Plaza Wires Limited files DHRP for IPO with Sebi
- ByStartupStory | May 4, 2022
Plaza Wires Limited is a Delhi-based company that has recently filed a Draft Red Herring Prospectus (DRHP) with the capital market regulator Securities and Exchange Board of India (Sebi) regarding its IPO. As per its DRHP, the stake sale will entirely contain the fresh issue of 1,64,52,000 equity shares with a face value of Rs 10 per equity share.
The fresh issue is made available through the Book Building process where approximately 75% of the issue shall be available to the Qualified Institutional Buyers and around 155 of the issue shall be usable to the Non-Institutional Bidders and not more than 10% of the issue shall be available for the Retail Individual Bidders
The net proceeds of the company from its fresh issuance will be utilised towards capital expenditure for establishing a new manufacturing unit and working capital requirements along with general corporate purposes of the company. The company primarily focuses on manufacturing, marketing and selling wires, aluminium cable and Fast-Moving Electrical Goods (FMEG), switches and PVC insulated electrical tape and pipe.
The company has 1,108 authorised dealers and through them, it sells and markets its products including sales via C&F agents. It has a manufacturing unit in Baddi, Himachal Pradesh with a production capacity of 12,00,000 coils of standard size per annum. It has also projected to set up a manufacturing unit to add 8,37,000 coils per year to manufacture fresh products like fire-proof, survival wires and solar cables.
Plaza Wires recorded a profit of Rs 5.74 crore over a revenue of 126.69 crores at the end of December 2021. It also reported a net profit of Rs 4.37 crore for the fiscal year 2020-21.
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