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28 June 2024

Bansal Wire Industries Limited IPO

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 Fiscal 2023, representing 20% and approximately 4% market share. The Company was incorporated in the year 1985 and since incorporation, they have consistently delivered quality products, creating a niche identity in the steel wire industry. With a legacy of 38 years, they take pride in their 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.

Bansal Wire IPO is a book-built issue of Rs 745.00 crores. The issue is entirely a fresh issue of 2.91 crore shares. Bansal Wire IPO opens for subscription on July 3, 2024, and closes on July 5, 2024. The allotment for the Bansal Wire IPO is expected to be finalized on Monday, July 8, 2024. Bansal Wire IPO price band is set at ₹243 to ₹256 per share. The minimum lot size for an application is 58 Shares. SBI Capital Markets Limited and Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd) are the book-running lead managers of the Bansal Wire IPO, while Kfin Technologies Limited is the registrar for the issue.

Bansal Wire IPO Overview

Detail	Description
IPO Date	July 3, 2024 to July 5, 2024
Listing Date	[.]
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
Shareholding pre issue	127,454,390
Shareholding post issue	156,555,952

Bansal Wire IPO Timeline (Tentative Schedule)

Detail	Description
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

Bansal Wire IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	58	₹14,112
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

Bansal Wire IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Net Issue
Retail Shares Offered	Not less than 35% of the Net Issue
NII (HNI) Shares Offered	Not more than 15% of the Net Issue

Bansal Wire IPO Promoter Holding

Share Holding Pre Issue	95.78%
Share Holding Post Issue

Company & Financials

Incorporated in December 1985, Bansal Wire Industries Limited is a stainless steel wire manufacturing company. The company operates in three main segments: high-carbon steel wire, low-carbon steel wire (mild steel wire), and stainless steel wire. The company makes over 3,000 different types of steel wire products, ranging in size from very thin to very thick. They have more than 5,000 customers in different industries, which helps the company grow. To reduce risk, the company doesn't rely too much on one customer or one type of customer. They also use a pricing model that helps them deal with changes in material costs. The company has a presence across India and operates in over 50 countries through product exports, solidifying its position as a key player in the global market. The company exports products to over 50 countries. It has 14 global representatives covering Bangladesh, Brazil, France, Germany, Israel, Italy, Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the United Kingdom, the United States and Vietnam. Our export turnover has grown at a CAGR of 47.15% in the last three fiscal years.

Bansal Wire Industries Limited Financial Information

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	1,264.01	749.05	695.48
Revenue	2,470.89	2,422.57	2,205.07
Profit After Tax	78.80	59.93	57.29
Net Worth	422.37	282.51	223.01
Reserves and Surplus	358.64	273.41	213.91
Total Borrowing	681.14	422.19	413.15
Amount in ₹ Crore

Key Performance Indicator

KPI	Values
ROE	21.19%
ROCE	18.46%
Debt/Equity	1.48
RoNW	18.27%
P/BV	7.72
PAT Margin (%)	3.19

	Pre IPO	Post IPO
EPS (Rs)	6.18	5.03
P/E (x)	41.41	50.86

Objectives of Bansal Wire IPO

The company proposes to use the Net Proceeds from the Issue for the following purposes:

1. Repayment or prepayment of all or a portion of certain outstanding borrowings availed by our Company and our Subsidiary.
2. Funding the working capital requirements of the company.
3. General corporate purposes.

Bansal Wire IPO Review

The company is operating in a highly competitive and fragmented segment of metal wires. It has posted steady growth in its top and bottom lines for the reported periods. Post-IPO, reduced debt will help in improving its bottom lines. Based on FY24 earnings, the issue appears aggressively priced. Well-informed investors may park moderate funds for the long term.

FAQs for Bansal Wire IPO

What is Bansal Wire IPO?

Bansal Wire IPO is a main-board IPO. They are going to raise ₹745 Crores via IPO. The issue is priced at ₹243 to ₹256 per equity share. The IPO is to be listed on BSE & NSE.
When will Bansal Wire IPO?

The IPO is to open on July 3, 2024 for QIB, NII, and Retail Investors.
What is Bansal Wire IPO Investors Portion?

The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
What is Bansal Wire IPO Size?

Bansal Wire's IPO size is ₹745 crores.
What is the Bansal Wire IPO Price Band?

Bansal Wire IPO Price Band is ₹243 to ₹256.
What is the Bansal Wire IPO Minimum and Maximum Lot Size?

The minimum bid is 58 Shares with ₹14,848 amount while the maximum bid is 754 shares with ₹193,024.
What is the Bansal Wire IPO Allotment Date?

Bansal Wire IPO allotment date is July 8, 2024.
What is the Bansal Wire IPO Listing Date?

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