Bansal Wire Industries Eyes Rs 745 Crore IPO, Files DRHP

20 Jan 2024 , 11:04 AM

Bansal Wire Industries, a prominent steel wire manufacturer, has submitted initial documents to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) aimed at raising Rs 745 crore.

As outlined in the Draft Red Herring Prospectus (DRHP) filed on January 18, this inaugural public offering comprises solely of fresh equity shares, devoid of any offer-for-sale (OFS) component. The raised capital is earmarked for debt repayment, supporting the company’s working capital requirements, and fulfilling general corporate objectives.

Bansal Wire Industries specializes in the manufacturing and export of steel wires, operating across three primary segments: high carbon steel wire, mild steel wire (low carbon steel wire), and stainless steel wire. Additionally, the company is strategically planning to introduce a new specialty wires segment through an upcoming plant in Dadri, aiming to enhance its market presence and facilitate growth in the forthcoming fiscal periods.

The company’s financial performance reflects a noteworthy trajectory, with its total income achieving a Compound Annual Growth Rate (CAGR) of 28 percent, reaching Rs 2,422.56 crore in fiscal 2023 from Rs 1,480.41 crore in fiscal 2021. Furthermore, the Profit After Tax (PAT) witnessed a substantial CAGR of 21.7 percent, escalating to Rs 59.93 crore in fiscal 2023 from Rs 40.46 crore in fiscal 2021.

SBI Capital Markets and DAM Capital Advisors have been appointed as the book running lead managers overseeing the IPO process.