From Rs 50 To Over Rs 100; This IPO Gives 109% Returns In 8 Days Since Listing, Hits New 1-Year High; Buy?

Plaza Wires, earlier known as RK Kabel, has made some impressive and extraordinary surges in prices despite the broader sentiment of markets being bearish. While Sensex and Nifty 50 were in a bittersweet performance for the past two weeks, the share price of Plaza Wires was at a sky-high so much so that it locked at a new 52-week high on October 23rd.

That being said, Plaza Wires has given over 100% returns to its investors in less than 10 trading sessions, becoming a multi-bagger since listing on October 12.

On BSE, Plaza Wires share price stood at Rs 112.86 apiece, up by 5%. This is both a 5% upper circuit and a new 52-weel high of the company. The company's market cap is nearly Rs 494 crore.

Plaza Wires was listed on October 12. On the listing day, as per BSE data, its closing price was Rs 80.23 apiece which was an upside of Rs 26.23 or over 48.5% from its IPO issue price.

The company's IPO issue price was Rs 54 apiece.

But in just 8 trading sessions since listing, Plaza Wires has skyrocketed 109% or Rs 58.86 since listing against its IPO issue price.

Starting from a fledging organization 35 years ago, R K Cable, now known as PLAZA CABLES has come a long way in establishing itself as a major player in the cable & wires industry. Since its inception, Plaza has been setting standards in quality & safety with all its products.

Should you buy or book profits in Plaza Wires?

Prashanth Tapse, Sr. VP Research Analyst at Mehta Equities said, "Despite market volatility and fierce competition in a sector crowded with industry giants, Plaza Wires' IPO proved a success, doubling investors' returns. The IPO witnessed strong interest, with record-breaking bids from retail investors and a strong exchange debut."

Tapse added, "Post-listing, Plaza Wires' shares consistently rose, driven by reasonable valuations and a performance gap between large and small-cap companies in the sector. We maintain our belief that the wires and cable segment will benefit from the government's infrastructure-focused initiatives and expansion plans."

Accordingly, Tapse added, "With a preference for mid and small-cap stocks due to their higher growth potential, we recommend booking 50% of your holdings and retaining the rest for medium to long-term gains, while remaining optimistic about the sector's long-term outlook."

Plaza Wires launched its IPO between September 29th to October 5th, which was an entirely fresh issue of 1.32 crore equity shares. The company managed to garner over Rs 71 crore from investors during the IPO bidding, which subscribed 160.97 times on the last day of the issue. The fixed price for the IPO was Rs 51 apiece to Rs 54 apiece.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.