Plaza Wires IPO Closing Subscribed 160.98 times

Plaza Wires Ltd has a face value of ₹10 per share while the price band for the book building IPO has been set in the range of ₹51 to ₹54 per share. The final price will be discovered within this band through the process of book building. The IPO of Plaza Wires IPO will be entirely a fresh issue of shares with no offer for sale (OFS) component. The fresh issue portion comprises the issue of 1,32,00,158 shares (1.32 crore shares approximately), which at the upper price band of ₹54 per share will translate into fresh issue size of ₹71.28 crore. Since there is no offer for sale (OFS) component, the overall IPO size will also comprise of the issue of 1,32,00,158 shares (1.32 crore shares approximately), which at the upper price band of ₹54 per share will translate into a total IPO issue size of ₹71.28 crore.

While the QIB portion picked up traction on the third and fourth days of the IPO, the overall journey was quite slow in the first 2 days of the IPO for the QIBs. In fact, the QIB portion got fully subscribed only on the third and penultimate day of the IPO while the HNI / NII portion and the retail portion got fully subscribed on the first day of the IPO itself. As a result, the overall IPO also got subscribed on the first day of the IPO itself. However, it must be said that most of the traction in the retail, HNI / NII and the QIB categories only came on the last 2 days of the IPO. The IPO was kept open for a period of 4 days. The table below captures the day-wise progress in IPO subscription.

As can be seen from the above table, the overall IPO got 160.97 times subscribed at the close of the fourth and final day of the IPO on 05th October 2023. The IPO had been kept open for 4 days in all. The QIB portion got subscribed 42.84  times, the retail portion 374.81 times and the HNI / NII portion got subscribed 388.10 times at the close.

Rapid update on the overall IPO response

The IPO saw fairly steady flows on Day-1 and Day-2 of the IPO but picked up momentum substantially on the third and the fourth day. While the QIBs saw most of the traction on the last day, the HNI / NII and the retail portion saw bulk of the traction on the last 2 days of the IPO. In fact, the company got fully subscribed only on the first day of the IPO, with only the QIB portion getting fully subscribed on the third day of the IPO. As per the combined bid details put out by the BSE at the close of Day-3, Plaza Wires Ltd IPO was subscribed 160.97X overall, with best demand coming from the HNI / NII segment, followed by the retail segment and the QIB segment in that order. In fact, the institutional segment and the HNI / NII segments saw some very good traction on the last day. The HNI portion did do well and a lot of the surge of funding applications and corporate applications did come in on the last day of the IPO. Retail portion was strong all through, although this portion also saw most of the action on the last 2 days of the IPO. Here is the allocation quota to each category of investors in the IPO of Plaza Wires Ltd.

Having understood the allocation of shares across various categories, Let us quickly look at how the subscription data played out for the IPO at an overall level and at a more granular level.

As of close of 05th October 2023, out of the 94.96 lakh shares on offer in the IPO, Plaza Wires Ltd saw bids for 15,286.74 lakh shares. This implies an overall subscription of 160.98X overall. The granular break-up of subscriptions was in favour of the HNI / NII investors followed by the retail investors and the QIB investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that was the case in this issue also in the case of QIB bids. Both the QIB and the NII bids picked momentum on the last day and added to its heft of the previous days. Here are the details of the category-wise subscription.

Subscription status of QIB Portion

On 27th September 2023, Plaza Wires Ltd completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated through the process of book building. A total of 37,04,044 shares were allotted to two anchor investors. The allocation was done at the upper IPO price band of ₹54 per share (including premium of ₹44 per share) which resulted in an overall allocation of ₹20.00 crore. The anchors absorbed 28.06% of the total issue size of ₹71.28 crore.

The QIB portion (net of anchor allocation as explained above) had a quota of 61.96 lakh shares of which it has got bids for 2,654.62 lakh shares at the close of Day-4, implying a subscription ratio of 42.84X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and while the heavy demand for the anchor placement had given an indication of the institutional appetite for the Plaza Wires Ltd IPO subscription overall, the actual demand did turn to be quite robust for the IPO.

Subscription status of HNI / NII Portion

The HNI portion got subscribed 388.10X (getting applications for 7,684.56 lakh shares against the quota of 19.80 lakh shares). That is a relatively strong response at the close of Day-4 largely because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO, and that was visible as the overall HNI / NII portion added to its heft on the last day of the IPO. Apart from the QIB portion, even HNIs saw good traction on the last day.

Now the NII/HNI portion is reported in two parts viz. bids below ₹10 lakhs (S-HNI) and bids above ₹10 lakhs (B-HNI). The bids above the ₹10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above ₹10 lakh bid category got subscribed 360.92X while the below ₹10 lakh bid category (S-HNIs) got subscribed 442.48X. This is just for information and is already part of the overall HNI bids explained in the previous para.

Subscription status of Retail Individuals

The retail portion was subscribed just 374.81X at the close of Day-4, showing relatively strong appetite. It must be noted that retail allocation is only 10% in this IPO. For retail investors; out of the 13.20 lakh shares on offer, valid bids were received for 4,947.56 lakh shares, which included bids for 4,263.74 lakh shares at the cut-off price. The IPO is priced in the band of (₹51 to ₹54 per share) and has closed for subscription as of the close of Thursday, 05th October 2023.