Bansal Wire Makes Strong Debut on Stock Exchanges

10 Jul 2024 , 10:02 AM

Bansal Wire Industries made a notable entry into the stock market with its shares listing at ₹356 on the NSE, marking a 39.06% premium over the issue price of ₹256. On the BSE, the shares debuted at ₹352, reflecting a 37.52% increase.

The company’s initial public offering (IPO) saw impressive demand, being subscribed 59.57 times. This strong investor confidence is evident from the substantial premium at which the shares were listed. Despite the issue price being set at ₹256 per share, the stock was anticipated to debut at a premium of approximately 30%, with estimates suggesting a listing price around ₹330-340 per share.

Bansal Wire Industries plans to use the funds raised from the IPO for various purposes, including:

• Repayment of debt
• Working capital requirements
• General corporate purposes

Incorporated in 1985, Bansal Wire Industries is a key player in the stainless steel wire manufacturing sector. Along with its subsidiary, Bansal Steel & Power Ltd (BSPL), the company operates across three primary segments:

• High carbon steel wire
• Mild steel wire
• Stainless steel wire

Bansal Wire has strategically diversified its product portfolio and customer base to mitigate revenue risks and effectively serve various sectors. Major end-user industries include:

• Automotive
• Construction
• Power
• Agriculture

The demand for wires is primarily driven by infrastructure development.

SBI Capital Markets and DAM Capital served as the book-running lead managers for the IPO.