DCG Cables & Wires IPO, valued at Rs 49.99 crores, presents a lucrative investment avenue with 49.99 lakh fresh issue shares. Subscription for this IPO commences on April 8, 2024, concluding on April 10, 2024. Investors can anticipate the allotment process to finalize by April 12, 2024, paving the way for the company’s listing on NSE SME, tentatively scheduled for April 16, 2024.
Priced at Rs. 100 per share, investors should note the minimum application requirement of 1200 shares, translating to a minimum investment of Rs. 120,000 for retail participants. High Net Worth Individuals (HNIs) are required to invest in a minimum of 2 lots, totaling 2,400 shares, amounting to Rs. 240,000.
Interactive Financial Services Ltd, acting as the book running lead manager, ensures the smooth execution of the IPO, while Bigshare Services Pvt Ltd serves as the registrar. Nikunj Stock Brokers, the designated market maker, facilitates efficient trading processes for DCG Cables & Wires IPO.
As investors navigate the market for growth opportunities, DCG Cables & Wires Limited IPO emerges as a promising prospect, poised to deliver favorable returns in the evolving landscape of the cable and wire industry.
DCG Cables & Wires IPO Details
IPO Timeline and Structure DCG Cables & Wires IPO is open for subscription from April 8, 2024, to April 10, 2024. Priced at Rs. 100 per share, with a face value of Rs. 10 per share, the IPO entails a fixed price issue. The lot size for application is set at 1200 shares, with a total issue size of 4,999,200 shares, amounting to Rs. 49.99 crores.
Listing Information Upon listing, DCG Cables & Wires IPO will be traded on the NSE SME platform. The shareholding pre-issue stands at 13,150,400 shares, which will increase to 18,149,600 shares post-issue. Additionally, the market maker portion comprises 252,000 shares.
Key Takeaways for Investors Participation in DCG Cables & Wires IPO should note its fixed price issue structure, with a lot size of 1200 shares and a total issue size of 4,999,200 shares. The IPO offers an opportunity to invest in a company with substantial growth potential in the cable and wire industry, slated for listing on the NSE SME platform. As the IPO period approaches, prospective investors should conduct thorough due diligence to make informed investment decisions in line with their financial objectives.
| IPO Date | April 8, 2024 to April 10, 2024 |
| Face Value | ₹10 per share |
| Price | ₹100 per share |
| Lot Size | 1200 Shares |
| Total Issue Size | 4,999,200 shares (aggregating up to ₹49.99 Cr) |
| Fresh Issue | 4,999,200 shares (aggregating up to ₹49.99 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 13,150,400 |
| Share holding post issue | 18,149,600 |
| Market Maker portion | 252,000 shares |
DCG Cables & Wires IPO Reservation
Investor Category Allocation DCG Cables & Wires IPO ensures equitable distribution of shares among investor categories. Retail investors are offered 50% of the net offer, providing them with an opportunity to participate actively in the IPO. Similarly, the remaining 50% of the net offer is allocated to other investor categories, ensuring inclusivity and fairness in the IPO reservation process.
Key Considerations for Investors Prospective investors should consider their investor category while evaluating participation in DCG Cables & Wires IPO. Retail investors, in particular, are encouraged to capitalize on their reserved share allocation, leveraging this opportunity to potentially benefit from the company’s growth trajectory post-listing. Other investor categories also stand to gain from their allocated share portion, contributing to a diverse investor base for DCG Cables & Wires IPO.
As the IPO reservation period unfolds, investors are advised to stay informed about the allocation process and any relevant updates to make well-informed investment decisions aligned with their financial objectives and risk appetite.
| Investor Category | Shares Offered |
| Retail Shares Offered | 50% of the net offer |
| Other Shares Offered | 50% of the net offer |
DCG Cables & Wires IPO Timeline Tentative Schedule
DCG Cables & Wires IPO unfolds according to a meticulously planned schedule, ensuring efficiency and transparency throughout the process.
