Bansal Wire Industries IPO subscribed 1.76 times on Day 1

4 Jul 2024 , 08:49 AM

Bansal Wire Industries’ ₹745 crore IPO was completely subscribed on its first day of subscription on Wednesday, with high buying demand from both retail and non-institutional investors.

The subscription period began on Wednesday, July 3, and the mainboard IPO, a fresh offering of 2.91 crore shares, will finish on Friday, July 5, 2024.

Bansal Wire Industries, together with its subsidiary, Bansal Steel & Power Limited, provides around 3000 SKUs (stock-keeping units) across three categories: high-carbon steel wire, mild steel wire (low-carbon steel wire), and stainless steel wire.

The company has four manufacturing sites in the National Capital Region (NCR) of India, three in Ghaziabad (UP) and one in Bahadurgarh (Haryana). Its dealer distribution network spans 22 states and six union territories.

The company’s RHP (red herring prospectus) shows a 5.86% CAGR in total income from FY22 to FY24, from ₹2,205.07 crore to ₹2,470.89 crore. EBITDA grew at a CAGR of 14.87% from ₹113.15 crore to ₹149.31 crore, while PAT (profit after tax) increased at a CAGR of 17.28% from ₹57.29 crore to ₹78.80 crore.

The company raised around ₹223 crore in the anchor book round before launching its IPO. According to the exchange filing, the company distributed 87,30,468 equity shares to anchor investors at a price of ₹256 per share.

The net proceeds from the offering will be used to pay down some outstanding debts and fund the company’s working capital requirements. A portion of the proceeds may also be used for general business purposes.

The issuance saw strong buying demand from both retail and non-institutional customers.

At the end of Day 1, the Bansal Wire Industries IPO had received an overall subscription of 1.76 times, with bids for 3,78,34,038 shares versus 2,14,60,906 offered.

The retail section was subscribed 2.47 times, with offers for 2,65,06,754 shares against 1,07,30,453 offered, while the NII segment was subscribed 2.44 times, with bids for 1,12,42,836 shares vs 45,98,766 offered.

The sector earmarked for qualified institutional buyers (QIBs) witnessed 1% subscription, with bids for 84,448 shares against 61,31,687 offered.

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