Excellent Wires & Packaging Ltd. stands out as a distinguished manufacturer known for its comprehensive range of high-quality wire products and packaging solutions. The company’s offerings include a diverse array of wires such as Mild Steel Wires (Annealed, H.B., H.H.B.), Spring Steel Wires, Galvanized Wires (GI Wires), Round Stitching Wires, Spiral Binding Wires, Stainless Steel Wire, Brass Wires, Copper Wires, and Wire Ropes. These products are crafted from premium-grade high carbon or stainless steel, with optional PVC coating for added durability and versatility.

IPO Details

The Excellent Wires & Packaging IPO is a Fixed Price Issue amounting to ₹12.6 Crores, consisting solely of a Fresh Issue of 14.00 lakh shares. The subscription period for this IPO opens on September 11, 2024, and closes on September 13, 2024. The allotment is anticipated to be finalized on September 17, 2024, with the shares scheduled to list on the NSE SME on September 19, 2024.

The IPO price is set at ₹90 per share, with a minimum lot size of 1,600 shares. Retail investors need to invest a minimum of ₹144,000, while High-Net-Worth Individuals (HNIs) must invest in 2 lots (3,200 shares), totaling ₹288,000.

Inventure Merchant Banker Services Private Limited is the book-running lead manager, Bigshare Services Private Limited is the registrar, and Inventure Growth & Securities Limited is the sole Market Maker.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Excellent Wires & Packaging Limited is estimated to be in the range of ₹5 to ₹10. This suggests potential listing gains of 5% to 10%. It is crucial to note that the GMP is indicative and not a definitive measure of the share's future performance, as it relies on unregulated market dynamics.

Subscription Status

As of 03:37 PM on September 12, 2024, the Excellent Wires & Packaging IPO has been subscribed 2.64 times on its second day of the subscription period. Investors can check the live subscription status at the NSE website for the latest updates.

Allotment Process

The allotment for Excellent Wires & Packaging IPO is set for September 17, 2024. Investors can verify their allotment status by visiting the Bigshare Services Private Limited website or following these steps:

Go to the IPO allotment status page.

Select Excellent Wires & Packaging Limited IPO from the dropdown list.

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

Submit the details to check your allotment status.

Objectives of the Issue

Proceeds from the Fresh Issue will be utilized as follows:

₹578.18 Lakhs for the acquisition of land and construction of building.

₹200.00 Lakhs for acquisition of plant and machinery.

₹150.00 Lakhs for funding additional working capital.

₹231.82 Lakhs for general corporate purposes.

IPO Review

Excellent Wires & Packaging Ltd. has shown steady financial performance. The company’s revenue increased from ₹728.85 Lakhs in FY22 to ₹1,540.82 Lakhs in FY24. EBITDA rose from ₹16.52 Lakhs in FY22 to ₹146.14 Lakhs in FY24, while PAT improved from ₹4.73 Lakhs in FY22 to ₹82.98 Lakhs in FY24.

For the IPO, the company is offering shares at a pre-issue EPS of ₹3.32 and a post-issue EPS of ₹1.85. The pre-issue P/E ratio is 27.10x, and the post-issue P/E ratio is 48.64x, compared to an industry average P/E ratio of 54.65x. The company's ROE for FY24 is 20.90%, indicating fair pricing.

Conclusion and Recommendation

Considering the financial metrics and the modest Grey Market Premium, Excellent Wires & Packaging IPO presents a mixed investment opportunity. While the company’s financial performance shows growth, the expected listing gains are relatively modest. Potential investors should weigh these factors carefully and consider their investment goals and risk tolerance before proceeding.

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