IPO Opens: Commencing on April 8, 2024, investors can actively subscribe to the IPO, seizing the opportunity to secure their investment positions.
IPO Closes: The subscription window concludes on April 10, 2024, providing investors with a limited timeframe to participate in the IPO.
Basis of Allotment: On Friday, April 12, 2024, the basis of allotment is determined, facilitating the allocation of shares among investors.
Initiation of Refunds: Starting Monday, April 15, 2024, the refund process begins, ensuring prompt reimbursement for unsuccessful applicants.
Credit of Shares to Demat: Concurrently on April 15, 2024, shares are credited to investors’ Demat accounts, enabling seamless ownership transfer.
Listing Date: DCG Cables & Wires IPO is set to debut on the stock market on Tuesday, April 16, 2024, marking an important milestone for investors and the company alike.
Investors are reminded that the cut-off time for UPI mandate confirmation is 5 PM on April 10, 2024, underscoring the importance of timely compliance to ensure smooth processing of applications.
As the IPO timeline progresses, investors are encouraged to stay abreast of updates and adhere to key deadlines to maximize their participation in DCG Cables & Wires IPO.
| IPO Open Date | Monday, April 8, 2024 |
| IPO Close Date | Wednesday, April 10, 2024 |
| Basis of Allotment | Friday, April 12, 2024 |
| Initiation of Refunds | Monday, April 15, 2024 |
| Credit of Shares to Demat | Monday, April 15, 2024 |
| Listing Date | Tuesday, April 16, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on April 10, 2024 |
Grey Market Premium (GMP) DCG Cables & Wires IPO
The Grey Market Premium (GMP) for DCG Cables & Wires SME IPO reflects an encouraging trend, with the last recorded GMP standing at Rs. 18 as of April 6th, 2024, 09:55 AM. Considering the price band of Rs. 100.00, the estimated listing price is anticipated to be Rs. 118, factoring in the cap price and today’s GMP.
Expected Gain/Loss Investors can anticipate a potential gain of 18.00% per share, highlighting the positive sentiment surrounding DCG Cables & Wires SME IPO.
Retail Subject to Sauda Retail investors are poised for significant participation, with the Retail Subject to Sauda pegged at Rs. 16,400, underscoring the strong interest in the IPO among individual investors.
Market Outlook Daily updates on GMP provide valuable insights into the market sentiment and expected listing performance. Today’s GMP trend indicates an upward movement, signaling robust anticipation for a strong listing. The fluctuation in GMP, ranging from Rs. 0 to Rs. 18 across the last 5 sessions, underscores the dynamic nature of grey market activities.
As investors monitor the daily price trend of DCG Cables & Wires SME IPO GMP, staying informed about market dynamics is crucial for making informed investment decisions. The positive GMP outlook and expected listing price reinforce investor confidence in the potential growth prospects of DCG Cables & Wires SME IPO. Stay tuned for further updates on GMP to navigate the evolving market landscape effectively.
| GMP Date | IPO Price | GMP | Sub2 Sauda Rate | Estimated Listing Price | Last Updated |
| 06-04-2024 | 100.00 | ₹18 no change | 16400 | ₹118 (18%) | 6-Apr-2024 10:55 |
| 05-04-2024 | 100.00 | ₹18 Up | 16400 | ₹118 (18%) | 6-Apr-2024 0:29 |
| 04-04-2024 | 100.00 | ₹10 Up | 9100 | ₹110 (10%) | 5-Apr-2024 0:29 |
| 03-04-2024 | 100.00 | ₹0 no change | — | ₹ (0%) | 3-Apr-2024 7:03 |
| 02-04-2024 | 100.00 | ₹0 no change | — | ₹ (0%) | 2-Apr-2024 17:32 |
DCG Cables & Wires IPO Lot Size
Investors participating in the DCG Cables & Wires IPO can bid for a minimum of 1200 shares and in multiples thereof. The table below illustrates the minimum and maximum investment requirements for both retail investors and High Net Worth Individuals (HNI) in terms of shares and amount:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1200 | Rs. 120,000 |
| Retail (Max) | 1 | 1200 | Rs. 120,000 |
| HNI (Min) | 2 | 2400 | Rs. 240,000 |
Retail investors can bid for a minimum of 1 lot, equivalent to 1200 shares, requiring an investment of Rs. 120,000. The maximum investment for retail investors also stands at 1 lot, ensuring equal opportunity for participation.
