Bansal Wire IPO opens Wednesday: Here are 10 things to know about the public offer

The initial public offer (IPO) of Bansal Wire will open for subscription on July 3. The issue closes on July 5. Through the public offer, the company plans to raise around Rs 745 crore. Here are 10 things to know about the Bansal Wire IPO before subscribing to the issue.

1) What is the business overview of Bansal Wire?

Bansal Wire is the largest stainless steel wire manufacturing company and the second largest steel wire manufacturing company by volume in India with a production of 72,176 MTPA and 206,466 MTPA, respectively, in FY23. The company has a diversified portfolio, catering to a wide range of sectors such as automotive, general engineering, infrastructure, hardware, consumer durables, power and transmission, agriculture, and auto replacement.

2) What is the industry overview of Bansal Wire?
India has been the second-largest global steel producer since the calendar year 2018. The steel wire industry has witnessed significant growth at a compounded annual growth rate of 6.90% over Fiscals 2019-23, growing to 5.6 million tonnes, primarily owing to increasing infrastructure development activities across the country and growing production in the automobile industry

3) What is the size of Bansal Wire IPO?
The issue is completely a fresh equity sale of 2.91 crore shares with no offer for sale (OFS) component.

4) What is the price band for Bansal Wire IPO?
The company has fixed a price band of Rs 243-256 per share and at the upper end, the company plans to raise around Rs 745 crore. Investors can bid for 58 shares in one lot and multiples thereafter.

5) What is the structure of Bansal Wire IPO?
The public offer is being made through the book-building process, wherein about 50% of the issue is reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.

6) How is the financial performance of Bansal Wire?
The company’s total income has increased at a CAGR of 28% from Rs 1,480 crore in FY21 to Rs 2,422 crore in FY23. EBITDA during the same period grew at a rate of 16% to Rs 115 crore, while PAT has increased at 21.6% to Rs 59.9 crore.

In the six months ended September 2023, revenue stood at Rs 1,154 crore, while profit came in at Rs 38.9 crore.

7) What are the objectives of Bansal Wire IPO?
The company proposes to use the funds from the IPO to repay some of its debt, working capital requirements, and other general corporate purposes.

8) What is the current GMP of Bansal Wire?
According to market analysts, the current GMP of Bansal Wire is Rs 65 in the unlisted market.

9) Who are the book-running lead managers for Bansal Wire IPO?
SBI Capital Markets and DAM Capital are acting as the book-running lead managers for the IPO.

10) When is the share allotment and listing date of Bansal Wire IPO?
The share allotment for the IPO will likely be finalised on July 8 and the company is anticipated to list on stock exchanges on July 10.