This newly listed stock has zoomed nearly 100% against its issue price

Shares of Plaza Wires were locked in the upper circuit for the sixth straight day on the BSE

Shares of Plaza Wires were locked in the 5 per cent upper circuit on BSE for the sixth straight day at Rs 107.49 in Friday trade.

There were no sellers on the counter, as of 11:04 am. The stock price of the electrical cables company has almost doubled or zoomed 99 per cent against its issue price of Rs 54 per share. The company made its stock market debut on October 12.

A combined 654,445 equity shares changed hands and there were pending buy orders for a combined around 1 million shares on the NSE and BSE.

Currently, Plaza Wires is trading under the Trade for Trade segment (T Group) on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions.

The trading in the equity shares of Plaza Wires shall be transferred from T Group to Rolling segment with effect from Friday, October 27, 2023.

Accordingly, the dealings in the equity shares of the company will be shifted under B Group, BSE said in a notice.

The Rs 71.28 crore-IPO received a healthy subscription and was subscribed 160.97 times, making it one of the most oversubscribed IPOs of the year.

All investors were aggressive in terms of bidding, with retail investors buying 374.81 times the allotted quota, qualified institutional investors (QIIs) 42.84 times and high net-worth individuals (HNIs) 388.09 times.

Plaza Wires is engaged in the business of manufacturing and selling of wires and selling and marketing of LT aluminium cables and fast moving electrical goods (FMEG) under the flagship brand “PLAZA CABLES” and home brands such as “Action Wires” and “PCG”.

Plaza Wires is one of the growing manufacturers in the wires and cables industry in northern region in India and provides extensive range of wires and cables. Their product mix comprises different type of wires and cables, and FMEG such as electric fans, water heaters, switches and switchgears, PVC insulated electrical tape and PVC conduit pipe & accessories.

The company is in the process of expanding their manufacturing capacities for existing products and also intends to add manufacturing capacities for new product line. The new facility is proposed to have additional installed capacity of 837,000 coils p.a. and 8,700 km cables per annum.

Plaza Wires intends to expand its market share by targeting key growth sectors such as mining, oil and gas, shipping, power, infrastructure, construction, automotive, telecommunication and agriculture.

It seeks to expand its customer base and utilize its new, proposed additional capacity to develop new products for these sectors.

Demand for W&Cs and the FMEG industry is seasonal in nature. The business of the company is dependent on the performance of the real estate, infrastructure, and other related industries, where its products are utilized.

Uncertainty regarding the real estate market, infrastructure sector, economic conditions and other factors beyond its control could adversely affect demand for the products of the company, brokerage Capital Market said in an IPO note.