Excellent Wires and Packaging IPO : opened for public subscription on September 12, 2024. This SME (Small and Medium Enterprise) IPO has garnered significant interest, being subscribed over 3.45 times by the second day of bidding. Investors are keen to participate in the company’s growth story as it continues to expand its operations in the wire and packaging industry.
Founded in March 2021, Excellent Wires and Packaging Limited has established itself as a growing player in the production of various wires and wire ropes, which are sold under the “Excellent” brand. The company’s offerings cater to a wide range of industries, demonstrating both product diversity and a focus on quality. As the IPO progresses, here’s a detailed breakdown of the subscription status, financials, and objectives of the public offering.
Table of Contents
About Excellent Wires and Packaging IPO
Established: March 2021
Industry: Wires and Wire Ropes Manufacturing
Brand: Excellent
Excellent Wires and Packaging Limited is a relatively new player in the market, but in just a few years, it has managed to carve out a niche for itself. The company specializes in the production of various types of wires and wire ropes, which serve several industrial purposes. Their product line includes:
- Spring Steel Wire
- High Carbon Wire
- Galvanised Wire (GI Wire)
- Other specialized wires for multiple applications.
These products are essential for industries such as construction, manufacturing, and infrastructure development, ensuring a broad customer base.
For the fiscal year ending in March 2024, Excellent Wires and Packaging Limited reported total revenues of ₹15.4 crore and a net profit of ₹82 lakh. The company’s strong financial performance and steady growth have been key drivers of investor interest in the IPO.
Excellent Wires and Packaging IPO Subscription Status
The subscription status of the Excellent Wires and Packaging IPO has been a focal point since its opening. The IPO was highly anticipated by both retail and institutional investors, resulting in a solid subscription performance on the second day of bidding.
IPO Subscription on the Second Day (September 12):
- Total Subscription: 3.45 times
- Retail Category Subscription: 61.2 times
- Other Categories: 0.78 times
By the second day, the IPO received 45,80,800 applications against an offer of 1,328,000 shares. The substantial oversubscription in the retail category highlights the confidence small investors have in the company. In contrast, the other categories, including Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs), saw more moderate interest. However, with one more day of bidding left, these numbers are expected to rise further.
Excellent Wires and Packaging IPO Details
The Excellent Wires and Packaging IPO officially opened for subscription on September 11, 2024, and will close on September 13, 2024. The IPO consists entirely of a fresh issue of 14 lakh shares, amounting to ₹12.60 crore.
Key Details of the IPO:
- Issue Size: ₹12.60 crore
- Number of Shares Offered: 14 lakh shares
- IPO Price: ₹90 per share
- Face Value: ₹10 per share
- Type of Issue: Fixed Price
- Listing Exchange: NSE SME
The fixed-price structure simplifies the bidding process for investors, making it easier to participate. At ₹90 per share, the price point is accessible for retail investors, which explains the heavy subscription in that category.
Financial Performance of Excellent Wires and Packaging
In just a few years since its inception, Excellent Wires and Packaging Limited has demonstrated commendable financial growth. For the fiscal year ending March 2024, the company reported:
- Total Revenue: ₹15.4 crore
- Net Profit: ₹82 lakh
The company’s revenue growth is indicative of its ability to scale operations efficiently in a competitive industry. With increasing demand for its products across various sectors, Excellent Wires and Packaging Limited is poised for further expansion. The net proceeds from the IPO will support this growth by financing key initiatives that will enhance the company’s production capabilities.
Objectives of the IPO
The primary goal of Excellent Wires and Packaging’s IPO is to raise funds that will be utilized for the company’s expansion plans. The net proceeds from the public offering will be allocated to several key areas, including:
-
Land Acquisition and Building Construction: A portion of the funds will be used to acquire land and construct facilities that will support the company’s growing production needs.
-
Purchasing Plant and Machinery: Excellent Wires and Packaging aims to enhance its manufacturing capacity by investing in new plant and machinery. This will enable the company to increase output, meet rising demand, and improve operational efficiency.
-
Meeting Working Capital Needs: Part of the funds will go towards meeting the company’s working capital requirements, ensuring smooth day-to-day operations as the business expands.
-
General Corporate Purposes: A portion of the proceeds will be allocated to general corporate purposes, providing the company with the financial flexibility needed to pursue strategic initiatives.
-
Covering Offer-Related Expenses: The company will use a part of the funds to cover expenses related to the IPO process, including marketing, legal, and administrative costs.
IPO Allotment and Listing Dates
Investors are keenly awaiting the allotment of shares, which is expected to be finalized on Monday, September 16, 2024. Once the allotment is complete, the shares will be listed on the NSE SME platform, providing investors with an opportunity to trade the stock in the secondary market.
Key Dates to Remember:
- IPO Opening Date: September 11, 2024
- IPO Closing Date: September 13, 2024
- Allotment Finalization Date: September 16, 2024
- Listing Date (Tentative): September 19, 2024
The listing of the shares on the NSE SME will provide liquidity to the investors and offer an opportunity for price discovery in the open market. The listing price will depend on the demand and supply dynamics on the listing day, but given the oversubscription, there is potential for a premium listing.
Lead Manager and Registrar for the IPO
The Excellent Wires and Packaging IPO is being managed by Inventure Merchant Banker, which is serving as the lead manager for the issue. Bigshare Services is acting as the registrar for the IPO, handling the administrative aspects of the offering, including the allocation of shares and investor communication.
Both the lead manager and registrar are experienced in handling IPOs for SME companies, ensuring that the process runs smoothly and efficiently. Investors can expect a professional and transparent experience throughout the subscription and allotment phases.
Conclusion: A Promising IPO for Investors
The IPO of Excellent Wires and Packaging Limited offers investors a unique opportunity to participate in the growth of a young, fast-growing company in the wire and packaging industry. With its diverse product offerings, strong financial performance, and well-defined expansion plans, Excellent Wires and Packaging is well-positioned to capitalize on the increasing demand for its products.
The substantial oversubscription on the second day of bidding reflects strong investor confidence in the company’s future prospects. As the IPO progresses, it will be interesting to see how the demand evolves, particularly in the institutional investor categories.
For retail investors, the fixed-price IPO at ₹90 per share presents an attractive entry point. Given the company’s growth trajectory and the strategic use of IPO proceeds, Excellent Wires and Packaging Limited’s public offering is shaping up to be a promising investment opportunity.
Investors should keep an eye on the allotment and listing dates as they approach. With the company set to list on the NSE SME, there could be significant potential for value creation in the secondary market.