Shares of the latest D-Street debutant, Plaza Wires, hit the upper circuit band for the fifth consecutive session today. The stock in Wednesday’s session (October 25) was locked in the 5 per cent upper circuit at Rs 118.5 apiece on the BSE.

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The scrip, since its listing on October 12, has zoomed 119 per cent over the IPO issue price of Rs 54 per share, more than doubling investors’ money in less than 10 days.

After an overwhelming response to the public offer, the stock of the wire manufacturer was listed at Rs 84, an impressive premium of around 56 per cent over the issue price of Rs 54.

And since then, it has continued to rally even though the overall market sentiment continues to be weak given the escalating Middle East violence and the hardening US bond yields.

“Despite market volatility and fierce competition in a sector crowded with industry giants, Plaza Wires' IPO proved a success, doubling investors' returns."

"The IPO witnessed strong interest, with record-breaking bids from retail investors and a strong exchange debut. Post-listing, Plaza Wires' shares consistently rose, driven by reasonable valuations and a performance gap between large and small-cap companies in the sector."

"We maintain our belief that the wires and cable segment will benefit from the government's infrastructure-focused initiatives and expansion plans," said Prashanth Tapse, Sr. VP Research Analyst at Mehta Equities, on the IPO’s stellar performance.

Plaza Wires demonstrates a robust business model and a solid order book, benefiting from favourable input prices, particularly in the case of copper, which is poised to enhance margins, notes Avinash Gorakshakar, Head of Research at ProfitMart Securities.

"With the entire cables and wires industry operating at full capacity due to strong demand, we anticipate Plaza Wires to exhibit significant growth potential, offering a promising 25 per cent upside in the coming 12 months," Gorakshakar added.

Plaza Wires IPO comprised a fresh share issuance of 1.32 crore equity shares, aggregating up to Rs 71.2 crore.

The company intended to deploy the proceeds from the issue towards setting up a new manufacturing facility for house wires, aluminium cables, and fire-resistant wires.

Incorporated in 2006, Plaza Wires is engaged in the manufacturing and marketing of a host of products under its flagship brand, Plaza Cables, and its home brands, such as Action Wires and PCG.