DCG Wire and Cables Limited is coming up with an IPO worth INR 49.99 crores, consisting of a fresh issue of 49.99 lakh shares. The company plans to utilize the funds raised to meet the capital expenditure for building construction and working capital requirements.
DCG Wires And Cables IPO – Important Dates
| DCG Wire and Cables IPO Date | April 8, 2024 to April 10, 2024 |
| DCG Wire and Cables IPO Listing Date | April 16, 2024 |
| DCG Wire and Cables IPO Price | INR 100 per share |
| DCG Wire and Cables IPO Lot Size | 1200 Shares |
| DCG Wire and Cables IPO Total Issue Size | INR 49.99 crores |
| DCG Wire and Cables IPO Basis of Allotment | April 12, 2024 |
| DCG Wire and Cables IPO Initiation of Refunds | April 15, 2024 |
| DCG Wire and Cables IPO Credit of Shares to Demat | April 15, 2024 |
| DCG Wire and Cables IPO Issue Type | Fixed Price Issue |
| DCG Wire and Cables IPO Listing At | NSE SME |
DCG Wires And Cables Limited IPO – Company Profile
DCG Wires and Cables is a manufacturer of copper cables and wires. The primary focus is manufacturing different types of copper cables which find application in Transformers. The product portfolio comprises copper strips, paper-covered copper strips, and wires (Kraft/Crepe/Nomex/Mica), bare copper wires and strips, copper tapes, and fiber glass copper. The company offers a wide range of copper products. The products include bare copper strips, conductors, and wires, ensuring optimal conductivity for various applications.
They also provide paper-covered copper conductors in both rectangular and round shapes, as well as multi-paper-covered copper conductors and connection cables designed specifically for transformers. For added durability, it offers fiberglass-covered copper strips and wires. Additionally, the copper submersible wires and strips are perfect for submersible applications. The company also supplies twin and triple-bunched paper-covered copper strips and bunch conductors.
DCG Wires And Cables Ltd IPO Review
The financial data for a company going for an IPO showcases impressive growth and improved performance. Revenue surged from ₹5,452.47 lakhs to ₹7,633.22 lakhs, accompanied by significant equity, profitability, and EPS increases. This analysis suggests a positive outlook but advises thorough market assessment before investment.
- Revenue Growth: The company has shown significant revenue growth from ₹5,452.47 lakhs in March 2023 to ₹7,633.22 lakhs in February 2024, indicating positive business performance.
- Equity and Liabilities: Equity has also increased substantially from ₹1,532.99 lakhs to ₹2,366.82 lakhs, while liabilities have increased moderately. The debt-equity ratio has slightly improved, indicating manageable debt levels.
- Profitability: The company’s profitability has seen a remarkable improvement, with profit after tax increasing from ₹172.06 lakhs to ₹847.10 lakhs. This signifies efficient cost management and better operational performance.
- Earnings per Share (EPS): The basic EPS has risen significantly from ₹1.31 to ₹6.44, reflecting improved earnings per share for shareholders.
- Return on Net Worth (RoNW): The RoNW has surged from 11.22% to 35.79%, indicating enhanced profitability and returns on shareholder equity.
- Financial Position: Total assets have increased substantially, indicating potential business expansion or asset acquisitions. The current ratio has slightly decreased but remains above 1, indicating the company’s ability to meet short-term obligations.
DCG Wires And Cables IPO Fundamental Analysis
| Particulars | As of 31st March 2023 | As of 29th February 2024 |
| Revenue (₹ in lakhs) | 5,452.47 | 7,633.22 |
| Equity (₹ in lakhs) | 1,532.99 | 2,366.82 |
| Expenses (₹ in lakhs) | 5,225.24 | 6,507.04 |
| Profit and Loss After Tax (₹ in lakhs) | 172.06 | 847.10 |
| RoNW (%) | 11.22% | 35.79% |
| Basic EPS only (₹) | 1.31 | 6.44 |
| NAV per Equity Share (₹) | 11.57 | 17.94 |
| Total Assets (in lakhs) | 3,564.12 | 6,152.13 |
| Total Liabilities (in lakhs) | 2,031.13 | 3,785.31 |
| Current Ratio (In times) | 1.76 | 1.56 |
| Debt Equity Ratio | 1.18 | 1.09 |
DCG Wires And Cables Ltd IPO Peer Comparison
DCG Cables and Wires Limited shows modest total income and financial metrics. Cords Cable Industries Limited demonstrates higher total income and EPS, albeit lower RoNW. Universal Cables Limited leads with substantial total income, robust EPS, and a competitive RoNW.
| Company | Total Income(₹ in lakhs) | Face Value (₹) | EPS (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| DCG Cables and Wires Limited | 5455.18 | 10 | 1.31 | 11.23% | 11.57 |
| Cords Cable Industries Limited | 52,764.72 | 10 | 5.52 | 4.58% | 123.15 |
| Universal Cables Limited | 2,21,957.70 | 10 | 18.21 | 8.93% | 203.87 |
DCG Wires And Cables IPO Objective
The main objective is to utilize IPO funds for capital expenditure on building construction, specifically for shifting manufacturing units to Bavla, and to meet growing working capital needs due to significant business expansion.
