Bansal Wire IPO opens: Should you subscribe to the ₹745 crore issue?

Jul 03, 2024 10:45 AM IST

The initial public offering (IPO) of Bansal Wire opened for subscription today (July 3). The issue will close for bidding on July 5 and comprises of a fresh equity sale of 2.19 crore shares. Of the public offer, about 50% is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors. Net proceeds from the IPO will be used by the company towards repayment of debt, working capital requirements and general corporate purposes.

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Here are top things you need to know about Bansal Wire IPO:

1. The company is a manufacturer of steel wire products and operates across three segments, catering to a diverse customer base exceeding 5,000.
2. The company offers a mix of high-volume and higher-margin products and its financial performance has been positive owing to consistent growth in both revenue and profitability.
3. The IPO is priced in the range of ₹243-256 per share. At the upper end, the company plans to raise around ₹745 crore.
4. Investors can bid for 58 shares in one lot and in multiples thereafter. Read more: Vraj Iron and Steel shares list at 16% premium over IPO price
5. Bansal Wire is the largest stainless steel wire manufacturing company and second largest steel wire manufacturing company by volume in India.
6. The company’s portfolio caters to a wide range of sectors such as automotive, general engineering, infrastructure, hardware, consumer durables, power and transmission, agriculture and auto replacement. Read more: Britannia appoints former RBI governor Urjit Patel as Independent Director
7. In FY23, the company’s total income has increased at a CAGR of 28% from ₹1480 crore in FY21 to ₹2,422 crore. EBITDA during the same period grew at a rate of 16% to ₹1,15 crore while PAT increased at 21.6% to ₹59.9 crore.
8. SBI Capital Markets and DAM Capital are the book running lead managers to the IPO.