Bansal Wire IPO Price: ₹243 to ₹256 per share
IPO Date Range: 3 July 2024 - 5 July 2024
Incorporated in December 1985, Bansal Wire Industries Limited is India's leading stainless steel wire manufacturer. The company operates in three main segments: high-carbon steel wire, low-carbon steel wire (mild steel wire), and stainless steel wire. Bansal Wire produces over 3,000 different types of steel wire products, catering to more than 5,000 customers across various industries, which supports the company's growth and diversification.
The company operates four manufacturing units located in Mohan Nagar, Ghaziabad, Loni Industrial Area, Ghaziabad, and Bahadurgarh, Jhajjar, Haryana. With two units in the Loni Industrial Area, Bansal Wire Industries Limited is well-equipped to meet the demands of its diverse product portfolio. In Fiscal 2023, the company produced 72,176 MTPA of stainless steel wire and 206,466 MTPA of steel wire, representing 20% and approximately 4% market share, respectively, making it the largest stainless steel wire manufacturer and the second-largest steel wire manufacturer by volume in India.
Bansal Wire Industries Limited has a significant presence across India and exports products to over 50 countries, establishing itself as a key player in the global market. The company has 14 global representatives covering regions such as Bangladesh, Brazil, France, Germany, Israel, Italy, Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the United Kingdom, the United States, and Vietnam. The company's export turnover has grown at a CAGR of 47.15% over the last three fiscal years.
Bansal Wire follows a de-risking strategy by ensuring no single customer accounts for more than 5% of its sales, and no sector exceeds 25% of its sales, creating a balanced and resilient business model. The company operates on a "Cost Plus model," which helps mitigate the impact of commodity price fluctuations. With a legacy of 38 years, the company continues to expand its market presence by adding a new segment of speciality wires through its upcoming plant in Dadri, which will be one of the largest single-location manufacturing facilities of steel wire in Asia. Bansal Wire's diversified product mix and flexible plant capabilities allow it to adapt to industry demands, ensuring sustained growth and profitability.
| IPO Date | July 3, 2024 to July 5, 2024 |
| Listing Date | Wednesday, July 10, 2024 |
| Face Value | ₹5 per share |
| Price Band | ₹243 to ₹256 per share |
| Lot Size | 58 Shares |
| Total Issue Size | 29,101,562 shares (aggregating up to ₹745.00 Cr) |
| Fresh Issue | 29,101,562 shares (aggregating up to ₹745.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 127,454,390 |
| Share holding post issue | 156,555,952 |
Bidders have the opportunity to bid for a minimum of 58 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 58 | ₹14,848 |
| Retail (Max) | 13 | 754 | ₹193,024 |
| S-HNI (Min) | 14 | 812 | ₹207,872 |
| S-HNI (Max) | 67 | 3,886 | ₹994,816 |
| B-HNI (Min) | 68 | 3,944 | ₹1,009,664 |
| QIB Shares Offered | Not more than 50% of the Net offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| IPO Open Date | Wednesday, July 3, 2024 |
| IPO Close Date | Friday, July 5 2024 |
| Basis of Allotment | Monday, July 8, 2024 |
| Initiation of Refunds | Tuesday, July 9, 2024 |
| Credit of Shares to Demat | Tuesday, July 9, 2024 |
| Listing Date | Wednesday, July 10, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 5, 2024 |
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Bansal Wire Industries Limited experienced a 1.99% increase in revenue and a 31.48% rise in profit after tax (PAT) between the financial years ending March 31, 2024, and March 31, 2023.
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 |
|---|---|---|---|
| Assets | 695.48 | 749.05 | 1264.01 |
| Revenue | 2205.07 | 2422.57 | 2470.89 |
| Profit After Tax | 57.29 | 59.93 | 78.80 |
| Net Worth | 223.01 | 282.51 | 422.37 |
| Reserves & Surplus | 213.91 | 273.41 | 358.64 |
| Total Borrowing | 413.15 | 422.19 | 681.14 |
| KPI | Values |
|---|---|
| Market Cap | Rs 4,007.83 Cr |
| EPS | Rs 6.18 |
| P/E (x) | 41.41 |
| ROE | 21.19% |
| ROCE | 18.46% |
| Debt/ Equity | 1.48 |
| RoNW | 18.27% |
| P/BV | 7.72 |
| PAT Margin | 3.19% |
The company intends to use the net proceeds from the issue for the following purposes:
Prospectus: Official documents that provide detailed information about the IPO and the company. Bansal Wire Industries Limited DRHP and Bansal Wire Industries Limited RHP.
An IPO, or Initial Public Offering, is the process by which a private company offers its shares to the public for the first time to raise capital.
Companies go public to raise capital for expansion, reduce debt, or for other corporate purposes. It also provides liquidity to existing shareholders.
The price range for the"Bansal Wire Industries Limited" IPO is ₹243 to ₹256 per share.
The "Bansal Wire Industries Limited" IPO is expected to be listed on Wednesday, 10 July 2024.
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