The Excellent Wires and Packaging IPO is set to open on September 11, 2024, and will close on September 13, 2024. This IPO aims to raise approximately ₹12.60 crores, offering investors a unique opportunity to invest in a company with a strong presence in the packaging and wire manufacturing industry. The IPO price band has been set at ₹90 per share, making it an attractive proposition for both retail and institutional investors.
This blog post provides a detailed analysis of the Excellent Wires and Packaging IPO, covering essential aspects such as IPO dates, price band, allotment details, and financial performance. We’ll also discuss whether this IPO is a good long-term investment, review its financials, and compare it with its peers in the industry.
Excellent Wires and Packaging IPO Details
Understanding the details of the Excellent Wires and Packaging IPO is crucial for potential investors. Below is a summary of the key information:
| Detail | Information |
|---|---|
| IPO Open Date | September 11, 2024 |
| IPO Close Date | September 13, 2024 |
| Face Value | ₹10 Per Equity Share |
| IPO Price Band | ₹90 Per Share |
| Issue Size | ₹12.60 Crores |
| Fresh Issue | ₹12.60 Crores |
| IPO Listing | NSE SME |
| Retail Quota | 50% |
| QIB Quota | [To Be Announced] |
| NII Quota | 50% |
| IPO Listing Date | September 19, 2024 |
| Basis of Allotment Date | September 16, 2024 |
| Refunds Initiation Date | September 17, 2024 |
| Credit to Demat Account | September 17, 2024 |
For more information on the IPO process and to check the allotment status, you can visit IPO Allotment.
About Excellent Wires and Packaging
Excellent Wires and Packaging is a leading manufacturer specializing in a variety of wires and packaging products. The company’s product range includes Spring Steel Wire, High Carbon Wire, Galvanized Wire, and Stainless Steel Wire among others. These products are widely used across various industries, including packaging, engineering, stationery, and even the imitation jewelry sector.
The company has established a strong reputation for its high-quality products, making it a preferred choice for many industrial clients. With the funds raised through this IPO, Excellent Wires and Packaging aims to expand its operations, acquire new machinery, and enhance its working capital.
Financial Performance of Excellent Wires and Packaging
The financial health of a company is a key factor in determining the potential success of an IPO. Below is a summary of Excellent Wires and Packaging’s financial performance over the last three years:
| Year | Revenue (₹ Crores) | Expenses (₹ Crores) | Profit After Tax (₹ Crores) | Assets (₹ Crores) |
|---|---|---|---|---|
| 2022 | ₹7.29 | ₹7.22 | ₹0.05 | ₹2.43 |
| 2023 | ₹14.48 | ₹14.34 | ₹0.10 | ₹3.25 |
| 2024 | ₹15.41 | ₹28.83 | ₹0.81 | ₹7.05 |
The company has shown consistent growth in revenue, with a significant improvement in profitability in 2024. This growth trajectory makes the Excellent Wires and Packaging IPO a promising investment, especially for those looking to invest for the long term.
Valuation and Peer Comparison
Investors often look at a company’s valuation and compare it with its peers before making an investment decision. Below is a comparison of Excellent Wires and Packaging with some of its industry peers:
| Company | EPS (₹) | PE Ratio | RoNW (%) | NAV (₹) | Revenue (₹ Crores) |
|---|---|---|---|---|---|
| Bedmutha Industries | 6.28 | 36.59 | 16.34% | 37.38 | 8.68 |
| KEI Industries | 64.41 | 72.98 | 18.46% | 348.88 | 81.53 |
| Rajratan Global | 11.00 | 54.37 | 15.87% | 69.35 | 5.58 |
| Excellent Wires | 3.32 | N/A | 20.90% | 15.90 | 15.41 |
Excellent Wires and Packaging shows strong potential with a solid Return on Net Worth (RoNW) of 20.90%, which is higher than some of its competitors. However, the company’s Earnings Per Share (EPS) is lower, reflecting its smaller scale compared to larger industry players. Despite this, the company’s focus on expansion and growth positions it well for future success.
Objects of the Issue
The proceeds from the Excellent Wires and Packaging IPO will be utilized for the following purposes:
- Acquisition of Land and Construction of Building: The company plans to acquire new land and build additional facilities to increase its manufacturing capacity.
- Acquisition of Plant & Machinery: The funds will also be used to purchase advanced machinery, which will enhance production efficiency.
- Funding Additional Working Capital Requirements: To support its growing operations, the company will allocate part of the IPO proceeds to working capital.
- General Corporate Purposes: A portion of the funds will be used for general corporate purposes, including marketing, debt repayment, and other operational expenses.
Investment Insights: Is It a Good Long-Term Investment?
Investing in the Excellent Wires and Packaging IPO could be a good option for long-term investors. The company’s consistent growth in revenue and profits, combined with its strategic expansion plans, makes it a strong candidate for future growth. Additionally, the company’s focus on high-quality products and its established presence in various industries provide a solid foundation for sustained success.
However, investors should also consider the risks associated with investing in a small-cap company. While the growth potential is high, smaller companies are often more susceptible to market fluctuations and economic downturns.
How to Apply for Excellent Wires and Packaging IPO
Investors interested in applying for the Excellent Wires and Packaging IPO can do so via the ASBA process through their bank accounts or UPI through stock brokers. The IPO can also be applied for offline by filling out a physical form through your stock broker.
For a seamless application process, you can visit IPO Forms to download the necessary forms and get more information on how to apply.
IPO Allotment and Listing Details
The allotment for the Excellent Wires and Packaging IPO will be finalized on September 16, 2024. If you are allotted shares, they will be credited to your Demat account on September 17, 2024. The IPO is expected to be listed on the NSE SME platform on September 19, 2024.
To check your allotment status, visit the IPO Allotment page for the latest updates.
FAQs about Excellent Wires and Packaging IPO
1. What is the Excellent Wires and Packaging IPO?
The Excellent Wires and Packaging IPO is an initial public offering where the company aims to raise ₹12.60 crores by issuing shares at ₹90 each. The IPO is set to list on the NSE SME platform.
2. When will the Excellent Wires and Packaging IPO open and close?
The IPO will open on September 11, 2024, and close on September 13, 2024.
3. How can I apply for the Excellent Wires and Packaging IPO?
You can apply for the IPO through ASBA via your bank account or UPI through your stock broker. You can also apply offline through your stock broker by filling out a physical form.
4. What is the IPO Listing Date?
The IPO is scheduled to be listed on the NSE SME platform on September 19, 2024.
5. Is Excellent Wires and Packaging IPO a good long-term investment?
Yes, based on the company’s financial performance and growth potential, it could be a good long-term investment, especially for those looking to invest in a growing small-cap company.
6. What is the price band of the Excellent Wires and Packaging IPO?
The price band for the Excellent Wires and Packaging IPO is set at ₹90 per share.
7. What are the key objectives of the IPO?
The key objectives of the IPO are to acquire land and build facilities, purchase new machinery, fund additional working capital requirements, and meet general corporate expenses.
Conclusion
The Excellent Wires and Packaging IPO presents an exciting opportunity for investors to be part of a growing company in the wire and packaging industry. With its strong financials, strategic expansion plans, and a solid reputation for quality, the company is well-positioned for future growth. However, as with any investment, potential investors should carefully consider the risks and consult with a financial advisor before making a decision.
For more insights into upcoming IPOs and investment opportunities, visit IPO Gray Market.
Disclaimer: Investing in IPOs involves risks, and it is essential to conduct thorough research and consult with a financial advisor before making any investment decisions. The information provided in this article is for educational purposes only and should not be considered as financial advice.
