Bansal Wire Industries Embarks on IPO Journey
IPO News: In a significant move within the stainless-steel wire manufacturing sector, Bansal Wire Industries IPO was initiated this Wednesday. The company aims to garner ₹745 crore from the primary market, and investor enthusiasm was palpable as the Bansal Wire Industries IPO was fully subscribed on the very first day.
About the Company
Established in December 1985, Bansal Wire Industries Limited has carved a niche for itself as a prominent manufacturer of stainless steel wire in India. The company operates across three main segments:
High Carbon Steel Wire: Catering to the demand for stronger and more durable wires.
Low Carbon Steel Wire: Offering versatility for a range of applications.
Stainless Steel Wire: Known for its corrosion resistance and strength.
With a product portfolio exceeding 3,000 SKUs, Bansal Wire Industries addresses a diverse market, including high-carbon steel, mild steel, and stainless-steel wires. The company’s commitment to quality and customer satisfaction has enabled it to establish a robust presence in the industry. It exports to over 50 countries and is expanding its capacity with a new facility.
Bansal Wire Industries IPO Dates
Subscription Window: The subscription period commenced on July 3, Wednesday, and is slated to conclude on July 5, Friday.
Allotment and Listing: The allotment of shares is anticipated to be finalized by July 8, with the listing date set for July 10. The shares will make their debut on both BSE and NSE.
Pricing and Lot Size: The IPO is priced in the range of ₹243 to ₹256 per share, with an IPO lot size of 58 shares.
Bansal Wire Industries Pre-IPO Funding
Before the Bansal Wire Industries IPO opening, the company secured over ₹223 crore from anchor investors on July 2. A total of 87,30,468 equity shares were allocated to these investors at the upper end of the price band, ₹256 per share.
Bansal Wire Industries IPO Management
SBI Capital Markets and Dam Capital Advisors Ltd have taken the helm as the book-running lead managers, while Kfin Technologies has been appointed as the IPO registrar.
Bansal Wire Industries Investor Considerations
Potential investors are advised to thoroughly assess the company’s business model, financial health, and associated risks. The Red-Herring Prospectus (RHP) outlines 10 key risks that warrant careful consideration.
Bansal Wire Industries IPO Market Analysts’ Take
The sentiment among analysts is optimistic regarding the Bansal Wire IPO. Anand Rathi, a brokerage firm, recommends a “Subscribe – Long Term” stance, citing the company’s P/E ratio of 50.8 based on FY24 earnings and a market capitalization of ₹40,078.3 million post-IPO. The firm highlights the extensive product range of over 3,000 SKUs offered by the company and its subsidiary, Bansal Steel & Power Limited.
Conversely, Swastika Investment Ltd suggests that only investors with a high-risk appetite should consider subscribing, given the potential risks alongside the company’s strengths.
Bansal Wire Industries GMP
As per market analysts, the grey market premium (GMP) for Bansal Wire IPO stands at ₹60 per share today. This translates to the shares trading at ₹316 each in the grey market, marking a 23.44% premium over the IPO price of ₹256 per share.
Investors are keenly watching as Bansal Wire Industries takes a pivotal step towards expanding its financial horizons and reinforcing its position in the industry. The IPO’s outcome is eagerly awaited by both the company and its prospective shareholders.
