Bansal Wire Industries IPO Review

 
Bansal Wire Industries IPO Review

IPO Open Date: July 3, 2024

IPO Close Date: July 5, 2024

IPO Price: ₹243 to ₹256 per share

Lot Size: 58 Shares

Listing: July 10, 2024

Bansal Wire is scheduled to hit the market on July 3, 2024 and close on July 5, 2024. Bansal Wire plans to raise around ₹745.00 Cr through an IPO with a sale of up to 29,101,562 equity shares of ₹5 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.

Bansal Wire Industries Limited, incorporated in December 1985, specializes in manufacturing stainless steel wire products. Operating in three main segments – high carbon steel wire, low carbon steel wire (mild steel wire), and stainless steel wire – the company offers a wide range of over 3,000 different types of steel wire products catering to various industries. With a diverse customer base of more than 5,000 clients, Bansal Wire Industries Limited focuses on mitigating risks by avoiding heavy dependence on any single customer or customer segment. The company's strategic pricing model enables it to navigate fluctuations in material costs effectively.

With a strong presence in India and product exports to over 50 countries, Bansal Wire Industries Limited has established itself as a significant player in the global market. The company's export business is supported by 14 global representatives spread across key markets such as Bangladesh, Brazil, France, Germany, Israel, Italy, Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the United Kingdom, the United States, and Vietnam. Experiencing robust growth, the company's export turnover has seen a compound annual growth rate (CAGR) of 47.15% over the past three fiscal years. Additionally, Bansal Wire Industries Limited operates four manufacturing units located in Mohan Nagar and Loni Industrial Area in Ghaziabad, as well as Bahadurgarh in Jhajjar, Haryana. Since 2021, the company has expanded its sales team to include over 50 experienced professionals covering all regions of India and serving a diverse customer base exceeding 5,000 clients across various sectors.

Bansal Wire Industries


Bansal Wire IPO Details

Bansal Wire IPO opens on July 03, 2024, and closes on July 05, 2024. The Listing date for Bansal Wire IPO is on July 10, 2024. The price band for IPO is ₹243 to ₹256 per share and lot size of 58 Shares.

IPO DateJuly 03, 2024 to July 05, 2024
Listing DateJuly 10, 2024
Price₹243 to ₹256 per share
Lot Size58 Shares
Issue Size₹745.00 Cr
Face Value₹5 per share

Bansal Wire IPO Tentative Timetable

Bansal Wire opening date is July 03, 2024 and close date is July 05, 2024. The IPO allotment date is July 08, 2024. The refund initiation of IPO is on July 09, 2024. The credit of shares in demat account is on July 09, 2024. The listing date is on July 10, 2024.

EventDate
IPO OpeningJuly 03, 2024
IPO ClosingJuly 05, 2024
IPO Allotment DateJuly 08, 2024
Refund InitiationJuly 09, 2024
Shares Credit to DematJuly 09, 2024
Lisiting DateJuly 10, 2024

Bansal Wire IPO Lot Size

Lot Size of this IPO is 58 shares. A retail-individual investor can apply for up to 13 lots (754 shares or ₹193,024).

CategoryLotsSharesAmount
Retail(Minimum)158₹14,848
Retail(Maximum)13754₹193,024
S-HNI (Minimum)14812₹207,872
B-HNI (Minimum)683,944₹1,009,664

Bansal Wire IPO Promoter Holding

Pre Issue Share Holding95.78%
Post Issue Share Holding

Bansal Wire IPO Review

Bansal Wire Industries Ltd. (BWIL), along with its subsidiary Bansal Steel & Power Limited, is engaged in manufacturing and marketing a wide range of metal wires under the brand “Bansal.” The company offers over 3,000 SKUs (Stock Keeping Units) across three primary segments: high carbon steel wire, mild steel wire (low carbon steel wire), and stainless steel wire. BWIL's high carbon steel wires, known for their exceptional strength, hardness, and durability, are used in applications such as manufacturing springs, cutting tools, and various industrial components. Mild steel wires, characterized by their ductility, malleability, and weldability, find applications in power transmission, agriculture, poultry, fencing, and construction. Stainless steel wires, made from a corrosion-resistant alloy, are used in consumer durables, hardware, automotive, agriculture, and other general engineering products. Operating from four manufacturing facilities in the National Capital Region, BWIL has established a significant presence across 22 states and six union territories in India, with a robust distribution network and substantial revenue from northern and western states.