For High Net Worth Individuals (HNI), the minimum bid comprises 2 lots, totaling 2400 shares, with an investment requirement of Rs. 240,000. This structure enables HNI investors to engage with the IPO while catering to their investment preferences and financial capacity.
As investors consider their bidding strategy for the DCG Cables & Wires IPO, they can utilize this information to tailor their investment decisions in alignment with their investment objectives and risk tolerance.
DCG Cables & Wires IPO Promoter Holding
DCG Cables & Wires Limited is backed by a dedicated team of promoters, including Mr. Devang Patel, Mr. Harshadbhai Patel, and Ms. Ushaben Patel. The promoter holding before the IPO stands at 100.00%, reflecting their strong commitment and involvement in the company’s operations and growth.
Post-issue, the promoter holding is expected to decrease to 72.45%, allowing for broader shareholder participation and potentially enhancing market liquidity. This transition signifies the promoters’ strategic decision to open up ownership opportunities to external investors, facilitating the company’s expansion and development initiatives.
As DCG Cables & Wires Limited progresses towards its IPO, investors can take confidence in the ongoing commitment of its promoters and their shared vision for the company’s future growth and success. The reduced promoter holding post-issue reflects a balanced approach towards corporate governance and shareholder value creation.
| Share Holding Pre Issue | 100.00% |
| Share Holding Post Issue | 72.45% |
About DCG Cables & Wires Limited
Established in 2017, DCG Cables & Wires Limited is a prominent manufacturer specializing in copper cables and wires tailored for transformer manufacturers across India.
Product Portfolio: DCG Cables & Wires offers a diverse range of products, including Copper Strips, Paper Covered Copper Strips (rectangular and round shapes), various paper-covered copper conductors and connection cables, and an assortment of wires including kraft, crepe, nomex, and mica varieties. Additionally, the company manufactures Bare Copper Wires and Strips, Copper Tapes, and Fiber Glass Copper.
Manufacturing Facilities: The company operates three state-of-the-art manufacturing facilities strategically located in Odhav and Kubadthal in Ahmedabad, as well as Waghodia in Vadodara. These facilities boast a combined production capacity, including 5,868 MT for bare copper wire and strip, 1,404 MT for paper-coated copper strips and wires, 1,512 MT for cable wires, 5,760 MT for copper rods, 10,080 MT for flat copper wires, 972 MT for submersible wires, and 540 MT for glass fiber-coated copper strips.
Workforce: As of February 29, 2024, DCG Cables & Wires Limited has a dedicated workforce of approximately 69 individuals, contributing to the company’s operational excellence and continued growth.
With its comprehensive product portfolio, robust manufacturing capabilities, and skilled workforce, DCG Cables & Wires Limited remains committed to delivering high-quality solutions to meet the evolving demands of the transformer manufacturing industry in India.
DCG Cables & Wires Limited Financial Information Restated Consolidated
DCG Cables & Wires Limited showcases robust financial performance as evidenced by its restated consolidated financial information. As of February 29, 2024, the company’s assets surged to Rs. 6,152.13 lakhs, indicating substantial growth compared to the previous fiscal year. Revenue also witnessed a significant uptick, reaching Rs. 7,639.08 lakhs, showcasing the company’s revenue-generating prowess.
Profitability and Stability The company’s profitability is noteworthy, with Profit After Tax soaring to Rs. 847.10 lakhs, underscoring its profitability and operational efficiency. Additionally, DCG Cables & Wires Limited demonstrates financial stability, with Net Worth escalating to Rs. 2,367.15 lakhs, reflecting strong financial health and resource base.
