DCG Cables & Wires IPO- Subscription Status
The DCG Cables & Wires Ltd initial public offering (IPO) is already accepting subscriptions. It is open until Wednesday, April 10. The price range for the first public offering (IPO) is ₹100 per share. 1,200 shares comprise the IPO lot size for DCG Cables & Wires Ltd.
DCG Cables & Wires Limited is a notable entity in the manufacturing sector, specializing in the production of copper cables and wires. Incorporated on September 29, 2017, as an unlisted public company, it has established its presence in Ahmedabad, Gujarat, which serves as its city of origin.
The company was founded with a vision to cater to the transformer manufacturing industry, providing a range of copper-based products. The promoter family, comprising Mr. Harshadbhai Patel, Mrs. Ushaben Patel, and Mr. Devang Patel, brings over two decades of experience in the industry to the table. Their expertise and long-standing relationships within the sector have been instrumental in the company's growth and success.
DCG Cables & Wires embarked on its journey with a clear focus on quality and customer satisfaction. The promoter's prior experience since 2008 has been a cornerstone for the company, enabling it to build and maintain robust relationships with its clientele. The company's product portfolio includes copper strips, paper-covered copper strips, and wires, which find their primary application in transformers.
The company's authorized share capital stands at INR 20.00 crores, with a paid-up capital of INR 13.15 crores. For the financial year ending on March 31, 2022, DCG Cables & Wires reported a surge in revenue from ₹5,452.47 lakhs to ₹7,633.22 lakhs, indicating a significant growth trajectory. This increase in revenue was accompanied by a notable rise in equity, profitability, and earnings per share (EPS), reflecting the company's improving financial health and market position. The company's financial performance has shown resilience and growth over the years. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased from 16 lakhs in FY21 to 3 crores in FY23, demonstrating an enhanced operational efficiency and profitability before accounting for non-operational expenses. The Profit After Tax (PAT) also saw an upward trend, rising from 10 lakhs in FY21 to 1.7 crores in FY23. These figures underscore the company's ability to generate profits and retain earnings after meeting all its tax obligations.
IPO Subscription Status
DCG Cables & Wires Ltd IPO subscription status is 7.02 times, on day 3, so far as per NSE Data.
The retail portion was subscribed 10.40 times, and the NII portion was booked 4.32 times.
The company has received bids for 3,50,71,200 shares against 49,99,200 shares on offer, at 12:45 IST, according to data on the NSE website.
DCG Cables & Wires Ltd IPO subscription status is 1.65 times, on day 1, and the issue was booked 4.18 times on day 2.
DCG Cables & Wires IPO Details
Issue Date: The issue date in an IPO, also known as the initial offering date, is when a company's stock is first made available for public purchase. This date is a significant milestone in the process of an initial public offering, marking the transition of a company from private to public status. (Issue Date: April 8, 2024 to April 10, 2024).
Listing Date: The listing date in an IPO refers to the specific day when a company's shares are first made available for trading on a stock exchange following an Initial Public Offering (IPO). This is a significant event in the IPO process because it marks the transition of a company from private to public, allowing the general public to buy and sell the company's shares on the open market. The listing date is set after the IPO has closed, the shares have been allotted, and the company has met all regulatory requirements. (Listing Date: Tuesday, April 16, 2024).
Face Value of Shares: The face value of shares in an IPO, also known as the nominal or par value, is a predetermined fixed price set by the company and mentioned in its memorandum of association. It represents the initial capital contributed by the founders and is used for accounting and regulatory purposes. During an IPO, shares are typically offered at a price higher than the face value, which includes a premium based on market demand and the company's performance indicators. (IPO Face Value: ₹10 per share).
Price Band: A price band in the context of an Initial Public Offering (IPO) is a predefined range within which the shares are offered to investors. It consists of a lower and an upper price limit, allowing investors to place their bids within this spectrum. This mechanism is part of the book-building process, where potential investors submit bids for the number of shares they are willing to buy and the price they are willing to pay within the set price band. (IPO Price: ₹100 per share).