BWIL has demonstrated steady growth in both its top and bottom lines over the past few years. The company's total income increased from Rs. 2205.07 crore in FY22 to Rs. 2470.89 crore in FY24, while net profit rose from Rs. 57.29 crore to Rs. 78.80 crore during the same period. Despite the positive growth trends, the company's earnings appear aggressively priced based on FY24 financials. The upcoming IPO aims to raise approximately Rs. 745.00 crore through a fresh equity issue, with a price band of Rs. 243 to Rs. 256 per equity share. The funds will primarily be used for debt repayment, working capital, and general corporate purposes. Post-IPO, BWIL's current paid-up equity capital of Rs. 63.73 crore will increase to Rs. 78.28 crore, with the company seeking a market cap of Rs. 4007.83 crore. The IPO constitutes 18.59% of the post-IPO paid-up equity capital, and the shares will be listed on BSE and NSE. The issue is managed by SBI Capital Markets Ltd. and DAM Capital Advisors Ltd., with KFin Technologies Ltd. acting as the registrar.

BWIL operates in a highly competitive and fragmented segment of the metal wires industry, with the top 10 manufacturers contributing around 22% of overall production, while BWIL accounts for 2%. The company is poised to expand its market presence by adding a new segment of specialty wires through its manufacturing plant in Dadri. This strategic move is expected to drive growth in upcoming fiscal years. BWIL's extensive product range and strong brand reputation, combined with its diversified raw material supply base and significant export turnover, underscore its competitive position. However, the company's aggressive pricing based on its earnings, coupled with the highly competitive nature of the industry, necessitates cautious investment. Investors are advised to consider the long-term potential and strategic initiatives of BWIL while being aware of the aggressive pricing of the IPO. The expected reduction in debt post-IPO is anticipated to improve the company's bottom line, making it a moderate but potentially rewarding investment for well-informed investors seeking long-term growth in the metal wires segment.

Bansal Wire IPO Subscription Status (Bidding Details)

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Bansal Wire IPO Broker Recommendations

  • Capital Market: To be updated soon
  • Anand Rathi: To be updated soon
  • SMC Global: To be updated soon
  • Arihant Capital: To be updated soon

Bansal Wire IPO FAQs

What is Bansal Wire IPO?

Bansal Wire is issuing 29,101,562 equity shares with a face value of ₹5 each, totaling up to ₹745.00 Cr. The shares are being offered at a price of ₹243 to ₹256 each, with a minimum order quantity of 58 shares.

Kfin Technologies Limited is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.

When Bansal Wire IPO will open?

Bansal Wire will open on July 03, 2024 for QIB, NII, and Retail Investors.

When Bansal Wire IPO will end?

Bansal Wire will end on July 05, 2024.

What is Bansal Wire IPO Size?

Bansal Wire IPO size is 745.00 Cr.

What is Bansal Wire IPO Price Band?

Bansal Wire price band is ₹243 to ₹256 per share.

What is the Bansal Wire IPO Allotment Date?

Bansal Wire allotment date is July 08, 2024.

What is the Bansal Wire IPO Listing Date?

Bansal Wire listing date is July 10, 2024. The IPO is to be listed on BSE and NSE.

How to Bansal Wire IPO through Zerodha?

To apply for the IPO “Bansal Wire” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.

How to Apply Bansal Wire IPO through Upstox?

To apply for the IPO “Bansal Wire” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.

How to check Bansal Wire IPO Allotment Status?

For Bansal Wire IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.

What is Bansal Wire IPO GMP?

You can check out here: Bansal Wire IPO GMP

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About Ishika Agarwal

Ishika Agarwal is a seasoned financial writer with a strong background in the stock market and investment sector. Ishika has a passion for analyzing and interpreting complex financial data to provide valuable insights to her readers.

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