About the Company:
DCG Cables and Wires Ltd is a manufacturer of copper cables and wires. Company’s primarily focus is on manufacturing of different types of copper cables which finds application in Transformers.
Company’s product portfolio consists of Copper Strips, Paper Covered Copper Strips and Wires (Kraft/Crepe/Nomex/Mica) Bare Copper Wires and Strips, Copper Tapes and Fiber Glass Copper.
Company sells a wide range of copper products such as bare copper strips, conductors, and wires, ensuring optimal conductivity for various applications.
Company also provides 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.
Company is in the B2B (Business to Business) Segment only.
Company majorly supplies products to the transformer manufacturing companies in India.
Currently more than 94.81% of company’s sales comes from Gujarat and recently, company started selling in Maharashtra and Karnataka region, which contributes close 5.16% of our total sales for the period ended September 30, 2023.
Company’s History:
Company’s promoters – Mr. Harshadbhai Patel, Mrs. Ushaben Patel and Mr. Devang Patel, combined having more than 2 decade of experience in this industry.
Company’s one of the Promoter Mr. Devang Patel, ventured into copper trading business in the year 2008 by starting a proprietorship firm – M/s. Dhara Conductors.
Within just two years of starting trading business in M/s. Dhara Conductors, he ventured into manufacturing business of copper strips on job work basis by setting up a manufacturing unit at Odhav, Ahmedabad.
During the tenure of proprietorship firm till 2016, company’s promoter has established good relationship with their regular clients.
Thereafter, in the year 2017, DCG Copper Industries Pvt. Ltd. (Now – DCG Cables and Wires Ltd.) was incorporated with a primary focus on the production of Copper Strips, Paper Covered Copper Strips and Wires (Kraft/Crepe/Nomex/Mica) Bare Copper Wires and Strips, Copper Tapes at Odhav plant.
Products Manufactured by the Company:
- Bare Copper Strips / Bare Copper Flats.
- Paper Covered Copper Conductors (Rectangular & Round).
- Multi Paper Covered Connection Cables / Lead Wires for Transformers.
- Copper Wire Rod.
- Fiber Glass Covered Copper Strip / Wire.
- Twin, Triple Bunched Paper Covered Copper Strips.
- Copper Submersible Wire.
- Copper Round Bar.
Company is Planning to Expand the Product Range and Up-selling & Cross-selling.
Expanding the product range will help position Company as a market leader capable of meeting a wide spectrum of cable and wire demands.
This can give the company a competitive edge over competitors with narrower offerings. As Company introduces new cable and wire solutions, it can help differentiate company in the market. Innovative products that address unique challenges can create a compelling value proposition.
A broader product range creates opportunities for cross-selling and up-selling. Clients who initially purchase one type of cable or wire may discover additional solutions from the Company that meet their needs, leading to increased sales.
Company’s Future Products Line:
- Single-Core Cable Wire.
- Multi-Core Cables.
- 3-Core Flat Cable.
- Twin Twisted Flexible Wires.
- FEP Insulated Wires.
- PFA Insulated Wires.
Company’s installed Capacity:
Company has a combined installed capacity of 5,868MT for manufacturing bare Copper wire & Strips, 1,404 MT for Paper Covered Copper Strips & wire, 1,512 MT for Cable Wires, 5,760 MT for Copper Rods, 10,080 MT for Copper Flats, 972 MT for Submersible Wires and 540 MT for Fiber Glass Covered Copper Strips.
Company’s Manufacturing Facilities: (Company has three manufacturing units)
- Odhav, Ahmedabad.
- Kubadthal, Ahmedabad.
- Waghodia, Vadodara.
Company is in the process of setting up a new manufacturing plant: (Consolidation of manufacturing facilities)
Company is currently in process of setting up a new manufacturing plant at Bhayala, Bavla, Gujarat, in order to increase the manufacturing capabilities.
