Bansal Wire Industries Limited: An Overview and Company Insight
Bansal Wire Industries Limited stands as a premier name in India’s steel wire manufacturing industry, specializing in stainless steel wire and holding the position of the second-largest steel wire manufacturer by volume. Founded in 1985, the company has established a strong legacy over its 38 years of operation, serving diverse sectors such as automotive, general engineering, infrastructure, hardware, consumer durables, power and transmission, agriculture, and the auto replacement market.
Bansal Wire Industries produces over 3,000 different stock-keeping units (SKUs) ranging from 0.04 mm to 15.65 mm in size, catering to a diversified customer base of over 5,000. With an extensive product range and a strategic focus on quality and customer satisfaction, the company has captured significant market shares, including 20% in stainless steel wire and approximately 4% in steel wire as per the CRISIL Report.
Bansal Wire IPO Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Bansal Wire IPO is a crucial indicator of the market’s sentiment towards the IPO before its official listing. The GMP reflects the difference between the IPO price and the price at which the shares are traded in the grey market.
Grey Market Premium Details:
| GMP Date | IPO Price (₹) | GMP (₹) | Sub2 Sauda Rate | Estimated Listing Price (₹) | Last Updated |
|---|---|---|---|---|---|
| 02-07-2024 | 256.00 | ₹65 Todays Movement – GMP No Change | 2900/36400 | ₹321 (23.44%) | 2-Jul-2024 11:54 |
| 01-07-2024 | 256.00 | ₹60 Todays Movement – GMP No Change | 2600/36400 | ₹316 (23.44%) | 30-Jun-2024 19:28 |
| 29-06-2024 | 256.00 | ₹60 Todays Movement – GMP Up | 2600/36400 | ₹316 (23.44%) | 29-Jun-2024 21:32 |
The positive GMP suggests a strong demand for Bansal Wire IPO shares in the grey market, indicating a favorable outlook among investors.
Pricing Details and Lot Size – Bansal Wire IPO
The pricing details and lot size for the Bansal Wire IPO are designed to make the investment accessible to a wide range of investors.
IPO Price Band: ₹243 to ₹256 per share
Lot Size: 58 shares
Investment Details:
| Category | Minimum Lot | Shares | Amount (₹) |
|---|---|---|---|
| Retail | 1 | 58 | 14,848 |
| HNI (S-HNI) | 14 | 812 | 207,872 |
| HNI (B-HNI) | 68 | 3,944 | 1,009,664 |
IPO Timelines at a Glance – Bansal Wire IPO
| Event | Date |
|---|---|
| IPO Open Date | July 3, 2024 |
| IPO Close Date | July 5, 2024 |
| Basis of Allotment | July 8, 2024 |
| Initiation of Refunds | July 9, 2024 |
| Credit of Shares to Demat | July 9, 2024 |
| Listing Date | July 10, 2024 |
Book-running Lead Managers and Registrar – Bansal Wire IPO
The Bansal Wire IPO is managed by a team of experienced book-running lead managers and registrars to ensure a smooth and efficient IPO process. The lead managers play a critical role in the pricing, allotment, and overall management of the IPO.
Offer for Sale and IPO Size Breakdown – Bansal Wire IPO
The Bansal Wire IPO comprises a total issue size of 29,101,562 shares, aggregating up to ₹745.00 Crore. The breakdown includes both fresh issues and offers for sale, providing a comprehensive investment opportunity for various types of investors.
Utilisation of Fresh Issuance and Technological Advancements – Bansal Wire IPO
The net proceeds from the Bansal Wire IPO will be utilized for the following purposes:
- Reduction of existing debt and associated costs amounting to ₹5,463.91 million.
- Meeting the company’s future working capital needs, allocating ₹600 million.
- General corporate activities, including business development and strategic initiatives.
IPO Financial Information
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|
| Assets (₹ Crore) | 1,264.01 | 749.05 | 695.48 |
| Revenue (₹ Crore) | 2,470.89 | 2,422.57 | 2,205.07 |
| Profit After Tax (₹ Crore) | 78.80 | 59.93 | 57.29 |
| Net Worth (₹ Crore) | 422.37 | 282.51 | 223.01 |
| Reserves and Surplus (₹ Crore) | 358.64 | 273.41 | 213.91 |
| Total Borrowing (₹ Crore) | 681.14 | 422.19 | 413.15 |
Conclusion
The Bansal Wire IPO presents a promising investment opportunity in the rapidly growing steel wire manufacturing industry. With a strong market presence, robust financial performance, and strategic utilization of IPO proceeds, Bansal Wire Industries is well-positioned for sustained growth. Investors should consider the company’s market leadership, diverse product portfolio, and strategic expansion plans when evaluating this IPO.
Invest wisely and stay informed about the latest trends. Ready to invest? Open your Demat account with TradeSmart now and take advantage of this opportunity!
Frequently Asked Questions – Bansal Wire IPO
What is the Bansal Wire IPO?
The Bansal Wire IPO is an initial public offering of shares by Bansal Wire Industries Limited, aiming to raise capital for debt reduction, working capital needs, and general corporate purposes.
What is the Bansal Wire IPO GMP?
The Grey Market Premium (GMP) for Bansal Wire IPO is currently around ₹55, indicating strong investor demand and positive market sentiment.
How can I apply for the Bansal Wire IPO?
Investors can apply for the Bansal Wire IPO through their demat account using the ASBA facility or via UPI for retail investors.
What is the price band for Bansal Wire IPO?
The price band for the Bansal Wire IPO is set between ₹243 to ₹256 per share.
What is the lot size for Bansal Wire IPO?
The lot size for the Bansal Wire IPO is 58 shares.
When will the Bansal Wire IPO open and close?
The Bansal Wire IPO will open on July 3, 2024, and close on July 5, 2024.
What is the use of the funds raised from the Bansal Wire IPO?
The funds will be used for debt reduction, meeting future working capital needs, and general corporate purposes.
When will the shares of Bansal Wire IPO be listed?
The shares of Bansal Wire IPO are expected to be listed on July 10, 2024.
