Plaza Wires Ltd IPO oversubscribed 4.69 times on Day 1; Retail Investors lead the way

 The Initial Public Offering of Plaza Wires Limited was subscribed 4.69 times on the first day of bidding.

The issue received bids of 4,45,60,713 shares against the offered 94,96,114 equity shares, at a price band of ₹51-54, according to the data available on the stock exchanges.

Retail Portion was the most subscribed with 26.60 times, followed by Non-Institutional Investors with 4.76 times, whereas Qualified Institutional Buyer Portion have just started bidding. The issue kicked off for subscription on Friday, September 29, 2023 and will close on Thursday, October 5, 2023.

A day prior to the opening of the issue, Plaza Wires Ltd had raised Rs 20 crore from anchor investors. Investors who participated in the anchor were Chanakya Opportunities Fund, and Astorne Capital UCC-ARVEN.

Leading brokerages like Investmetz.com and Indsec Securities have given a “SUBSCRIBE” rating to the issue, citing that, at the upper price band of Rs. 54 per share, is reasonably priced with a price-to-earnings (P/E) ratio of 31.5x based on FY23 earnings (Post issue) and is in line when compared to its listed peers.

In addition, market experts are closely monitoring Plaza Wires, anticipating a positive reception from investors due to its competitive pricing and promising outlook within the sector.

Pantomath Capital Advisors Private Limited is the sole book running lead manager and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.