Excellent Wires & Packaging Ltd. is a prominent manufacturer specializing in a diverse range of wire products and packaging solutions. Their product lineup includes 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, all crafted from premium-grade high carbon or stainless steel wire, with optional PVC coating for added durability.

IPO Details

The Excellent Wires and Packaging IPO is a fixed price issue amounting to ₹12.6 crores, consisting entirely of a fresh issue of 14.00 lakh shares. The subscription period runs from September 11, 2024, to September 13, 2024, with shares priced at ₹90 each. The minimum lot size is 1,600 shares, requiring a minimum investment of ₹144,000 for retail investors and ₹288,000 for high-net-worth individuals (HNIs) bidding for 2 lots (3,200 shares).

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 for this IPO.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Excellent Wires and Packaging IPO is expected to be in the range of ₹5 to ₹10, indicating minimal listing gains. This limited premium reflects a cautious investor sentiment and suggests modest gains upon listing.

Live Subscription Status

As of 3:37 PM on September 12, 2024, the Excellent Wires and Packaging IPO was subscribed 2.64 times, demonstrating steady investor interest but not overwhelming demand.

IPO Allotment Status

The IPO allotment date for Excellent Wires and Packaging is September 17, 2024. Investors can check their allotment status on the registrar’s website by:

Navigating to the IPO allotment status page.

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

Entering their application number, PAN, or DP Client ID.

Submitting the details to view their allotment status.

Objectives of the IPO

The proceeds from the Excellent Wires and Packaging IPO will be allocated as follows:

₹578.18 lakhs for acquisition of land and construction of building.

₹200.00 lakhs for acquisition of plant & machinery.

₹150.00 lakhs for funding additional working capital.

₹231.82 lakhs for general corporate purposes.

IPO Review

Excellent Wires & Packaging Ltd. is known for its high-quality wire products and packaging solutions. Financially, the company has shown growth with revenue increasing from ₹728.85 lakhs in FY22 to ₹1,540.82 lakhs in FY24. EBITDA also grew from ₹16.52 lakhs in FY22 to ₹146.14 lakhs in FY24, and PAT increased 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, with a pre-issue P/E ratio of 27.10x and a post-issue P/E ratio of 48.64x, compared to an industry average of 54.65x. The Return on Equity (ROE) for FY24 is 20.90%, suggesting that while the IPO is fairly priced relative to the industry, it may not offer substantial gains.

Recommendation: Given the minimal Grey Market Premium and the higher P/E ratio relative to industry norms, we recommend investors to avoid the Excellent Wires and Packaging Limited IPO for potential listing gains or long-term investment.

Disclaimer: This review is for educational purposes and should not be construed as financial advice. Investors should seek professional advice before making any investment decisions.

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