Bansal Wire Industries IPO opens today

3 Jul 2024 , 12:25 PM

The initial public offering (IPO) of Bansal Wire Industries opens for subscription today July 3, 2024. The IPO is valued at ₹745 Crore and consists of a fresh issue of 2.91 Crore shares. The subscription period will close on Friday, July 5, 2024.

At the time of writing on July 3, 2024 at 11:46 am, Bansal Wire Industries IPO shows a overall subscription of 0.62 times. The RII is subscribed 1.00 time, and NII is subscribed 0.58 times.

Bansal Wire Industries initial public offering’s price band for the issue is set between ₹243 and ₹256 per share. The minimum lot size for investors is 58 shares, requiring a minimum investment of ₹14,848 for retail investors. At least 35% of the IPO shares are reserved for retail investors. 15% of the shares are allocated for non-institutional investors (NII), while 50% are reserved for qualified institutional buyers (QIB).

Bansal Wire Industries and its subsidiary Bansal Steel & Power Limited offer more than 3000 stock-keeping units (SKUs) across three primary categories: high-carbon steel wire, mild steel wire (low-carbon steel wire), and stainless steel wire.

The company operates four manufacturing facilities in India’s National Capital Region (NCR): three in Ghaziabad, Uttar Pradesh, and one in Bahadurgarh, Haryana. Bansal Wire Industries has an extensive dealer distribution network spanning 22 states and six union territories.

According to the company’s red herring prospectus (RHP), its total income grew at a compound annual growth rate (CAGR) of 5.86% from ₹2,205.07 Crore in FY22 to ₹2,470.89 Crore in FY24.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased at a CAGR of 14.87%, rising from ₹113.15 Crore to ₹149.31 Crore during the same period. Profit after tax (PAT) grew at a CAGR of 17.28%, from ₹57.29 Crore to ₹78.80 Crore.

The company plans to use the net proceeds from the IPO to repay certain outstanding borrowings and fund its working capital requirements. A portion of the funds will also be allocated for general corporate purposes.