DCG Cables and Wires Ltd IPO Overview

DCG Cables and Wires Ltd IPO Overview/Pixabay

VoM News Desk | April 9, 2024 | 02:43 PM IST | Breaking News | Follow on Google News

DCG Cables and Wires Ltd IPO Overview

DCG Cables and Wires Ltd IPO Overview

DCG Cables & Wires Ltd IPO, which opened for subscription on April 8 and will close on April 10, offers shares priced at ₹100 apiece. The IPO consists of a fresh issue of 49,99,200 equity shares with a face value of ₹10, aiming to raise ₹49.99 crore.

The company specializes in manufacturing various copper wire products used in transformers, including Copper Tapes, Paper Covered Copper Strips and Wires, Bare Copper Wires and Strips, and Fiber Glass Copper products. With three production facilities in Vadodara and Ahmedabad, DCG Cables & Wires Ltd caters to a range of applications requiring ideal conductivity.

As of day 2, the IPO subscription status stands at 3.24 times, with the retail portion oversubscribed 5.18 times and the NII portion booked 1.30 times. The company intends to utilize the net proceeds for public issue expenses, general corporate purposes, working capital requirements, and capital expenditure.

The IPO’s grey market premium (GMP) is +14, indicating a premium of ₹14 in the grey market. Analysts anticipate a solid listing based on the activity of the past seven sessions, with an expected listing price of ₹114 per share.

Overall, the IPO appears attractively priced, considering the company’s focus on high-margin products and its performance in FY24. Long-term gains may be expected for knowledgeable investors with modest investments, as per market analysts.

VoM News Desk

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