Excellent Wires and Packaging shares list at 5% discount on NSE SME; tanks further to hit lower circuit

Excellent Wires and Packaging, a wire products manufacturer, made a weak market debut on Thursday, September 18. The company's shares were listed at a 5% discount over the issue price on the NSE SME platform.

Shares of the company started trading at ₹85 apiece on the NSE SME platform against the issue price of ₹90 per share, reflecting losses of 5%. The stock dropped a further 5% to hit the lower circuit at ₹80.75 per share due to investors' selling.

Around 1.68 lakh shares of the company changed hands on the bourse, and its market valuation stood at ₹39.89 crore.

The investors who were allotted shares in the IPO faced losses of ₹14,800 per lot due to a decline in share prices. The company had fixed the lot size at 1,600 shares, costing ₹1,44,000 for IPO investors.

Excellent Wires and Packaging IPO details

Excellent Wires and Packaging raised ₹12.6 crore through its public offer on NSE SME platform last week. The IPO was open for subscription from September 11 to 13, 2024. The initial public offering was a fixed price IPO and comprised a fresh issue of 14 lakh shares. The company had fixed the price at ₹90 per share for the public offer.

Excellent Wires and Packaging public offer was subscribed over 20 times. Applications for over 2.70 crore shares worth ₹243.50 crore were received from investors against 13.28 lakh shares on offer.

Among investor categories, retail individual investors placed bids for more than 2.12 crore shares against 6.64 lakh shares on offer. The RII portion was booked 32 times.

Non-retail investors like non-institutional investors and qualified institutional investors placed bids for 58.11 lakh shares against 6.64 lakh shares set aside for them. The non-retail quota was booked 8.75 times.

Excellent Wires and Packaging finalised the share allotment status on September 16.

Excellent Wires and Packaging Ltd. has proposed using IPO proceeds to finance the acquisition of land and the construction of a building, the acquisition of plant and machinery, and additional working capital requirements.

The company reported revenue from operations of ₹1,540.82 lakh in FY2023-24 against ₹1,448.46 lakh in FY2022-23. Profit After Tax was ₹82.98 lakh in FY24 against ₹10.43 lakh in FY23.

The company manufactures and supplies wires and wire ropes. It sells products such as Galvanised Wire (GI Wire), Spring Steel Wire, and High Carbon Wire under the ‘Excellent’ brand. Wires are used in multiple applications. Its products are classified into three categories: brass wires and products, steel wires and products, and other products such as Packaging materials.