- To meet capital expenditure for building construction: The Company has decided to shift all three manufacturing units to Bavla near Ahmedabad. The IPO funds of Rs. 5.36 crores will be utilized to complete the building.
- To meet working capital requirements: The business of the company increased by 96.90% almost double in FY 2022-23 in comparison to FY 2021-22. To meet the increasing business requirement, the company plans to utilize INR 38.79 crores from the net proceeds to meet the working capital requirements.
DCG Wires And Cables Ltd IPO Risks And Challenges
The company’s risks include susceptibility to disruptions in Gujarat impacting operations, potential adverse effects from manufacturing facility or supplier issues, and challenges from competitive pressures affecting financial performance and business stability.
- The company is supplying the products to customers spread over the state of Gujarat. In the event of any natural or manmade calamity in the state of Gujarat, the entire business operation comes to stand standstill. Under the circumstances, the business, revenue, and profitability will be adversely affected.
- Any disruption, breakdown, or shutdown of the manufacturing facilities or the original equipment manufacturer suppliers may have a material adverse effect on the business, financial condition, results of operations, and cash flows.
- The company operates in a competitive business environment. Competition from existing players and new entrants and consequent pricing pressures may adversely affect the business, financial condition, and results of operations.
DCG Wires And Cables Limited IPO – Industry & Market Potential
India is an attractive hub for foreign investments in the manufacturing sector. Several mobile phone, luxury, and automobile brands, among others, have set up or are looking to establish their manufacturing bases in the country. The manufacturing sector of India has the potential to reach US$ 1 trillion by 2025. The implementation of the Goods and Services Tax (GST) will make India a common market with a GDP of US$ 3.4 trillion along with a population of 1.48 billion people, which will be a big draw for investors.
The Indian Cellular and Electronics Association (ICEA) predicts that India has the potential to scale up its cumulative laptop and tablet manufacturing capacity to US$ 100 billion by 2025 through policy interventions. One of the initiatives by the Government of India’s Ministry for Heavy Industries & Public Enterprises is SAMARTH Udyog Bharat 4.0, or SAMARTH Advanced Manufacturing and Rapid Transformation Hubs. This is expected to increase the competitiveness of the manufacturing sector in the capital goods market.
DCG Wires And Cables IPO – Type of Offer
DCG Wire and Cables Limited plans to launch an IPO valued at INR 49.99 crores, comprising a fresh issue of 49.99 lakh shares. The company intends to use the raised capital for building construction expenses and fulfilling working capital needs.
DCG Wires And Cables Limited IPO Offer Size
The offer size of DCG Wire and Cables Limited’s IPO is INR 49.99 crores, with a fresh issue of 49.99 lakh shares. The company plans to utilize these funds for capital expenditure in building construction and meeting working capital requirements.
DCG Wires And Cables IPO Allotment Structure
DCG Wires And Cables Limited’s IPO allotment structure includes a Retail Individual Investors (RII) category with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Other than retail individual investors: Such applications with value exceeds INR 2 lakhs.
- Market Maker Reservation: A certain percentage i.e., 2,52,000 shares, are reserved for market makers.
How to apply for a DCG Wires And Cables Limited IPO?
To apply for the DCG Wires And Cables IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the DCG Wires And Cables IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the DCG Wires And Cables IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares. Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to check DCG Wires And Cables IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the DCG Wires And Cables IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the DCG Wires And Cables IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance. Apart from Alice Blue, there are other ways to check the allotment status of the DCG Wires And Cables IPO:
- Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the DCG Wires And Cables IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (BSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
DCG Wires And Cables Limited IPO Offer Registrar
The DCG Wires And Cables IPO’s registrar is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No. S6-2, 6th Floor,
Pinnacle Business Park,
Next to Ahura Centre, Mahakali Caves Road,
Andheri (East), Mumbai
Website: www.bigshareonline.com
E-Mail: [email protected]
DCG Wires And Cables IPO – FAQs
The allotment date of the DCG Wires And Cables IPO is April 12, 2024.
The price of the company share is INR 100 per share.
The offer size for DCG Wire and Cables Limited’s IPO is INR 49.99 crores, with a fresh issue of 49.99 lakh shares. The company aims to utilize these funds for capital expenditure related to building construction and fulfilling working capital requirements.
The listing date of the DCG Wires And Cables IPO is April 16, 2024.
