PLAZA WIRES LIMITED

PLAZA WIRES LIMITED - IPO DETAILS 

Company Overview 

Plaza Wires Limited, established in 2006, is a company primarily involved in the production and sale of wires, LT aluminum cables, and fast-moving electrical goods (FMEG). It markets its products under the prominent brand "PLAZA CABLES," as well as home brands like "Action Wires" and "PCG." The company's product portfolio encompasses a wide array of items, including different types of wires and cables, along with FMEG products such as electric fans, water heaters, switches and switchgears, PVC insulated electrical tape, and PVC conduit pipe & accessories. In the wires and cables segment, its key offerings comprise building wires (also known as house wires), single & multicore round flexible industrial cables, and industrial cables. 

Plaza Wires operates its manufacturing unit in Baddi, Himachal Pradesh, with a production capacity of 1.2 million coils per annum. The company employs various distribution channels for product sales, tailored to different geographical regions and industry standards. Its business model includes dealer and distribution networks for product sales and promotion, facilitated by sales through C&F agents. Dealers and distributors are chosen based on their sales networks and market reputation. Additionally, Plaza Wires actively participates in government tenders to supply products for government projects and engages in direct sales to infrastructure projects. Approximately 3.5% of its sales are strategically directed towards government contracts, while the majority, accounting for 96.4%, is focused on dealers, distributors, and direct sales. 

Objective of the IPO 

Here are a few quick reasons why Plaza Wires Limited going public:  

1. Funding the capital expenditure towards setting up a new manufacturing unit for house wires, fire-resistant wires & cables, aluminum cables, and solar cables to expand the product portfolio. 

2. Funding the working capital requirements of the company. 

3. Allocating funds for overarching corporate needs and objectives. 

Company Financials 

Key Performance Indicator 

Pros 

1. The company takes pride in its extensive distribution network spanning across India, encompassing more than 1249 authorized dealers and distributors. Furthermore, it maintains a presence through three branch offices strategically located in Rajasthan, Uttarakhand, and Uttar Pradesh. 

2. Plaza Wires Limited presents a versatile array of products, encompassing wires and cables, along with a comprehensive range of FMEG items such as electric fans, water heaters, switches and switchgears, PVC insulated tape, and PVC conduit pipe & accessories. 

3. Plaza Wires Limited assumes a crucial role across various sectors, including communication, automotive, power, infrastructure, and household applications. Given India's status as the fastest-growing telecom market worldwide and the government's ambitious housing initiatives, there is a persistent and robust demand anticipated for the company's cable products. 

4. The company demonstrates excellence in strategic marketing and brand development by actively investing in campaigns aimed at augmenting brand visibility and awareness. It engages with critical stakeholders through events such as Electrician Meets, distributor and dealer gatherings, and customer-centric advertising initiatives, all of which serve to foster brand loyalty and underscore the commitment to product quality. 

Cons 

1. The inability to execute the construction of the planned manufacturing unit and broaden the product portfolio within the projected timeframe carries the risk of impeding business expansion, hindering cost-saving efforts, affecting competitive positioning, and potentially reducing profitability. 

2. The financial well-being of the company is primarily contingent on the sales of its Wires and Cables products. Any failure to accurately anticipate customer preferences, maintain stringent product quality standards, or adjust to reduced demand for these products could potentially have adverse repercussions on the business.  

3. Plaza Wires derives a substantial portion of its sales revenue from its operations in Delhi, Uttar Pradesh, Haryana, Kerala, and Uttarakhand, collectively contributing to 75% of its total revenue. It's worth noting that any demographic shifts or economic changes occurring in these regions have the potential to significantly impact the company's business operations and financial performance. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”