Excellent Wires and Packaging Limited
Excellent Wires and Packaging Limited(EXCELLENT)
Total Shares
14,00,000
Issue Size
₹12.60 Cr
Price Band
₹90 – ₹90
Lot Size
1600 shares
Min. Investment
₹1,44,000
Max. Investment
₹1,44,000
Open Date
11 Sep, 2024
Close Date
13 Sep, 2024
Allotment
16 Sep, 2024
Listing
19 Sep, 2024
Max. Investment
₹1,44,000
Announced
11 Sep, 2024
Opening Date
11 Sep, 2024
Closing Date
13 Sep, 2024
Basis of Allotment
16 Sep, 2024
Initiation of Refunds
17 Sep, 2024
Credit of Shares
17 Sep, 2024
Listing Date
19 Sep, 2024
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About Excellent Wires and Packaging Limited IPO
Incorporated in March 2021, Excellent Wires and Packaging Limited manufactures a wide range of wires and wire ropes under the brand name Excellent, including various types such as Spring Steel Wire, High Carbon Wire, Galvanised Wire (GI Wire), and others for multiple applications.
The company's products can be categorised into the following
- Brass Wires & Products
- Steel Wires & Products
- Other Products viz. Packaging Products
The comp
Excellent Wires and Packaging Limited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 45.6% increase in shares
Excellent Wires and Packaging Limited IPO Financials Health
Excellent Wires and Packaging Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1600 | ₹1,44,000 |
| Retail Maximum | 1 | 1600 | ₹1,44,000 |
| HNI Minimum | 2 | 3200 | ₹2,88,000 |
(All values in CR)
Excellent Wires and Packaging Limited IPO Valuation
| Metric | Value |
|---|---|
| EPS Post IPO | 1.86 |
| EPS Pre IPO | 2.7 |
| P/BV | 5.66 |
| P/E Post IPO | 48.48 |
| P/E Pre IPO | 33.3 |
| PAT Margin (%) | 148.39 |
| RoNW | 20.90% |
(All values in CR)
Strength & Risk of Excellent Wires and Packaging Limited IPO
1. Experienced Promoter and management team with strong industry expertise.
2. Established Reputation and Strong customer relationships.
3. Diversified product portfolio.
4. Continuous improvement in Operations.
1. The company propose to utilize a portion of its Net Proceeds towards acquisition of land and construction of building and acquisition of plant and machineries for its proposed manufacturing facility at Wada. Any delay or failures in successfully setting up this facility may affect its business growth, thereby affecting its future business plans, business operations and financial conditions.
2. If the company is unable to implement its growth strategy successfully including in relation to selecting locations for its new manufacturing facility, the company's results of operations and financial condition may be adversely affected.
3. The company has not entered into long-term contracts with its customers and typically operates on the basis of purchase orders from its customers, any loss of customers could adversely impact the company's revenues and profitability.
4. Raw Materials costs constitute a significant percentage of the Company's total expenses. The costs of the raw materials that the company use in its manufacturing process are subject to volatility. Increases or fluctuations in raw material prices, may have a material adverse effect on its business, financial condition, results of operations and cash flows.
5. Improper storage, processing and handling of its raw materials, in process products and finished products could damage the company inventories and, as a result, have an adverse effect on its business, results of operations and cash flows.
6. Its customers are B2B businesses and are subject to high working capital requirements. The company's inability to maintain an optimal level of working capital required for its business may impact the company's operations adversely.
7. Its Promoters and Directors, Bhavya Vasant Shah, Rachit Paresh Masalia and Darshil Hasmukh Shah plays key role in its functioning and the company heavily depends on their knowledge and experience in operating its business and therefore, it is critical for the company's business that its Promoters remain associated with it. The company's success also depends on its key managerial personnel and its ability to attract and retain them. Any loss of the company key person could adversely affect its business, operations and financial condition.
8. Substantial portion of its purchases raw materials has been dependent upon limited number of vendors.
9. The implementation of the project for which proposed issue is planned is at a very preliminary stage. Any delay in implementation of the same may increase the capital cost and also affect returns from the project.
10. Information relating to its production capacities and the historical capacity utilization of its production facilities included in this Draft Prospectus is based on certain assumptions and future production and capacity utilization may vary.
