2024-07-02 18:45:02
Bansal Wire IPO: Steel wire manufacturer Bansal Wire is launching an Initial Public Offering (IPO) valued at Rs 745 crore, which entirely comprises a fresh issue of 29.1 million shares.
The Bansal Wire IPO subscription period opens on July 03, 2024, and closes on July 05, 2024.
The Bansal Wire IPO price band is set between Rs 243 to Rs 256 per share, with a minimum lot size for applications consisting of 58 shares.
Proceeds from the IPO will primarily be utilised for the repayment or prepayment of certain outstanding borrowings incurred by the company and its subsidiary. Additionally, funds will be allocated towards meeting working capital requirements and for general corporate purposes.
Established in December 1985, Bansal Wire Industries Limited specialises in manufacturing stainless steel wire. The company operates across three primary segments: high carbon steel wire, low carbon steel wire (mild steel wire), and stainless steel wire, producing a diverse range of over 3,000 wire products in various sizes.
With a customer base exceeding 5,000 across different industries, Bansal Wire Industries Limited prioritises diversification to mitigate risks, avoiding heavy reliance on any single customer or customer type. The company employs a flexible pricing strategy to manage fluctuations in material costs effectively.
Bansal Wire Industries Limited operates manufacturing facilities in Mohan Nagar and Loni Industrial Area in Ghaziabad, as well as in Bahadurgarh, Jhajjar, Haryana, with two units located in Loni Industrial Area, Ghaziabad.
Here is all you need to know about the Bansal Wire IPO:
Lot size
For retail investors, the minimum investment required is Rs 14,848. The minimum investment size for sNII (Non-Institutional Investors) is 14 lots, equivalent to 812 shares, totaling Rs 207,872. For bNII, the minimum investment size is 68 lots, totaling 3,944 shares, amounting to Rs 1,009,664.
Allotment, listing details
The allotment for the Bansal Wire IPO are anticipated to be finalised on Monday, July 8, 2024. The IPO is scheduled to list on both the BSE and NSE, with the tentative listing date set for Wednesday, July 10, 2024.
GMP
The Grey Market Premium (GMP) of the company is Rs 65, indicating a listing gain of 25.4 per cent for Bansal Wire on the bourses.
Lead managers
SBI Capital Markets Limited and Dam Capital Advisors Ltd (formerly known as IDFC Securities Ltd) are serving as the book running lead managers for the Bansal Wire IPO. KFin Technologies Limited has been appointed as the registrar for the issue.
Financials
Between the financial years ending March 31, 2023, and March 31, 2024, Bansal Wire Industries Limited reported a 1.99 per cent increase in revenue and a 31.48 per cent rise in profit after tax (PAT).
Should you subscribe?
According to domestic brokerage firm Anand Rathi, Bansal Wire Industries Limited has achieved a revenue of Rs 2,466 crore in Fiscal 2024, solidifying its strong market position and brand reputation.
Serving a diverse customer base exceeding 5,000 clients across various industrial sectors, analysts noted, the company demonstrates robust market presence.
With a Price-to-Earnings (P/E) ratio of 50.8 times based on FY24 earnings, Bansal Wire Industries Limited boasts a market capitalisation of Rs 4,007.8 crore post-equity share issuance, equating to a market cap-to-sales ratio of 1.62 times its FY24 earnings.
The company and its subsidiary, Bansal Steel & Power Limited, offer an extensive portfolio of steel wire products, totaling over 3,000 SKUs across high carbon steel, mild steel (low carbon), and stainless-steel wires. Bansal Wire Industries Limited itself offers approximately 2,000 SKUs, while its subsidiary contributes around 1,500 SKUs, Anand Rathi highlighted in a note.
Given these factors, analysts at Anand Rathi have recommended a “Subscribe – Long Term” rating for the IPO, reflecting confidence in the company’s strategic positioning and growth prospects in the steel wire manufacturing sector.
First Published: Jul 02 2024 | 2:44 PM IST
