Secondary Market Update:
- Markets corrected on account of growing fears of global inflation and an economic downturn, concerns about the lackluster corporate earnings of Indian companies and rising geopolitical tensions in the Middle East. Nifty 50 lost 2.84% and closed at 19,080 while BSE SENSEX lost 2.97% and closed at 63,875 respectively.
- Foreign portfolio investors (FPIs) sold Indian equities worth Rs. 245.48 billion in the month of October, highest in last nine months.
- FIIs continued to withdraw funds as the US Fed Chair emphasized the imperative for continued monetary tightening policy and keeping interest rates high.
- Information Technology (IT) stocks saw outflows worth 32.62 billion rupees, amid weak results, elevated U.S. Treasury yields and rate concerns in U.S.
Primary Market Update:
There were 06 main board IPO in October, 2023 of IRM Energy Limited, Plaza Wires Limited, Valiant Laboratories Limited, Updater Services Limited, JSW Infrastructure Limited, and Manoj Vaibhav Gems ‘N’ Jewelers Limited against 11 IPOs in September, 2023. There were 04 SME IPOs in October, 2023 as against 03 SME IPOs in September, 2023.
Plaza Wires Limited:
|
About the Company |
Incorporated in 2006, Plaza Wires is engaged in the business of manufacturing and selling wires, and selling and marketing LT aluminum cables and fast-moving electrical goods (FMEG) under its flagship brand ‘Plaza Cables’ and various other home brands. |
|
Funds Utilization |
The company plans to use the net proceeds from the offering to fund the capital expenses for a new manufacturing facility. Additionally, the funds will be allocated to meet the company’s working capital requirements and for general corporate purposes. |
|
IPO Performance |
· Plaza Wires raised Rs 71.28 Crore through the IPO. The public offer consisted of only a fresh issue of 1.3 Crore shares and there was no offer-for-sale component. · Ahead of the IPO, the company raised Rs 20 Crore from two anchor investors. Chanakya Opportunities Fund-I and Astrone Capital UCC-Arven, who bought 18.52 lakh equity shares each in the company at Rs 54 per share. · The company raised a little more than Rs 71 Crore via primary markets by selling its shares in the range of Rs 51-54 apiece. The IPO was successful and over-subscribed by 160 times. |
Funds Mobilization by Corporates (Rs. In Crore)
|
Particulars |
Aug-23 |
Sept- 23 |
|
I. Equity Issues |
15,697 |
14,657 |
|
a. IPOs (i+ii) |
5,124 |
9,284 |
|
i. Main Board |
4,646 |
8,758 |
|
ii. SME Platform |
478 |
526 |
|
b. FPOs |
0 |
0 |
|
c. Equity Rights Issues |
1,342 |
280 |
|
d. QIPs/IPPs |
7,400 |
3,102 |
|
e. Preferential Allotments |
1,831 |
1,991 |
|
II. Debt Issues |
49,329 |
52,394 |
|
a. Debt Public Issues |
1,948 |
2,318 |
|
b. Private Placement of Debt |
47,381 |
50,076 |
|
Total Funds Mobilized (I+II) |
65,026 |
67,051 |
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.
This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction.
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