Excellent Wires & Packaging Ltd. is a distinguished manufacturer renowned for its comprehensive range of high-quality wire products and packaging solutions. Their diverse product portfolio includes Mild Steel Wires (Annealed, H.B., H.H.B. variants), Spring Steel Wires, Galvanized Wires (GI Wires), Round Stitching Wires, Spiral Binding Wires, Stainless Steel Wires, Brass Wires, Copper Wires, and Wire Ropes made from high carbon or stainless steel wire, with optional PVC coating for enhanced durability.

The company has launched its IPO, Excellent Wires and Packaging Limited IPO, a Fixed Price Issue amounting to ₹12.6 Crores, consisting entirely of a Fresh Issue of 14.00 lakh shares. The subscription period for the IPO is from September 11 to September 13, 2024, and the allotment is expected to be finalized on September 17, 2024. The shares are scheduled to be listed on NSE SME on or about September 19, 2024.

Pricing and Lot Size: The share price for the Excellent Wires and Packaging IPO is set at ₹90 per equity share, with a minimum lot size of 1,600 shares. Retail investors are required to invest a minimum of ₹144,000, while High-Net-Worth Individuals (HNIs) need a minimum of 2 lots (3,200 shares), amounting to ₹288,000.

Lead Manager and Registrar: Inventure Merchant Banker Services Private Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar for the Issue, and Inventure Growth & Securities Limited serves as the sole Market Marker.

GMP for Excellent Wires and Packaging IPO

The Grey Market Premium (GMP) for Excellent Wires and Packaging Limited IPO is expected to range between ₹5 to ₹10. While GMP can offer insights into potential listing gains, it is important to note that no formal trading is conducted based on this premium, making it unreliable for predicting the listing price. GMP largely depends on demand and supply dynamics in the unregulated market and is shared here for educational purposes only.

Live Subscription Status

As of 3:37 PM on September 12, 2024, the Excellent Wires and Packaging Limited IPO has been subscribed 2.64 times. For live updates on the subscription status, visit the NSE website.

Allotment Status

The IPO allotment status for Excellent Wires and Packaging will be available on September 17, 2024. Investors can check their allotment status on the registrar's website by following these steps:

Visit the IPO allotment status page.

Select Excellent Wires and Packaging Limited IPO from the dropdown menu.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

By following these steps, investors can quickly determine their allotment and make the necessary preparations.

Objectives of the IPO

The funds raised through the Excellent Wires and Packaging IPO will be utilized for the following purposes:

₹578.18 Lakhs for the Acquisition of Land and Construction of a Building.

₹200.00 Lakhs for the Acquisition of Plant & Machinery.

₹150.00 Lakhs for Funding Additional Working Capital.

₹231.82 Lakhs for General Corporate Purposes.

Company Overview

Excellent Wires & Packaging Ltd. has established itself as a leading manufacturer with a comprehensive portfolio of wire products catering to industries such as construction, infrastructure, and packaging. Their offerings include Mild Steel Wires, Galvanized Wires, Stainless Steel Wires, and Wire Ropes, known for their high tensile strength and durability. The company's dedication to quality and innovation has solidified its reputation in both domestic and international markets.

Financial Performance

Financially, Excellent Wires and Packaging has shown commendable growth. The company’s revenue increased from ₹728.85 Lakhs in FY22 to ₹1,448.46 Lakhs in FY23, with a current figure of ₹1,540.82 Lakhs in FY24. Similarly, EBITDA grew from ₹16.52 Lakhs in FY22 to ₹41.82 Lakhs in FY23, now standing at ₹146.14 Lakhs in FY24. Profit After Tax (PAT) also increased from ₹4.73 Lakhs in FY22 to ₹10.43 Lakhs in FY23, and currently at ₹82.98 Lakhs in FY24, indicating robust financial health.

For this IPO, the company’s pre-issue EPS is ₹3.32, and post-issue EPS is ₹1.85. The pre-issue P/E ratio stands at 27.10x, while the post-issue P/E ratio is 48.64x, compared to the industry P/E ratio of 54.65x. The company's ROE for FY24 is 20.90%, suggesting a strong financial position, though the IPO is priced on the higher side.

IPO Recommendation

Given the Grey Market Premium (GMP) showing potential listing gains of 5% - 10%, and the steady financial performance of the company, investors should approach this IPO with caution. While the financials appear solid, the pricing may be a bit high, and long-term investment potential is uncertain. As a result, we recommend investors avoid the Excellent Wires and Packaging Limited IPO for listing gains or long-term investment purposes.

For more information on IPOs and investment opportunities, visit Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening a Free Demat Account in Choice Broking FinX.