Delhi-based Plaza Wires Limited, has filed its DRHP with plan for an IPO float of 1,64,52,000 equity shares
NEDW DELHI, May 3 (The CONNECT) - Delhi-based Plaza Wires Limited, engaged in the business of manufacturing, marketing and selling of wires, aluminium cables and fast-moving electrical goods (FMEG) has filed its Draft Red Herring Prospectus (DRHP) with the capital markets regulator, Securities and Exchange Board of India (SEBI), for its Initial Public Offering (IPO)
The IPO comprises a fresh issue of 1,64,52,000 equity shares with a face value of ₹10 per equity share. The Issue is being made through the Book Building Process. SEBI guidelines defines Book Building as "a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built-up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memoranda or offer document". The offer price is determined after the bid closing date.
Plaza Wires intends to the proceeds from its fresh issuance towards capital expenditure for setting up of a new manufacturing unit and, working capital requirements, including general corporate purposes.
The Company's product mix includes various types of wires and cables, as well as FMEG such as electric fans, water heaters, switches and switchgears, PVC insulated electrical tape, and PVC conduit pipe and accessories. In 2021, the Company launched a line of house wires under the brand "Action Wires" for products in the economical price-range. According to the Resurgent India Research Report quoted in its DRHP, Plaza Wires is one of the fastest growing manufacturers in the wires and cables industry in northern region in India, and provides extensive range of wires and cables, under its flagship brand “PLAZA CABLES” and home brands such as “Action Wires” and “PCG”.
The Company’s business model engages dealer and distribution network via 1108 authorised dealers and distributers to sell and market the Company's products, including sales through C&F agents, and direct sales to infrastructure projects. The competitors of the Company include Finolex Cables Limited, KEI Industries Limited, Havells India Limited, KEC International Limited, R R Kabel Limited, V-Guard Industries Limited, and Polycab India Limited.
It's manufacturing facility at Baddi in Himachal Pradesh has an installed production capacity of 12,00,000 coils of standard size per annum. It has proposed to set up a manufacturing facility to add 8,37,000 coils per annum to make new products such as fire-proof/survival wires, LT aluminium cables and solar cables.
Profit for the 9 month period ended on December 31, 2021 stood at₹5.74 crores on revenue of ₹ 126.6 cr. The Company clocked a profit of ₹ 4.3 crore in the and revenue from operations of ₹145.3 crore in fiscal 2021.
In India, the wire and cables industry has grown at a CAGR of approximately 13.68% in the last 5 years and in FY-21 was valued at ₹78,800 cr. The C&W industry is expected to grow to ₹1,03,300 crores in FY23, boosted by increased infra spends by the government. Demand for building wires and power cables would be spurred by government schemes such as Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya scheme) and Power for All, focusing on electrification of rural households and T&D efficiencies, as well as an increase in cabling demand from commercial establishments and public utilities.
Pantomath Capital Advisors Private Limited is the sole Book Running Lead Manager to the Issue and Kfin Technologies Limited is the Registrar to the Issue. The equity shares are proposed to be listed on BSE and NSE.