Plaza Wires Soars on Listing Day with Impressive Premium

Plaza Wires Soars on Listing Day with Impressive Premium
Plaza Wires Soars on Listing Day with Impressive Premium
Plaza Wires Soars on Listing Day with Impressive Premium
Plaza Wires Soars on Listing Day with Impressive Premium

Plaza Wires Soars on Listing Day with Impressive Premium

Plaza Wires Soars on Listing Day with Impressive Premium

Plaza Wires Soars on Listing Day with Impressive Premium

On the day of its listing, Plaza Wires witnessed a remarkable surge in its share price, trading at a significant premium. On the NSE, Plaza Wires’ share price was listed at ₹76 per share, marking a substantial 40.7% increase over the issue price of ₹54. Similarly, on the BSE, Plaza Wires’ price opened at ₹84 per share.

Successful Plaza Wires IPO Journey

Plaza Wires’ journey began with its initial public offering (IPO), which was open for subscription from Friday, September 29, and closed on Thursday, October 5. The company had set a price band of ₹51 to ₹54 per equity share for the proposed IPO. Investors were allowed to bid for a minimum of 277 equity shares and in multiples of 277 equity shares thereafter.

The Plaza Wires IPO garnered significant attention from investors. On the very first day of its subscription, it was oversubscribed by 4.73 times. The enthusiasm continued on the second day, with a subscription status of 27.90 times. By the third day, it reached an astonishing 62.75 times.

Reserved Categories in the IPO

Plaza Wires thoughtfully allocated the shares in its IPO. Not less than 75% of the shares were reserved for Qualified Institutional Buyers (QIB), while not more than 15% were allocated for Non-Institutional Investors (NII). Retail Investors were given not more than 10% of the total offer.

The company outlined the utilization of the net proceeds from the IPO. These funds would go towards various purposes, including funding the capital expense for establishing a new manufacturing facility for the production of house wires, fire-resistant wires, cables, aluminium cables, and solar cables to diversify the product line. The net proceeds would also support the company’s working capital requirements and general corporate purposes.

Pantomath Capital Advisors Pvt Ltd served as the book-running lead manager for Plaza Wires’ IPO, while Kfin Technologies Limited acted as the issue’s registrar.

Strong Grey Market Premium (GMP)

The grey market premium (GMP) for Plaza Wires’ IPO remained strong, with a GMP of +23, which has been consistent over the past eight sessions. This premium suggests that Plaza Wires’ shares were trading at ₹23 above the issue price in the grey market on the day before the listing.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Plaza Wires’ shares was projected at ₹77 per share, marking a substantial 42.59% increase over the IPO price of ₹54.

Bright Listing Prospects

In the past 18 sessions, grey market activities indicate a positive trend in the IPO GMP, anticipating a strong listing. The GMP ranges from ₹0 to ₹24, with the lower end showing investor confidence. The ‘grey market premium’ reflects investors’ willingness to pay more than the issue price.

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