Bansal Wire Industries IPO to open on July 3rd

28 Jun 2024 , 11:25 AM

Bansal Wire Industries’ ₹745-Crore initial public offering (IPO) will open on July 3rd. The company has set a price band of ₹243-256 per share. Investors can bid for a minimum of 58 shares and in multiples thereafter.

Key Dates and Details

• Anchor Bidding: Starts on June 2
• Issue Opens: July 3
• Issue Closes: July 5
• Allotment Date: July 8
• Refunds Processed: July 9
• Listing Date: July 10

IPO Structure

The IPO consists entirely of a fresh issue of ₹745 Crore. Post-listing, the market capitalization of Bansal Wire Industries is expected to be around ₹3,262 Crore. The company operates four manufacturing facilities in the National Capital Region, India, with three in Ghaziabad (UP) and one in Bahadurgarh (Haryana). It focuses on three main segments: high carbon steel wire, mild steel wire (low carbon steel wire), and stainless steel wire, contributing 22.14%, 8.21%, and 51.92% of revenue from operations in FY24, respectively. Additionally, the company is expanding into specialty wires with a new plant in Dadri.

Utilization of IPO Proceeds

• Debt Repayment: ₹452.7 Crore
• Subsidiary’s Debt Repayment: ₹93.7 Crore
• Working Capital Requirements: ₹60 Crore
• General Corporate Purposes: Remaining proceeds

Allocation

• Qualified Institutional Buyers (QIBs): 50% of the offer size
• Non-Institutional Investors (HNIs): 15% of the offer size
• Retail Investors: 35% of the offer size

SBI Capital Markets and DAM Capital Advisors are the book-running lead managers for this issue.

Bansal Wire Industries, a leading manufacturer of steel wires, operates through four established manufacturing facilities in the National Capital Region of India. The company’s primary product segments include high carbon steel wire, mild steel wire, and stainless steel wire. Additionally, the firm is set to introduce a new segment of specialty wires through its Dadri plant. The proceeds from the IPO will be primarily used for debt repayment and working capital requirements, positioning the company for further growth and expansion.