Excellent Wires and Packaging Limited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| HNI | 8.86 | 6,64,000 | 58,83,200 | 52.95 |
| Market Maker | 1.00 | 72,000 | 72,000 | 0.65 |
| Retail | 32.00 | 6,64,000 | 2,12,44,800 | 191.2 |
| Total | 20.43 | 13,28,000 | 2,71,28,000 | 244.15 |
Excellent Wires and Packaging Limited IPO GMP
Last updated 09 Sep, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 09 Sep, 2024 | 90 | ₹0 | -- | ₹90 (0.00%) | - | 09 Sep, 2024 |
| 10 Sep, 2024 | 90 | ₹0 | -- | ₹90 (0.00%) | - | 10 Sep, 2024 |
| 11 Sep, 2024 | 90 | ₹0 | -- | ₹90 (0.00%) | - | 11 Sep, 2024 |
| 12 Sep, 2024 | 90 | ₹0 | -- | ₹90 (0.00%) | - | 12 Sep, 2024 |
| 13 Sep, 2024 | 90 | ₹0 | -- | ₹90 (0.00%) | - | 13 Sep, 2024 |
| 14 Sep, 2024 | 90 | ₹0 | -- | ₹90 (0.00%) | - | 14 Sep, 2024 |
| 15 Sep, 2024 | 90 | ₹0 | -- | ₹90 (0.00%) | - | 15 Sep, 2024 |
| 16 Sep, 2024 | 90 | ₹0 | -- | ₹90 (0.00%) | - | 16 Sep, 2024 |
| 17 Sep, 2024 | 90 | ₹0 | -- | ₹90 (0.00%) | - | 17 Sep, 2024 |
| 18 Sep, 2024 | 90 | ₹0 | -- | ₹90 (0.00%) | - | 18 Sep, 2024 |
| 19 Sep, 2024 | 90 | ₹0 | -- | ₹90 (0.00%) | - | 19 Sep, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
How to Apply for Excellent Wires and Packaging Limited IPO
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Excellent Wires and Packaging Limited IPO
Excellent Wires and Packaging Limited is a company focused on the manufacturing of various types of wires, including steel, brass, and other specialty wires, as well as packaging products. The company is launching its Initial Public Offering (IPO) to raise funds for expansion and other strategic purposes.
Analyzing the Excellent Wires and Packaging Limited IPO
The IPO of Excellent Wires and Packaging Limited offers potential investors an opportunity to buy into a growing company in the wire and packaging industry. The company is looking to capitalize on the increasing demand in these sectors by expanding its operations.
Company Overview
Excellent Wires and Packaging Limited started as a partnership firm and transitioned into a corporate entity in 2021. The company manufactures a wide range of wires, including brass, steel, and specialty wires, and also sells packaging products under the brand name "Excellent."
- Industry: Steel and packaging industries.
- Product Range: Brass wires, steel wires, specialty wires, and packaging products.
Key Details of the IPO
- IPO Size: 14,00,000 Equity Shares at ?90.00 each, aggregating to ?1,260.00 Lakhs.
- Use of Proceeds: The funds raised will be used for acquiring land, constructing a building, purchasing plant and machinery, funding working capital, and general corporate purposes.
- Issue Price: ?90 per equity share, which is 9 times the face value of ?10.
Pros of Investing in Excellent Wires and Packaging Limited IPO
- Diverse Product Portfolio: The company offers a variety of wires and packaging products, reducing dependency on a single product line.
- Growth Potential: The Indian wire and packaging industries are expected to grow significantly, providing ample opportunities for expansion.
- ISO 9001:2015 Certification: The company has been awarded this certification, demonstrating a commitment to quality management and continuous improvement.
- Strategic Expansion Plans: The IPO proceeds will be used to expand operations, which could lead to higher revenue and profitability.
Cons of Investing in Excellent Wires and Packaging Limited IPO
- Market Competition: The wire and packaging industries are highly competitive, with numerous players vying for market share.
- Operational Challenges: Managing two separate manufacturing units posed challenges, leading to the closure of one unit. Such operational risks could impact profitability.
- Economic Sensitivity: The company’s performance is closely tied to the health of the steel and packaging sectors, which are sensitive to economic fluctuations.
- Recent Corporate Transition: The company’s transition from a partnership to a corporate entity is relatively recent, which may pose risks related to organizational restructuring.
Financial Performance and Market Position
The company has shown steady revenue growth over the past three fiscal years, with an increase in EBITDA and profit margins, indicating improved operational efficiency. However, investors should note the company's net debt and evaluate its ability to manage financial obligations.
- Revenue (Fiscal 2024): ?1,540.82 Lakhs
- EBITDA Margin (Fiscal 2024): 9.48%
- PAT Margin (Fiscal 2024): 5.39%
Conclusion: Should You Invest in the Excellent Wires and Packaging Limited IPO?
Investing in the Excellent Wires and Packaging Limited IPO could be a good opportunity for those looking to tap into the growing wire and packaging markets. The company’s diverse product range and strategic expansion plans are promising. However, potential investors should consider the risks associated with market competition and economic sensitivity. It's crucial to assess whether this investment aligns with your risk tolerance and long-term financial goals.
FAQs About Excellent Wires And Packaging Limited Ipo
Excellent Wires and Packaging Limited IPO will open on 11 Sep, 2024 and close on 13 Sep, 2024. Investors must apply within this period to participate.
The Excellent Wires and Packaging Limited IPO price band is set between ₹90.00 and ₹90.00 per share. The minimum lot size is 1600, requiring an investment of at least ₹144000.00.
The Excellent Wires and Packaging Limited IPO shares are expected to be listed on 18 Sep, 2024, subject to regulatory approvals and final allotment.
You can track your Excellent Wires and Packaging Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Excellent Wires and Packaging Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.