to reach 74% market share by FY23(p.121)
- • Expansion into new product lines including fire proof/survival wires, LT aluminium cables, and solar cables through proposed manufacturing unit(p.138)
- • Growing renewable energy capacity and electrification programs creating demand for specialized cables(p.120)
- • Expansion of manufacturing capacity through ongoing capital investments(p.197)
- • Diversification through group companies in complementary electrical products(p.188)
- • Access to capital markets through IPO for debt reduction and growth financing(p.217)
- • Significant industry growth potential with wires and cables market expected to expand at 14.50% CAGR(p.256)
- • Expansion into government tenders and infrastructure projects(p.257)
- • Product line expansion with recent launches of MCB and distribution boards(p.256)
- • Enhancement of house brands positioning with Action Wires brand in economical price range(p.256)
- • Potential for geographic expansion and market penetration in underserved regions(p.256)
- • Expansion into new manufacturing facility(p.294)
- • Product diversification into electrical appliances(p.282)
- • International market access through IEC registration(p.301)
- • Multi-state geographic expansion with GST registrations(p.301)
- • Quality certifications enabling market penetration(p.299)
Threats
- • Raw material price volatility and supply disruptions(p.34)
- • Intense competition from larger, better-resourced players(p.40)
- • Fragmented industry with strong unorganized sector competition(p.39)
- • COVID-19 pandemic impact on operations and demand(p.41)
- • Geographic concentration risk in Himachal Pradesh(p.43)
- • Power supply disruptions affecting manufacturing(p.44)
- • Labor-intensive operations vulnerable to strikes and wage demands(p.45)
- • Dependence on third-party manufacturers for certain products(p.45)
- • Global economic slowdown affecting demand(p.25)
- • Exposure to fluctuations in raw material costs and commodity prices(p.50)
- • Dependence on lending banks at their discretion to renew credit facilities(p.47)
- • Vulnerability to supply chain disruptions and logistics bottlenecks(p.47)
- • Exposure to regulatory changes and compliance uncertainties(p.59)
- • Interest rate risk on floating rate debt(p.51)
- • Exposure to macroeconomic downturns affecting construction sector demand(p.54)
- • Natural disasters and pandemics impacting operations(p.59)
- • Volatile raw material prices, particularly copper, creating margin pressure and unpredictability(p.131)
- • Intense competition from larger organized players with greater resources and smaller regional competitors(p.150)
- • Cyclical nature of cable industry demand requiring agility in responding to changing demand levels(p.128)
- • Low transportation costs and deregulation enabling global competition and reducing entry barriers(p.129)
- • Global slowdown and geopolitical events impacting raw material supply and market demand(p.119)
- • Significant finance costs impacting profitability amid rising interest rates(p.198)
- • Related party non-compete agreement limiting market expansion(p.191)
- • Conflict of interest with group company in overlapping electrical product business(p.191)
- • Regulatory constraints on dividend distribution due to debt covenants(p.192)
- • Volatility in raw material (copper) pricing affecting cost of materials consumed(p.257)
- • Cost of materials consumed representing 73.72% of total income indicating high commodity exposure(p.268)
- • Intense competition from Indian and international manufacturers in wires and cables(p.274)
- • Risk of payment defaults from customers as evidenced by multiple outstanding receivables(p.257)
- • Exposure to interest rate risk with 77% of borrowings at variable rates(p.239)
- • Regulatory and economic changes affecting industry dynamics and operational costs(p.257)
- • COVID-19 and similar economic disruptions impacting business operations(p.257)
- • High prevalence of customer payment defaults(p.288)
- • Land acquisition regulatory risks affecting expansion(p.294)
- • Regulatory changes to capital market access(p.329)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sanjay Gupta | Promoter | 51.95% | — |
| Sonia Gupta | Promoter | 41.72% | — |
| Sanjay Gupta | Promoter | 51.95% | — |
| Sonia Gupta | Promoter | 41.72% | — |
| Abhishek Gupta | Promoter Group | 2.35% | — |
| Aditya Gupta | Promoter Group | 0.026% | — |
| Plaza Power Solutions Private Limited | Promoter Group | 0.00026% | — |
| Plaza Cable Electric Private Limited | Promoter Group | 0.051% | — |
| Plaza Wires and Electricals Private Limited | Promoter Group | 3.87% | — |
| Sanjay Gupta | Promoter/Chairman and Managing Director | — | — |
| Mr. Sanjay Gupta | Promoter, Chairman and Managing Director | 51.95% | — |
| Mrs. Sonia Gupta | Promoter and Whole-time Director | 41.72% | — |
| Sanjay Gupta | Director | — | — |
| Sonia Gupta | Director | — | — |
| Abhishek Gupta | Director | — | — |
| Aditya Gupta | Director | — | — |
Leadership
Sanjay Gupta · Chairman and Managing Director
Ajay Batla · CFO
Bhavika Kapil · Company Secretary and Compliance Officer
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.
Plaza Wires IPO FAQs
What is the lot size of Plaza Wires IPO?
The minimum lot size of Plaza Wires IPO is 277 shares. One lot costs ₹14,958 at the cut-off price.
When does Plaza Wires IPO open and close?
Plaza Wires IPO opened for subscription on 29 Sep 2023 and closed on 05 Oct 2023.
What is the listing date of Plaza Wires IPO?
Plaza Wires IPO listed on 12 Oct 2023.