Bansal Wire Industries Limited, the largest stainless steel wire manufacturer in India, is gearing up for its Initial Public Offering (IPO) scheduled from July 3, 2024, to July 5, 2024. This IPO aims to raise approximately ₹745 crores through a fresh issue of equity shares, alongside an offer for sale of up to 29,101,562 shares. With a face value of ₹5 per share and a price band set between ₹243 to ₹256 per share, Bansal Wire IPO presents an opportunity for investors to participate in one of India’s leading steel wire manufacturers.
Key Details of Bansal Wire IPO
Issue Details:
- Issue Dates: July 3, 2024, to July 5, 2024
- Price Band: ₹243 to ₹256 per share
- Total Issue Size: ₹745 crores (29,101,562 equity shares)
- Fresh Issue: ₹745 crores (29,101,562 equity shares)
- Face Value: ₹5 per equity share
- Listing on: BSE & NSE
- Retail Quota: 35%
- QIB Quota: 50%
- NII Quota: 15%
Why Invest in Bansal Wire IPO?
Industry Position: Bansal Wire stands as India’s largest stainless steel wire manufacturer, producing 72,176 MTPA of high carbon steel wire and 206,466 MTPA of mild steel wire in Fiscal 2023. This positions them with significant market shares of approximately 20% and 4%, respectively, highlighting their dominance in the industry (Source: CRISIL Report).
Company Background: Established in 1985, Bansal Wire has built a reputation for quality and innovation in steel wire manufacturing. They boast a diverse portfolio serving sectors such as automotive, infrastructure, consumer durables, and more. The company’s robust customer base of over 5,000 clients across 50 countries underscores its global reach and market resilience.
Operational Strengths:
- Manufactures over 3,000 SKUs, ranging from 0.04 mm to 15.65 mm, offering the widest range in the industry.
- Diversified revenue streams with no single customer contributing more than 5% of sales and no sector exceeding 25% of revenue.
- Operates on a stable “Cost Plus” model to mitigate commodity price fluctuations.
- Plans to expand with a state-of-the-art facility in Dadri, India, aimed at boosting production capacities and adding specialty wire segments.
Objectives of the Issue Of Bansal Wire IPO
The proceeds from the IPO will primarily be used for:
- Repayment or prepayment of outstanding borrowings.
- Funding working capital requirements.
- General corporate purposes to support future growth initiatives.
Investment Considerations For Bansal Wire IPO
Financial Performance: Bansal Wire has demonstrated consistent growth, as evidenced by its financial reports:
- FY2023 Revenue: ₹2422.57 crores
- FY2023 PAT: ₹59.93 crores
- Strong track record of profitability and operational efficiency.
Market Outlook: With the new Dadri facility and expanded capabilities, Bansal Wire is poised to capitalize on growing domestic and international demand for steel wire products. This strategic expansion aligns with their commitment to innovation and market leadership.
How to Apply for Bansal Wire IPO?
Market Lot: The minimum market lot for Bansal Wire IPO is 58 shares, requiring an application amount of ₹14,848. Retail investors can apply for up to 13 lots (754 shares or ₹193,024).
Application Process: Investors can apply via ASBA (Application Supported by Blocked Amount) through their bank’s online portal. Alternatively, IPO forms can be downloaded from NSE or BSE websites and submitted through designated banks or brokers.
Conclusion
Bansal Wire IPO presents an attractive opportunity for investors seeking exposure to India’s robust steel manufacturing sector. With a strong market position, diversified product portfolio, and strategic expansion plans, Bansal Wire is well-positioned for sustained growth in the coming years.
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By investing in Bansal Wire IPO, you align yourself with a leader in steel wire manufacturing, poised for dynamic growth and market leadership.