The land on which the said plant is being constructed comprises of over 8308 sq. mtrs. area and is obtained by us on lease from our Promoter Director, Mr. Devang Patel for a period of 7 years from November 20, 2023.
As and when needed, Company is gradually planning to consolidate and shift all three existing manufacturing facilities to this new manufacturing facility for better administration, efficiency and cost optimization.
Competitors in the Business:
The Cables and Wires Industry is extremely competitive where the key factors of competition primarily comprise of product quality, cost, delivery, development and management.
In this highly competitive industry, company compete with other manufacturers and suppliers in the world and in India.
Some of the competitors are – Elite Conductor Ltd., Vidhya Wires Pvt. Ltd., Chandresh Cables Ltd., RR Cables and Jaipur Conductor.
Management Team:
- Mr. Devangbhai Patel (Designation: Managing Director)
- Mr. Harshadbhai Patel (Designation: Non-Executive Director)
Objectives of the Issue:
Fresh Issue: (Rs.50 cr)
- Capital Expenditure for building construction
- Working capital requirement.
- General Corporate Purpose.
- Meeting Public Issue Expenses.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Capital Expenditure for building construction | 5.36 cr |
| Long term Working capital requirement | 33.20 cr |
| General corporate purposes | 8.72 cr |
| Net Proceeds | 47.29 cr |
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 29th Feb 24 |
|---|---|---|---|---|
| Revenue | 14.62 | 27.70 | 54.55 | 76.39 |
| Net Profit | 0.10 | 0.37 | 1.72 | 8.47 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| DCG Cables and Wires Ltd | 10 | 3.71 | 26.95 | 11.23% | 11.57 |
| Cords Cable Industries Ltd | 10 | 5.52 | 31.92 | 4.58% | 123.15 |
| Universal Cables Ltd | 10 | 18.21 | 30.43 | 8.93% | 203.87 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 8th April 2024 |
| Issue Closes on | 10th April 2024 |
| Issue Price | Rs.100 |
| Face Value | Rs.10 |
| Minimum Lot | 1200 Shares |
| Minimum Investment | Rs.1,20,000 |
| Issue Constitutes | 27.54 % |
| Issue Size | Rs.50 cr |
| Market Cap | Rs.181.50 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 49,99,200 (Rs.50 cr) |
| Equity Shares Prior to the Issue | 1,31,50,400 |
| Equity Shares after the Issue | 1,81,49,600 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 12th April 2024 |
| Initiation of Refunds | on or Before 15th April 2024 |
| Credit of Equity Shares: | on or Before 15th April 2024 |
| Listing Date: | on or Before 16th April 2024 |
| Company Contact Info: |
|---|
| DCG Cables and Wires Limited Address: 12, Agrasen Industrial Estate, Chotalal ni Chali, Odhav Road, Ahmedabad -382415, Gujarat. Tele No: +91 7861804932 E-mail: dcgcopperindustries@yahoo.com Website: www.dcgcableswiresltd.com |
| Should You Subscribe or Not ? |
|---|
|
Risk-taking investors should consider subscribing to DCG Cables and Wires IPO, as it presents an opportunity for potential growth and expansion in the dynamic cables and wires market, providing a chance to capitalize on emerging trends and technological advancements while diversifying their investment portfolio. With a strategic approach and thorough due diligence, this IPO could offer substantial returns for those willing to take calculated risks and seize the opportunity to invest in a promising venture poised for success in the competitive industry landscape. |
| Lead Manager to the Issue: |
|---|
| INTERACTIVE FINANCIAL SERVICES LIMITED Address: Office No. 508, Fifth Floor, Priviera, Nehru Nagar, Ahmedabad – 380 015, Gujarat, India Tel No.: 079 049088019 Email: mbd@ifinservices.in Web Site: www.ifinservices.in |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Address: Office No. S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East), Mumbai – 400093 Tel No.:+91 22-62638200 E-Mail: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