Strategic Investments While the company’s Reserves and Surplus have increased, indicating prudent financial management, Total Borrowings have also risen, potentially reflecting strategic investments or expansion endeavors. This growth trajectory positions DCG Cables & Wires Limited as a formidable player in the industry, poised for continued success and expansion.
Future Outlook With its solid financial foundation and impressive growth trajectory, DCG Cables & Wires Limited is well-positioned to capitalize on emerging opportunities in the market. Investors looking for promising ventures in the cable and wire industry can consider DCG Cables & Wires Limited as a viable investment option, given its strong financial performance and growth potential.
| Period Ended | 29 Feb 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 6,152.13 | 3,564.12 | ||
| Revenue | 7,639.08 | 5,455.18 | ||
| Profit After Tax | 847.10 | 172.06 | 37.24 | 10.40 |
| Net Worth | 2,367.15 | 1,533.82 | 443.69 | 13.14 |
| Reserves and Surplus | 1,051.78 | 217.99 | ||
| Total Borrowing | 2,569.83 | 1,812.27 | 635.44 | 29.80 |
Key Performance Indicator DCG Cables & Wires IPO
DCG Cables & Wires IPO presents a compelling investment opportunity, supported by robust Key Performance Indicators (KPIs) as of February 29, 2024. The market capitalization stands at Rs 181.5 Cr, indicating the company’s market value and potential.
Financial Health Metrics:
Return on Equity (ROE): DCG Cables & Wires demonstrates a commendable ROE of 35.92%, signifying efficient utilization of shareholder equity to generate profits.
Return on Capital Employed (ROCE): The ROCE of 59.10% reflects the company’s ability to generate profits from its capital investments, highlighting operational efficiency.
Debt/Equity Ratio: With a Debt/Equity ratio of 1.09, the company maintains a balanced capital structure, mitigating excessive reliance on debt financing.
Return on Net Worth (RoNW): DCG Cables & Wires achieves a remarkable RoNW of 35.79%, emphasizing its ability to generate profits relative to its net worth.
Market Performance Metrics:
Price-to-Book Value (P/BV) Ratio: The P/BV ratio of 5.57 indicates investor confidence in the company’s growth prospects and asset value relative to its market price.
Profit After Tax (PAT) Margin: With a PAT Margin of 11.09%, the company exhibits efficient cost management and revenue generation capabilities.
| KPI | Values |
| ROE | 35.92% |
| ROCE | 59.10% |
| Debt/Equity | 1.09 |
| RoNW | 35.79% |
| P/BV | 5.57 |
| PAT Margin (%) | 11.09 |
Objects of the Issue DCG Cables & Wires IPO Objectives
DCG Cables & Wires IPO aims to utilize the Net Proceeds from the issue strategically, aligning with the company’s growth and expansion objectives. The proposed utilization includes:
Capital Expenditure for Building Construction: The company intends to allocate funds towards capital expenditure for building construction, potentially expanding its manufacturing facilities or infrastructure to accommodate growth and enhance operational capabilities.
Working Capital Requirement: A portion of the Net Proceeds will be allocated to address the company’s working capital requirements, ensuring smooth day-to-day operations and facilitating sustained business growth.
General Corporate Purpose: DCG Cables & Wires plans to utilize the proceeds for general corporate purposes, which may include investment in research and development, technology upgrades, marketing initiatives, or other strategic initiatives aimed at driving long-term value creation.
Meeting Public Issue Expenses: Lastly, a portion of the proceeds will be utilized to cover the expenses associated with the public issue, including underwriting, legal, regulatory, and marketing expenses, ensuring a seamless and successful IPO process.
By allocating the Net Proceeds towards these objectives, DCG Cables & Wires aims to enhance its operational efficiency, strengthen its market position, and capitalize on growth opportunities in the cable and wire industry. Investors can take confidence in the company’s prudent utilization of funds to drive value creation and long-term sustainability.
