Plaza Wires shares to list on bourses today

On Thursday, Plaza Wires will make its Dalal Street debut. Judging by the patterns in the grey market, the company is expected to have a respectable first day there. Due to improving market sentiments amid geopolitical concerns, the company has been able to maintain its premium on the unofficial market prior to its IPO.

Considering the strong subscription, Plaza Wires is expected to open at a handsome premium over its listing price, said Anushi Vakharia, Research Analyst at StoxBox. "However, We continue to remain cautious over the long-term trajectory of the business as it operates in an industry that is prone to high raw material volatility along with being part of a highly competitive industry," she said.

"While the P/E of 22 times is based on FY2023 earnings which prices in most of the positives of the company, we advise the investors to book profits today and adopt a wait-and-watch approach to consider it for a long-term investment," Vakharia said.