A smallcap company in which legendary actor Amitabh Bachchan holds a minority stake has given multifold returns to investors in the last three years. The multibagger stock has surged more than 600% in the last three years. This is DP Wires, a Madhya Pradesh based company known for high quality steel wires.
According to reports, Amitabh Bachchan held 332,800 shares, representing 2.45 percent stake, in DP Wires since September 2018. However, he recently sold a part of the shares of the company. Big B held 1.47 percent stake in DP Wires as of the quarter ending September 30,2023, as per the stock exchange data.
DP Wires has witnessed a significant rise in its market capitalisation, from Rs 100.40 crore in September 2018 to Rs 488.92 crore in December 2023. The company’s net sales have witnessed a compound annual growth rate of 25.70 percent. The net sales increased from Rs 195.38 crore in FY2017 to Rs 613.24 crore in FY22.
In terms of shareholding pattern, as of the end of September quarter of FY24, the promoters collectively hold a significant stake of 70.40 percent in DP Wires. The retail investors and high net-worth individuals hold 8.88 percent and 8.85 percent stakes respectively in the company.
On September 21, 2017, DP Wires launched its IPO and it was listed on October 5 at Rs 75 per share. DP Wires stock closed at Rs 585.7 apiece on NSE on Wednesday, December 20. This reflects a 680% gain since its listing price. The stock has surged over 666% in the last three years and over 63% in the last one year.
DP Wires, based out of Ratlam, Madhya Pradesh, specialises in producing and supplying steel wires and plastic films. These products serve various industries such as oil and gas, power, environmental engineering, civil engineering, energy, automotive and infrastructure. The company began steel wire production in 1971 and has evolved to become a major player in the industry with a production capacity of 50,000 metric tons (MT) of steel wire per year. It aims to increase its manufacturing capacity to 70,000 MT annually.
DP Wires is also a big supplier of quality products like Steel Wire, Low Relaxation Pre-stressed Concrete Strands, as well as Normal Relaxation Pre-stressed Concrete Wire and Strands.
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