Lot Size: In an Initial Public Offering (IPO), the lot size refers to the minimum number of shares an investor can apply for. It is a pre-determined set of shares that investors must bid for, and applications must be in multiples of this lot size. The lot size ensures a standardized bidding process and helps in the fair allocation of shares among investors. (Lot Size: 1200 Shares).
Total Issue Size: The total issue size represents the total number of shares the company is offering to raise capital through the IPO. This number is determined by the company and its advisors, considering factors like their funding needs and the expected investor demand. The total issue size is then divided by the lot size to determine the total number of lots available for purchase by investors. (Total Issue Size: 4,999,200 shares (aggregating up to ₹49.99 Cr).
Fresh Issue: A fresh issue of shares in an IPO refers to the creation and sale of new shares by a company to the public for the first time to raise capital. Unlike an Offer for Sale, where existing shareholders sell their shares, a fresh issue results in new funds going directly to the company, which can be used for various purposes such as expansion, debt repayment, or investment in new projects. This process dilutes the existing shareholding but does not provide an exit route for current investors. (Fresh Issue: 4,999,200 shares (aggregating up to ₹49.99 Cr)).
Issue Type: The type of an IPO can vary depending on the market and regulatory conditions. Some of the common types of IPOs are, Fixed priced IPO, Auction IPO, Book Building IPO, and Hybrid IPO. (Issue Type: Fixed Price Issue IPO).
Listing At: The listing of shares in an IPO refers to the process where a company's shares are introduced to the public stock market, allowing investors to buy and sell the shares through a stock exchange. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: NSE SME).
Retail Shares Offered: This refers to the portion of the total shares being made available specifically for individual investors, distinct from institutional investors like banks or hedge funds. Regulatory bodies often mandate a minimum percentage of shares be reserved for retail investors, aiming to promote broader public participation in the capital markets. (Retail Shares Offered: 2,373,600 (47.48%)).
Market Maker Shares Offered: Market Maker Shares in an IPO refer to the shares that a market maker commits to buy and sell to ensure liquidity for the stock once it starts trading on the exchange. Market makers are typically brokerage firms that agree to hold a certain number of shares of the new issue to facilitate trading and provide stability to the stock price. They play a crucial role in the SME (Small and Medium Enterprises) segment, where they help in price discovery and improve the liquidity of stocks by providing two-way quotes. (Market Maker Shares Offered: 252,000 (5.04%)).
Other Shares Offered: In an Initial Public Offering (IPO), a private company offers various types of shares to the public to raise capital. The two primary types of offerings in an IPO are Fixed Price Offering and Book Building Offering. In a Fixed Price Offering, the company sets a specific price for the shares, and investors know the exact price before they buy. On the other hand, a Book Building Offering involves a price range, and investors bid within this range. The final price is determined after considering all bids. Additionally, companies may allocate shares to different categories of investors, such as Retail Individual Investors (RIIs), Qualified Institutional Investors (QIIs), Non-Institutional Investors (NIIs), or High Networth Individuals (HNIs), and sometimes even employees as part of an Employee Stock Ownership Plan (ESOP). Each type of share offering and investor category has its own set of rules and allocation percentages during an IPO. (Other Shares Offered: 2,373,600 (47.48%)).
Conclusion
In conclusion, the IPO of DCG Cables and Wires represents a significant milestone for the company, reflecting its growth trajectory and future potential. With a robust financial performance characterized by substantial revenue growth and profitability, the company has demonstrated its ability to capitalize on the market's demand for quality copper cables and wires. The positive response from the market, as indicated by the issue's subscription rate, suggests investor confidence in DCG's business model and leadership. As DCG Cables and Wires steps into the public market, it carries the promise of innovation and expansion, backed by a solid foundation of financial health and industry expertise. Prospective investors and market watchers alike will do well to keep an eye on this company as it embarks on its journey as a publicly-listed entity. The IPO not only offers an opportunity for the company to enhance its visibility and access to capital but also allows investors to be a part of DCG's continuing success story.
Disclaimer: This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing securities, that suit your needs. The performance and returns of any equity stock can neither be predicted nor guaranteed.