Bansal Wire IPO: Should you buy it or wait for next one…
Overview
Bansal Wire Industries Limited is launching its Mainline IPO with a fresh issue worth ₹745.00 Cr. The subscription period runs from July 3, 2024, to July 5, 2024. This IPO offers investors an opportunity to participate in one of India’s leading steel wire manufacturers.
IPO Details
| Details | Information |
|---|---|
| IPO Issue Opening Date | 3rd July 2024 |
| IPO Issue Closing Date | 5th July 2024 |
| IPO Issue Price | ₹243.00-256.00 Per Share |
| Face Value | ₹5 Per Equity Share |
| IPO Issue Size | ₹745.00 Cr |
| Fresh Issue | ₹745.00 Cr |
| IPO Listing At | BSE, NSE |
| Retail Quota | Not less than 35% of the Net Issue |
| IPO Issue Type | Book Build Issue |
| Market Lot | 58 Shares |
| 1 Lot Amount | ₹14848 |
| Min Small HNI Lots (2-10 Lakh) | 812 shares (14 lots) – ₹207872 |
| Min Big HNI Lots (10+ Lakh) | 3944 shares (68 lots) – ₹1009664 |
| GMP | ₹65 (as of 2-Jul-2024) |
| Expected Listing Gain | ₹321 (25.39%) |
Important Dates
| IPO Activity | Date |
|---|---|
| Basis of Allotment Date | 8th Jul 2024 |
| Refunds Initiation | 9th Jul 2024 |
| Credit of Shares to Demat | 9th Jul 2024 |
| IPO Listing Date | 10th Jul 2024 |
Company Background
Bansal Wire Industries Limited, incorporated in December 1985, is a prominent producer of stainless steel wire and steel wire in India. With a production capacity of 72,176 MTPA for stainless steel wire and 206,466 MTPA for steel wire in FY 2023, the company holds a market share of 20% and 4% respectively.
The company boasts a 38-year history of delivering quality products and has a diversified portfolio catering to sectors such as automotive, general engineering, infrastructure, hardware, consumer goods, energy and transmission, agriculture, and automotive aftermarket. Bansal Wire operates under the brand name “BANSAL” and is recognized for its extensive product range across high carbon steel wire, mild steel wire, and stainless steel wire.
Financial Information
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|
| Assets | ₹1,264.01 Cr | ₹749.05 Cr | ₹695.48 Cr |
| Revenue | ₹2,470.89 Cr | ₹2,422.57 Cr | ₹2,205.07 Cr |
| Profit After Tax | ₹78.80 Cr | ₹59.93 Cr | ₹57.29 Cr |
| Net Worth | ₹422.37 Cr | ₹282.51 Cr | ₹223.01 Cr |
| Reserves and Surplus | ₹358.64 Cr | ₹273.41 Cr | ₹213.91 Cr |
| Total Borrowing | ₹681.14 Cr | ₹422.19 Cr | ₹413.15 Cr |
IPO Objectives
The company plans to use the proceeds from the IPO for:
- Repayment or prepayment of certain outstanding borrowings.
- Funding working capital requirements.
- General corporate purposes.
Peer Comparison
| Company | EPS Basic | EPS Diluted | NAV | P/E(x) | RoNW |
|---|---|---|---|---|---|
| Bansal Wire Industries Ltd. | 6.18 | 6.18 | 33.14 | 41.41 | 18.46 |
| Rajratan Global Wire Ltd. | 14.15 | 14.15 | 97.03 | 35.88 | 15.41 |
| DP Wires Ltd. | 23.43 | 23.43 | 145.93 | 19.29 | 17.39 |
| Bedmutha Industries Ltd. | 6.28 | 6.28 | 37.23 | 38.65 | 19.04 |
Contact Information
Company Address: Bansal Wire Industries Limited, F-3, Main Road, Shastri Nagar, Delhi, Delhi-110052, India Website: Bansal Wire Phone: 011-2365 1891 Email: investorrelations@bansalwire.com
Registrar: Kfin Technologies Limited Website: KFintech Phone: 04067162222, 04079611000 Email: bwil.ipo@kfintech.com
Lead Managers:
- SBI Capital Markets Limited
- Dam Capital Advisors Ltd (Formerly IDFC Securities Ltd)
Stay tuned for more details on IPO, including business overview, financial performance to undergroundfinanceinsight.com
Frequently Asked Questions (FAQs) about Bansal Wire IPO
1. What is the opening and closing date for the Bansal Wire IPO?
Answer: The Bansal Wire IPO opens for subscription on July 3, 2024, and closes on July 5, 2024.
2. What is the price band for the Bansal Wire IPO?
Answer: The price band for the Bansal Wire IPO is set at ₹243.00-256.00 per share.
3. How can I apply for the Bansal Wire IPO?
Answer: You can apply for the Bansal Wire IPO through your stockbroker by using the online IPO application platform provided by the exchanges (BSE, NSE) or through your bank’s ASBA (Application Supported by Blocked Amount) facility.
4. What is the minimum lot size and investment required for the Bansal Wire IPO?
Answer: The minimum lot size for the Bansal Wire IPO is 58 shares, and the minimum investment amount is ₹14,848.
5. When will the Bansal Wire IPO shares be listed on the stock exchange?
Answer: The tentative listing date for the Bansal Wire IPO shares on the BSE and NSE is July 10, 2024.
6. What is the Grey Market Premium (GMP) for the Bansal Wire IPO?
Answer: As of July 2, 2024, the Grey Market Premium (GMP) for the Bansal Wire IPO is ₹65 per share, indicating an expected listing gain of approximately ₹321 (25.39%).
7. What are the objectives of the Bansal Wire IPO?
Answer: The objectives of the Bansal Wire IPO are to:
- Repay or prepay certain outstanding borrowings.
- Fund working capital requirements.
- Finance general corporate purposes.
