What You Must Know About Excellent Wires and Packaging IPO: Price Band ₹90 Per Share

Incorporated in March 2021, Excellent Wires and Packaging Limited is a manufacturer of a wide range of wires and wire ropes under the brand name "Excellent". The company's product portfolio includes Spring Steel Wire, High Carbon Wire, Galvanised Wire (GI Wire), and other types for various applications. Their offerings can be categorized into three main segments: Brass Wires & Products, Steel Wires & Products, and Other Products, including Packaging Products.
Excellent Wires and Packaging Limited supplies its products to diverse industries, such as Packaging, Engineering, Stationery, Imitation Jewelry, and Wires and cable. The company has been awarded ISO 9001:2015 Certification, an internationally recognised standard for ensuring effective quality management. As of July 2024, the company employed 18 people across various departments.

The Objective of the Issue

1. Acquisition of Land and Construction of Building: The company plans to use some of the IPO proceeds to acquire land and construct a building for their proposed manufacturing facility at Wada.
2. Acquisition of Plant & Machineries: Funds will be allocated towards acquiring new plants and machinery for the proposed manufacturing facility.
3. Funding additional Working capital requirements: The IPO will help meet the company's increasing working capital needs as it expands operations.
4. General Corporate Purposes: A portion of the funds will be used for general corporate activities that align with the company's strategic goals.

Highlights of Excellent Wires and Packaging IPO

Excellent Wires and Packaging IPO is set to launch with a fixed price issue of ₹12.60 crores. The issue comprises a fresh issue of 14 lakh shares. Here are the key details of the IPO:

• The IPO opens for subscription on 11th September 2024 and closes on 13th September 2024.
• The allotment is expected to be finalized on 16th September 2024.
• Refunds will be initiated on 17th September 2024.
• Credit of shares to Demat accounts is also expected on 17th September 2024.
• The company will tentatively list on NSE SME on 19th September 2024.
• The price band is set at ₹90 per share.
• The lowest lot size for the IPO application is 1600 shares.
• Retail investors need to invest a minimum of ₹144,000.
• The minimum investment for HNI is 2 lots (3,200 shares), amounting to ₹288,000.
• Inventure Merchant Banker Services Pvt Ltd is the book-running lead manager for the IPO.
• Bigshare Services Pvt Ltd serves as the registrar.
• Inventure Growth & Securities is the market maker.

Excellent Wires and Packaging IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 13th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. It's important to note that all UPI mandates will only be accepted until this cut-off time on the IPO closure day, as per exchange guidelines. Investors must complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Excellent Wires and Packaging IPO Issue Details/Capital History

The Excellent Wires and Packaging IPO is scheduled from 11 September to 13 September 2024, with a fixed price of ₹90 per share and a face value of ₹10. The lot size is 1,600 shares, and the total issue size is 1,400,000 shares, raising up to ₹12.60 crores through a fresh issue. The IPO will be listed on the NSE SME, with the shareholding increasing from 3,835,400 pre-issue to 5,235,400 post-issue. Inventure Growth & Securities is the market maker responsible for 72,000 shares within the issue.

Excellent Wires and Packaging IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for at least 1,600 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and high-net-worth individuals (HNI), expressed in shares and monetary values.

SWOT Analysis: Excellent Wires and Packaging Limited

Strengths:

• Diversified product portfolio catering to various industries
• ISO 9001:2015 certification ensuring quality management
• Established brand name "Excellent" in the wire and packaging industry

Weaknesses:

• Relatively new company, incorporated in March 2021
• Small team of 18 employees as of July 2024
• Limited operational history compared to established competitors

Opportunities:

• Expansion into new geographical markets
• Potential for product diversification
• Growing demand in packaging and engineering industries

Threats:

• Intense competition in the wire and packaging sector
• Fluctuations in raw material prices
• Regulatory changes affecting the manufacturing industry

Financial Highlights: Excellent Wires and Packaging Limited

Below are the financial results for the fiscal years FY24, FY23, and FY22:

The financial performance of Excellent Wires and Packaging Limited over the fiscal years ending March 2022, 2023, and 2024 reveals a strong trajectory of growth. The company's assets increased significantly from ₹242.63 lakhs in FY22 to ₹705.08 lakhs in FY24. Revenue grew consistently, rising from ₹728.85 lakhs in FY22 to ₹1,540.82 lakhs in FY24.

The profit after tax (PAT) figures underscore the company's improved financial management and profitability. The PAT rose from a modest ₹4.73 lakhs in FY22 to ₹82.98 lakhs in FY24, indicating a substantial increase in the company's ability to generate profits.

Moreover, the company's net worth significantly increased, moving from ₹6.68 lakhs in FY22 to ₹397.09 lakhs in FY24. This growth in net worth, alongside a balanced approach to reserves and surplus, reflects a strengthening financial foundation and the company's ability to support its long-term objectives.