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Bansal Wire IPO opens: Should you subscribe to the ₹745 crore issue?
Net proceeds from the IPO will be used by the company towards repayment of debt, working capital requirements and general corporate purposes.
Updated on: Jul 3, 2024, 10:45:37 IST
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The initial public offering (IPO) of Bansal Wire opened for subscription today (July 3). The issue will close for bidding on July 5 and comprises of a fresh equity sale of 2.19 crore shares. Of the public offer, about 50% is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors. Net proceeds from the IPO will be used by the company towards repayment of debt, working capital requirements and general corporate purposes.
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Here are top things you need to know about Bansal Wire IPO:
- The company is a manufacturer of steel wire products and operates across three segments, catering to a diverse customer base exceeding 5,000.
- The company offers a mix of high-volume and higher-margin products and its financial performance has been positive owing to consistent growth in both revenue and profitability.
- The IPO is priced in the range of ₹243-256 per share. At the upper end, the company plans to raise around ₹745 crore.
- Investors can bid for 58 shares in one lot and in multiples thereafter. Read more: Vraj Iron and Steel shares list at 16% premium over IPO price
- Bansal Wire is the largest stainless steel wire manufacturing company and second largest steel wire manufacturing company by volume in India.
- The company's portfolio caters to a wide range of sectors such as automotive, general engineering, infrastructure, hardware, consumer durables, power and transmission, agriculture and auto replacement. Read more: Britannia appoints former RBI governor Urjit Patel as Independent Director
- In FY23, the company's total income has increased at a CAGR of 28% from ₹1480 crore in FY21 to ₹2,422 crore. EBITDA during the same period grew at a rate of 16% to ₹1,15 crore while PAT increased at 21.6% to ₹59.9 crore.
- SBI Capital Markets and DAM Capital are the book running lead managers to the IPO.
