The initial public offering (IPO) of Plaza Wires, which opened for subscription on Friday, September 29, has been subscribed over 11 times as of Tuesday. The retail portion of the IPO saw an overwhelming response, being oversubscribed 57.29 times. The company set the price band at ₹51-54 per equity share for the proposed public offer.
Plaza Wires has reserved not less than 75% of the shares in the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non-Institutional Investors (NII), and not more than 10% of the offer is reserved for Retail Investors. On day two of the subscription, the retail investors portion was subscribed 57.29 times, NII portion was subscribed 14.01 times, and QIB portion was subscribed 31%.
The IPO received bids for 10,52,67,202 shares against 94,96,114 shares on offer. The retail investors' portion received bids for 7,56,19,338 shares against 13,20,015 shares on offer for this segment. The non-institutional investors' portion received bids for 2,77,44,043 shares against 19,80,023 on offer for this segment, while the QIBs portion received bids for 19,03,821 shares against 61,96,076 shares on offer.
The Plaza Wires IPO is completely a fresh issue of 13,200,158 equity shares with no offer for sale (OFS) component and is worth ₹71.28 crores. The company plans to use the net proceeds from the offering to fund capital expenses 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. The funds will also be used for the company's working capital needs and general corporate purposes. Pantomath Capital Advisors Pvt Ltd is the book-running lead manager for the IPO, while Kfin Technologies Limited is the issue's registrar.
The grey market premium (GMP) of Plaza Wires IPO stood at +24, indicating that Plaza Wires shares were trading at a premium of ₹24 in the grey market. Based on the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Plaza Wires share price was indicated at ₹78 apiece, which is 44.44% higher than the IPO price.
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