About Company’s Business:
The company holds ISO 9001:2015 and 14001:2015 certifications and is actively involved in the manufacturing and distribution of wires, LT aluminium cables, and a range of fast-moving electrical goods. These products are marketed under our flagship brand “PLAZA CABLES” and our proprietary brands like “Action Wires” and “PCG.” In 2021, we introduced a line of house wires under the “Action Wires” brand, targeting the economical price range segment. Our product portfolio encompasses various types of wires and cables, along with a diverse range of fast-moving electrical goods, including electric fans, water heaters, switches, switchgears, Poly Vinyl Chloride insulated electrical tape, and Poly Vinyl Chloride conduit pipes & accessories.
About the Industry:
Regarding the industry landscape, the global economic growth outlook indicates a decline from an estimated 3.5 percent in 2022 to 3.0 percent in both 2023 and 2024. While the May 2023 forecast shows a slight improvement compared to the April 2023 World Economic Outlook (WEO), it remains relatively subdued in historical context. The ongoing efforts to combat inflation through central bank policy rate hikes continue to exert downward pressure on economic activity. Projections suggest that global headline inflation will decrease from 8.7 percent in 2022 to 6.8 percent in 2023 and further to 5.2 percent in 2024. However, core inflation is expected to decline at a more gradual pace, and inflation forecasts for 2024 have been adjusted upward.
In the context of the C&W industry, it is anticipated to expand to â‚ą1,033 billion in FY23, driven by heightened infrastructure investments by the government. Initiatives such as the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya scheme) and Power for All, which focus on rural household electrification and enhancing Transmission & Distribution efficiencies, are expected to fuel demand for building wires and power cables. Additionally, commercial establishments and public utilities are likely to contribute to increased cabling requirements. The growth in renewable energy capacities will drive the need for solar cables and elastomeric cables used in windmill applications. In Tier I cities, rising demand, coupled with space constraints for tower installations and infrastructural projects like metros, has led to a surge in demand for Extra High Voltage (EHV) underground cables.
Key Financial Information (â‚ą in lakhs):
| Particulars | Year Ended March 31, 2023 | Year Ended March 31, 2022 | Year Ended March 31, 2021 |
|---|---|---|---|
| Equity Share Capital (in â‚ą) | 305.52 | 305.52 | 38.19 |
| Net Worth (in â‚ą) | 530.77 | 455.15 | 394.79 |
| Revenue from Operations (in â‚ą) | 1,824.92 | 1,767.74 | 1,453.78 |
| Total Income (in â‚ą) | 1,825.95 | 1,769.36 | 1,455.95 |
| Restated Profit for the Year (in â‚ą) | 75.10 | 59.54 | 42.44 |
| Basic Earnings per Share (in â‚ą) | 2.46 | 1.95 | 1.39 |
| Diluted Earnings per Share (in â‚ą) | 2.46 | 1.95 | 1.39 |
| Return on Net Worth for Equity Shareholders (%) | 14.15 | 13.08 | 10.75 |
| Net Asset Value per Equity Share (in â‚ą) | 17.37 | 14.90 | 12.92 |
| Total Borrowings (in â‚ą) | 396.75 | 400.93 | 433.04 |
Note: All figures are in â‚ą million, except per share EPS.
Objective of the Issue:
- Funding the capital expenditure towards setting up a new manufacturing unit for house wires, fire-resistant wires & cables, aluminum cables, and solar cables to expand the product portfolio.
- Funding the working capital requirements of the company.
- General corporate purposes.
For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.
| Important information regarding the IPO | |
|---|---|
| Open Date | Friday, September 29, 2023 |
| Close Date | Wednesday, October 4, 2023 |
| Issue Size | â‚ą71.28 crores |
| Price | â‚ą51 to â‚ą54 per share |
| Lot Size | 277 shares |
| Basis of Allotment | Monday, October 9, 2023 |
| Initiation of Refunds | Tuesday, October 10, 2023 |
| Credit of Shares to Demat | Wednesday, October 11, 2023 |
| Listing Date | Thursday, October 12, 2023 |
How to apply for this IPO?
You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.
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