D P Wires Limited is a company engaged in manufacturing and marketing of steel wires, plastic films, plastic pipes. The company is a Ratlam, Madhya Pradesh based company which was incorporated in 1998. D R Wires Ltd is coming up with IPO. Our D P Wires IPO review will delve into the draft prospectus and present the details of this isssue for the interested investors.
About the issue – The D P Wires IPO review finds the following details of the IPO from the draft prospectus.
- Issue opens on – 21 September 2017
- Issue closes on – 26 September 2017
- Issue type – Fixed price issue IPO
- Issue price – Rs 75 per equity share
- Face value – Rs 10 per equity share
- Lot size – A minimum quantity of 1600 equity shares and in multiples thereof
- Issue size – Fresh issue of 3,584,000 nos. of equity shares aggregating up to Rs 26.88 crores
- Listing Exchange – NSE SME Exchange
- Issue objectives – The net proceeds from this issue will be used to – a) meet the issue expenses, b) to fulfill general corporate requirements and c) to meet the working capital requirements.
About the company – D P wires earns its revenue from multiple business ventures. The manufacturing unit for steel and plastic products of the company is located at Ratlam, MP. The steel wires manufactured by the company are used in infrastructure sector like Oil & gas, construction, bridges, railways, highways and electricity distribution. Plastic films and pipes are used in landfills, lining of canals, ponds, tanks, water reservoirs and in the mining industry, construction industry as well.
D P Wires Ltd is also engaged in power generation business. It has two wind-powered electricity generation unit of 0.8 MW each located at Okhla-Madi and Jodhpur, in Jamnagar district.
The restated 5 years financial statement shows the company has been making a consistent profit for the past 5 years. The profit growth is also riding a steady upward curve. If the latest earning is attributed to the fully diluted post IPO, then the asking price of the issue is at P/E 20 with respect to industry average P/E of 40. The issue is priced at P/BV 2.93.
Conclusion – D P Wires IPO review finds that the IPO is suitable for investment for mid to long term investors. Though the IPO might give good returns for short term investors also, the overall market condition may influence the ROI.
Disclaimer – Views that has been expressed in the IPO review is just an educated guess we made on the information available from the open source and only shared for educational purpose. It should not be taken as any investment recommendation or advice by any means. Investors or traders should invest any money at their own capability and risk.
Partha, an engineer by education, is theoratically actively following the stock and commodity markets since 1990. He is an active trader since 2003. He has received formal education in future and options and quantum analysis. He is presently working on research oriented projects using Python and data analytics.