Introduction
Bansal Wire Industries Limited, a leading player in the steel wire manufacturing sector, is set to launch its Initial Public Offering (IPO) from July 3, 2024, to July 5, 2024. This IPO aims to raise ₹745 crores, offering a fresh issue of 29,101,562 equity shares. Here’s a comprehensive guide to help you understand the details of this IPO and make an informed investment decision.
Company Overview
Bansal Wire Industries Limited is a prominent Indian manufacturer of stainless steel and other types of steel wires, holding significant market share both domestically and internationally. The company operates four manufacturing units in Ghaziabad and Haryana, and exports products to over 50 countries, establishing itself as a global player.
Bansal Wire IPO Details
- Issue Size: 29,101,562 equity shares (₹745 crores)
- Price Band: ₹243 to ₹256 per share
- Face Value: ₹5 per share
- Market Lot: 58 shares
- Listing: BSE and NSE
- Retail Allocation: 35%
- QIB Allocation: 50%
- NII Allocation: 15%
Important Dates
- IPO Opening Date: July 3, 2024
- IPO Closing Date: July 5, 2024
- Allotment Date: July 8, 2024
- Initiation of Refunds: July 9, 2024
- Listing Date: July 10, 2024
Financial Performance
Bansal Wire has demonstrated consistent financial growth:
- Revenue (FY 2024): ₹2,470.88 crore
- Profit After Tax (FY 2024): ₹78.79 crore
- Total Assets (FY 2024): ₹1,264.01 crore
Key Financial Metrics:
- ROE: 21.19%
- ROCE: 18.46%
- Debt/Equity Ratio: 1.48
- PAT Margin: 3.19%
Objects of the Issue
The net proceeds from the IPO will be utilized for:
- Repayment or prepayment of certain borrowings: ₹546.90 crore.
- Funding working capital requirements.
- General corporate purposes.
Strengths and Competitive Advantages
- Established Market Position: Leading steel wire manufacturer with a strong presence in India and over 50 countries.
- Diverse Product Portfolio: Over 3,000 SKUs catering to various industries.
- Experienced Management Team: Promoters with over 38 years of industry experience.
- Strong Financial Performance: Consistent revenue and profit growth, with a robust balance sheet
Risks
- Market Volatility: The performance of the shares post-listing depends on market conditions.
- Industry Competition: The steel wire industry is highly competitive and fragmented.
