Bansal Wire IPO Oversubscribed 59 Times on Strong Demand

5 Jul 2024 , 04:11 PM

Bansal Wire Industries, a manufacturer of industrial steel wires, saw high investor interest on July 5, the penultimate day of bidding, with non-institutional investors (NIIs) leading the charge.

The company’s ₹745-Crore public offering got bids for more than 67 Crore equity shares, outnumbering the offer size of 2.14 Crore equity shares by 59.27 times.

Qualified institutional buyers (QIBs) led the charge, purchasing more than 146 times their allocated amount. Non-institutional investors followed suit, bidding 51.32 times their quota, while retail investors subscribed at 13.07 times their reserved allotment.

Prior to the public offering, Bansal Wire raised ₹223.5 Crore from anchor investors such as SBI Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Mutual Fund, Eastspring Investments, Optimix Wholesale Global Emerging Markets Share Trust, HSBC Mutual Fund, and Edelweiss Trusteeship.

Motilal Oswal Mutual Fund, Carmignac Portfolio, Tata Mutual Fund, DSP India, Malabar Midcap Fund, and Think India Opportunities Master Fund all made investments through the anchor book.

The IPO is a fresh offering, which means that all revenues (minus IPO expenditures) will go directly to the company.

The net fresh issue proceeds of ₹546.4 Crore would be used to repay the firm and its subsidiary’s debts, with ₹60 Crore set aside for working capital requirements. The remaining amount will be used for general corporate purposes.

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