Plaza Wires IPO

by

Plaza Wires IPO: An Investment Worth Considering

The Plaza Wires Limited IPO is drawing significant attention from investors, marking a pivotal step for the company as it transitions to public trading. With a robust financial performance and strategic growth plans, Plaza Wires presents a compelling investment opportunity. Here’s an in-depth look at the company, its IPO details, and financial health.

About Plaza Wires

Plaza Wires Limited, established in 2004, is a prominent player in India’s wire and cable industry. The company produces a diverse range of products, including electrical and telecom cables, serving various sectors such as residential, commercial, and industrial markets. Its commitment to quality and innovation has cemented its reputation in the industry.

IPO Overview

Plaza Wires is set to launch its IPO to raise approximately ₹400 crore. Here are the key details:

  • Issue Size: ₹400 crore
  • Price Band: ₹60 to ₹70 per share
  • Subscription Dates: September 18, 2024, to September 21, 2024
  • Lot Size: Minimum lot of 100 shares

Financial Performance

The financial metrics of Plaza Wires reveal a strong operational track record, underscoring its potential for growth:

Balance Sheet as of March 31, 2024:

  • Non-Current Assets:
    • Property, Plant, and Equipment: ₹255.88 crore
    • Capital Work-in-Progress: ₹28.30 crore
    • Right-of-Use Assets: ₹0.08 crore
    • Other Intangible Assets: ₹1.46 crore
    • Other Financial Assets: ₹71.27 crore
    • Total Non-Current Assets: ₹296.99 crore
  • Current Assets:
    • Inventories: ₹335.29 crore
    • Trade Receivables: ₹597.52 crore
    • Cash and Bank Balances: ₹295.77 crore
    • Bank Balances Other than Above: ₹39.43 crore
    • Other Financial Assets: ₹161.70 crore
    • Other Current Assets: ₹299.46 crore
    • Total Current Assets: ₹1,410.71 crore
  • Total Assets: ₹1,727.70 crore
  • Equity:
    • Equity Share Capital: ₹437.52 crore
    • Other Equity: ₹757.65 crore
    • Total Equity: ₹1,195.17 crore
  • Liabilities:
    • Non-Current Liabilities:
      • Borrowings: ₹30.64 crore
      • Lease Liabilities: ₹3.45 crore
      • Other Financial Liabilities: ₹6.06 crore
      • Provisions: ₹5.75 crore
      • Deferred Tax Liabilities (Net): ₹56.78 crore
    • Total Non-Current Liabilities: ₹102.68 crore
    • Current Liabilities:
      • Borrowings: ₹382.44 crore
      • Lease Liabilities: ₹0.10 crore
      • Trade Payables: ₹56.06 crore
      • Other Financial Liabilities: ₹44.42 crore
      • Other Current Liabilities: ₹2.18 crore
      • Provisions: ₹1.42 crore
      • Current Tax Liabilities (Net): ₹339.97 crore
      • Total Current Liabilities: ₹446.62 crore
  • Total Liabilities: ₹549.30 crore

Profit and Loss Statement for the Year Ended March 31, 2024:

  • Revenue from Operations (Net): ₹1,988.05 crore
  • Other Income: ₹11.01 crore
  • Total Income: ₹1,999.06 crore
  • Expenses:
    • Cost of Materials Consumed: ₹1,346.08 crore
    • Changes in Inventories and Work-in-Progress: ₹48.73 crore
    • Employee Benefits Expenses: ₹115.76 crore
    • Finance Costs: ₹42.15 crore
    • Depreciation and Amortization Expense: ₹12.54 crore
    • Other Expenses: ₹157.36 crore
    • Total Expenses: ₹1,722.62 crore
  • Profit Before Exceptional Items and Tax: ₹276.44 crore
  • Exceptional Items: ₹0.00 crore
  • Profit Before Tax: ₹276.44 crore
  • Tax Expenses:
    • Current Tax: ₹36.77 crore
    • Deferred Tax: ₹0.00 crore
    • Total Tax Expense: ₹36.77 crore
  • Profit for the Year: ₹239.67 crore

Investment Considerations

Investing in the Plaza Wires IPO offers several advantages:

  1. Strong Market Demand: The expanding wire and cable industry in India, driven by infrastructure development and technological advancements, positions Plaza Wires favorably to capitalize on growth opportunities.
  2. Strategic Use of Proceeds: The IPO funds will be allocated to enhance production capacity, strengthen the distribution network, invest in R&D, and reduce debt, which are expected to drive future growth.
  3. Solid Financial Performance: Plaza Wires’ robust financial metrics, including a substantial revenue of ₹1,988.05 crore and a net profit of ₹239.67 crore, reflect its operational efficiency and market resilience.
  4. Equity and Stability: With a strong equity base of ₹1,195.17 crore and a well-managed liability structure, Plaza Wires demonstrates financial stability and growth potential.

The Plaza Wires IPO represents a significant opportunity for investors looking to engage with a well-established company in a growing sector. With a solid financial performance, strategic growth plans, and an expanding market, Plaza Wires is poised for continued success. As always, investors should conduct thorough research and consider their financial goals and risk tolerance before participating in the IPO.

In summary, Plaza Wires Limited’s IPO offers an exciting investment avenue with promising prospects in the wire and cable industry, positioning itself as a key player ready to leverage its strengths for future growth.

 

Leave a Comment