The Excellent Wires and Packaging IPO is a fixed price issue of ₹12.60 crores, consisting entirely of a fresh issue of 14 lakh shares.
The IPO opens for subscription on September 11, 2024, and closes on September 13, 2024. The allotment is expected to be finalized on September 16, 2024, with a tentative listing date on the NSE SME set for September 19, 2024.
Priced at ₹90 per share, the minimum application size is 1,600 shares, requiring a retail investment of ₹144,000. For HNIs, the minimum investment is 2 lots (3,200 shares) totaling ₹288,000.
Inventure Merchant Banker Services Pvt Ltd is the book-running lead manager, Bigshare Services Pvt Ltd is the registrar, and Inventure Growth & Securities serves as the market maker.
Below are the details of Excellent Wires & Packaging Limited IPO Details, Timeline, Lot Size, Anchor Investor, and Promoter Holding.
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Excellent Wires & Packaging IPO Details
| IPO Date | September 11, 2024 to September 13, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price | ₹90 per share |
| Lot Size | 1600 Shares |
| Total Issue Size | 1,400,000 shares (aggregating up to ₹12.60 Cr) |
| Fresh Issue | 1,400,000 shares (aggregating up to ₹12.60 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 3,070,000 |
| Share holding post issue | 4,470,000 |
| Market Maker portion | 72,000 shares |
Excellent Wires & Packaging IPO Timeline
| IPO Open Date | Wednesday, September 11, 2024 |
| IPO Close Date | Friday, September 13, 2024 |
| Basis of Allotment | Monday, September 16, 2024 |
| Initiation of Refunds | Tuesday, September 17, 2024 |
| Credit of Shares to Demat | Tuesday, September 17, 2024 |
| Listing Date | Thursday, September 19, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 13, 2024 |
Excellent Wires & Packaging IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1600 | ₹144,000 |
| Retail (Max) | 1 | 1600 | ₹144,000 |
| HNI (Min) | 2 | 3,200 | ₹288,000 |
Excellent Wires & Packaging IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| Retail Shares Offered | 50% of the Net Issue |
| Other Shares Offered | 50% of the Net Issue |
Excellent Wires & Packaging IPO Promoter Holdings
The promoters of the company are Bhavya Vasant Shah, Rachit Paresh Masalia and Darshil Hasmukh Shah.
| Share Holding Pre Issue | 91.90% |
| Share Holding Post Issue | 63.12% |
Excellent Wires & Packaging IPO Financial Information
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||
| Assets | 705.08 | 324.69 | 242.63 | |||||||||||||||||||||||||||
| Revenue | 1,540.82 | 1,448.46 | 728.85 | |||||||||||||||||||||||||||
| Profit After Tax | 82.98 | 10.43 | 4.73 | |||||||||||||||||||||||||||
| Net Worth | 397.09 | 17.11 | 6.68 | |||||||||||||||||||||||||||
| Reserves and Surplus | 362.09 | 15.11 | 4.68 | |||||||||||||||||||||||||||
| Amount in ₹ Lakhs | ||||||||||||||||||||||||||||||
Excellent Wires & Packaging IPO Review
Excellent Wires & Packaging Ltd. (EWPL) began in 2012 as Perfect Wire Industries, manufacturing a wide range of wires under the brand name “Excellent.” By 2021, the business was incorporated as a company, absorbing the assets and operations of the previous partnership. The company offers various wires for multiple industries, including packaging and engineering, and sells packaging products like PP strapping rolls and tapes.
Now, the company is raising ₹12.60 crores through its maiden IPO, offering 14 lakh shares at ₹90 each. The funds will be used for acquiring land, machinery, working capital, and general corporate purposes. Post-IPO, EWPL’s paid-up capital will increase to ₹4.47 crores, giving it a market cap of around ₹40.23 crores.
On the financial front, the company’s revenue has grown significantly, with FY24 showing a sharp rise in profits. However, the sustainability of this performance is questionable, especially given the company’s historically low margins. The IPO is priced at a P/E of 48.39, which, given the competitive and fragmented nature of the wire industry, appears steep.
While the merchant banker has a mixed track record, the valuation and financials raise concerns. The small equity post-IPO also suggests a longer migration period, making this a potentially risky investment. Skipping this pricey offering might be a prudent move for cautious investors.