The company will use the raised proceeds for repayment of outstanding borrowings, working capital requirements, and other general corporate purposes.
The IPO of Bansal Wire got biddings a total of 1.33 times than the offered shares, highly subscribed by retail and NII, on July 03. The company got biddings over 2 times in the retail category while the NII segment was booked 1.52 times.
Bansal Wire opened its bidding for IPO subscription on July 03 to raise Rs 745 crore. The company will close the IPO on July 05. The issue is entirely a fresh issue of 29.1 million shares. Bansal Wire is in the business of manufacturing stainless steel wires. It operates in three main segments: high-carbon steel wire, low-carbon steel wire, and stainless steel wire.
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Price Band
The company has kept the IPO price band in a range of Rs 243 to Rs 256 per equity share.
Allotment and Listing
The company’s share allotment is likely to be finalised on July 08. The stock of Bansal Wire is expected to hit the indices on July 10, according to the tentative schedule.
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Minimum Investment
A retail buyer needs to apply for a minimum of one lot of 58 shares, which aggregates to an amount of Rs 14,848. While, the minimum lot size investment for small NIIs is 14 lots of 812 shares, each, amounting to Rs 2,07,872 and for big NIIs, it is 68 lots of 3,944 shares, each, aggregating to Rs 10,09,664.
BRLMs and Registrar
SBI Capital Markets and Dam Capital Advisors (earlier IDFC Securities) are the book-running lead managers of the Bansal Wire IPO, while Kfin Technologies is working as the registrar for the issue.
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About Bansal Wire
Bansal Wire Industries along with its subsidiary, Bansal Steel & Power, offers over 3000 SKUs (stock-keeping units) in three broad segments, i.e., high carbon steel wire, mild steel wire (low carbon steel wire), and stainless-steel wire, with their company’s offering of approximately 2000 SKUs and their Subsidiary’s offering of 1500 SKUs. Further, there are approximately 500 SKUs that are common in both their company and subsidiary. High-carbon steel wires refer to wires made from high-carbon steel with 0.30% to 1.00% carbon and are known for their exceptional strength, hardness, and durability.
Anand Rathi on Bansal Wire
According to the broking firm Anand Rathi in an IPO note said that the company’s P/E ratio is 50.8 times based on its FY24 earnings, with a market capitalisation of Rs 40,07.83 crore after the issuance of equity shares and a market cap-to-sales ratio of 1.62 times its FY24 earnings. “Looking at these factors we recommend “Subscribe – Long Term” rating to the IPO.”
