The Delhi-based company is engaged in the business of manufacturing, marketing and selling wires, aluminium cables and fast-moving electrical goods.
According to its DRHP, the stake sale will entirely consist of the issuance of 1,64,52,000 fresh equity shares, with a face value of Rs 10 each.
The net proceeds from its fresh issuance will be used towards capital expenditure for setting up a new manufacturing unit and working capital requirements of the company, including general corporate purposes.
The company’s product mix includes various types of wires and cables, as well as, FMEG such as electric fans, water heaters, switches and switchgear, PVC insulated electrical tape, and PVC conduit pipe and accessories.
The company via its 1,108 authorised dealers and distributors sells and markets its products, including sales through C&F agents, and direct sales to infrastructure projects.
The company has an existing manufacturing facility at Baddi (Himachal Pradesh) and has an installed production capacity of 12,00,000 coils of standard size per annum.
It has proposed to set up a manufacturing facility to add 8,37,000 coils per annum to manufacture new products such as fire-proof, survival wires, LT aluminium cables and solar cables.
For the nine months ended December 31, 2021, the company reported a profit of Rs 5.74 crore over a revenue of Rs 126.69 crore. Plaza Cables clocked a net profit of Rs 4.37 crore for the financial year 2020-21, with revenue from operations of Rs 145.38 crore.
The company has reserved 75 per cent of equity shares for qualified institutional buyers (QIBs), whereas non-institutional bidders will get 15 per cent shares. The remaining 10 per cent shares will be allocated to the retail bidders.
Pantomath Capital Advisors Private Limited is the sole Book Running Lead Manager to the Issue and Kfin Technologies Limited is the Registrar to the Issue. The equity shares are proposed to be listed on BSE and NSE.
