Plaza Wires shares continue their stellar run, hit 5% upper circuit on 2nd day of trading
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The gains were despite a weak Friday trading session which saw Nifty50 hitting a low of 19,635.30.
Shares of Plaza Wires debuted at a strong premium of 56% over the issue price. The listing was in line with expectations, given the overwhelming response to the IPO. The IPO of Plaza Wires was booked nearly 161 times, making it the most oversubscribed issue of the year and it was listed at Rs 76 on the NSE while at 84 on the BSE.
Analysts said the stock might give a decent upside even from the current levels as the wires and cables (W&C) segment is currently doing well.
“The market is growing leaps and bounds. Short-term investors may want to book profits, but those who are looking for the long run can hold the stock, which might repay decent returns in the next six months,” said Avinash Gorakshakar of Profitmart Securities.
Plaza Wires, a leading manufacturer of wires and cables with a wide product range and a strong customer base, has demonstrated a strong track record of growth in the recent past.
The company’s product mix has different types of wires and cables, and fast-moving electrical goods such as electric fans, water heaters, switches and switchgears, Poly Vinyl Chloride insulated electrical tape and Poly Vinyl Chloride conduit pipe and accessories.Its competitive strengths include its product portfolio focused on various customer segments, distribution network, experienced management and a dedicated employee base.
“The company has a strong financial performance, with consistent revenue and profit growth in recent years. Investors may consider booking profit after this listing, while those who are looking for a long-term investment should maintain a stop loss of Rs 68,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
Net proceeds that the company raised via the IPO are proposed to be utilised towards funding the capex for setting up a new manufacturing unit for house wires, fire-resistant wires and aluminum cables to expand its product portfolio. Further, the proceeds will also be used for funding working capital requirements and other general corporate purposes.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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