Plaza Wires up 70% since IPO; trapped in upper circuit for ten days in a row

 Plaza Wires up 70% since IPO; trapped in upper circuit for ten days in a row

Since listing, Plaza Wires' shares have been on a steady upward trajectory, reaching the upper circuit limit every day. On October 13, 2023, the company's shares were listed on stock markets and its first public offering (IPO) raised ₹71.3 crore.

Investors responded to the IPO so well that it was subscribed to 160.98 times. The stock had a fantastic beginning, trading at a premium of about 40.74% at ₹76 per share to the ₹54 issue price. At ₹80.2, it closed the first day up 48.5%.

The stock regularly reached the upper circuit limit throughout the next 10 trading sessions, which included today's transaction. This upward momentum resulted in a fantastic 70% increase for the company. In the current trading session, it reached a new high of ₹136.60. The stock has increased by an amazing 153% from its IPO price as of the current trading price.

Fast-moving electrical items, LT aluminum cable sales and marketing, and wire manufacture and sales are the activities of Plaza Wires. Building wires, often referred to as house wires, single and multicore round flexible industrial cables, as well as industrial cables for submersible pumps as well as motors are some of its main offerings in the wires and cables market.

Regarding fiscal outcomes, the organization declared a net profit of ₹7.51 crore for FY23, indicating an increase above the net profit of ₹5.95 crore for FY22 and ₹4.24 crore for FY21. Its activities brought in ₹182.60 crore in revenue in FY23, a little more than ₹176.94 crore in FY22.

According to the company's DRHP report, between fiscal year 2021 and fiscal year 2023, its revenue from operations rose at a CAGR of 12.04%, its EBITDA expanded at a CAGR of 20.22%, and its profit after tax grew at a CAGR of 33.03%.

The promoters control 69.8% of the firm, while domestic institutional investors (DIIs) and foreign institutional investors (FIIs) possess 8.3% and 10.4% of the company, respectively, according to Trendlyne holdings data. Regular shareholders will own the remaining 11.5% of the shares as of October 10, 2023.