Stainless Steel Giant to Raise ₹745 Crore: Can You Get Your Share of the Profit?

Bansal Wire is preparing for an IPO scheduled from July 3 to July 5, 2024, aiming to raise approximately ₹745 crores. This includes a fresh issue of shares along with an offer for sale of up to 29,101,562 equity shares.

The company is a significant player in stainless steel wire manufacturing in India, holding the largest market share in volume among stainless steel wire manufacturers and the second largest in overall steel wire production.

Established in 1985, Bansal Wire has built a strong reputation over 38 years, serving diverse sectors such as automotive, engineering, infrastructure, consumer durables, and agriculture.

Bansal Wire’s position in the steel wire manufacturing industry is bolstered by several key factors:

1. They offer the widest range of products among Indian steel wire manufacturers, with over 3,000 SKUs spanning sizes from 0.04 mm to 15.65 mm.

2. They have cultivated a diversified customer base of more than 5,000 clients across various sectors, supporting sustained growth.

3. Their business model is structured to mitigate risks, with no single customer contributing more than 5% to sales and no sector accounting for more than 25%

4. Operating on a “Cost Plus model” helps shield them from commodity price fluctuations.

5. The promoters bring a legacy of experience since 1938, spanning three generations in steel wire manufacturing.

6. Their presence extends across India and globally to over 50 countries through exports.

7. They are expanding with a new facility in Dadri, India, which will be one of Asia’s largest single-location steel wire manufacturing facilities.

Bansal Wire’s operational flexibility enables them to adjust or introduce production lines across different sectors in response to market dynamics.

Their consistent track record of generating operating profits underscores their adeptness in overcoming challenges and sustaining a prosperous business.

They operate in three primary segments: high carbon steel wire, mild steel wire (low carbon steel wire), and stainless steel wire. Additionally, their new facility in Dadri will introduce a specialty wires segment, poised to enhance their market footprint and drive future growth.

Bansal Wire intends to utilize the proceeds from the IPO for the following purposes:

1. Repayment or prepayment of certain outstanding borrowings of the company and its subsidiary.

2. Meeting the company’s working capital requirements.

3. General corporate purposes.

As for IPO reviews from brokerage firms such as Capital Market, Religare Broking, Hem Securities, and Arihant Capital, these are yet to be updated and reviewed.

Here are the details of the Bansal Wire IPO:

– IPO Open: July 3, 2024
– IPO Close: July 5, 2024
– IPO Size: Approximately ₹745 Crores, consisting of 29,101,562 Equity Shares
– Fresh Issue: Approximately ₹745 Crores, comprising 29,101,562 Equity Shares
– Face Value: ₹5 Per Equity Share
– IPO Price Band: ₹243 to ₹256 Per Share
– IPO Listing: BSE & NSE
– Retail Quota: 35%
– QIB Quota: 50%
– NII Quota: 15%
– Discount: Not Applicable

For the Bansal Wire IPO, the market lot details are as follows:

– Retail Investors:
– Minimum Market Lot: 58 shares, requiring ₹14,848 for application.
– Maximum Retail Application: Up to 13 lots, totaling 754 shares or ₹193,024.

– S-HNI (Super High Net-worth Individuals):
– Minimum Market Lot: 14 lots, totaling 812 shares or ₹207,872.

– B-HNI (Big High Net-worth Individuals):
– Minimum Market Lot: 68 lots, totaling 3,944 shares or ₹1,009,664.

Here are the important dates for the Bansal Wire IPO:

– IPO Open Date: July 3, 2024
– IPO Close Date: July 5, 2024
– Basis of Allotment: July 8, 2024
– Refunds: July 9, 2024
– Credit to Demat Account: July 9, 2024
– IPO Listing Date: July 10, 2024

Investors can check the IPO subscription status and IPO allotment status on the respective platforms provided by Bansal Wire.

To apply for the Bansal Wire IPO, you have two main options:

1. ASBA (Application Supported by Blocked Amount):
– Apply through ASBA available in your bank account. Log in to your online banking portal, navigate to the ‘Invest’ section, and select the Bansal Wire IPO. Follow the instructions to apply.

2. Physical IPO Forms:
– Download the IPO application forms from the NSE or BSE websites. Fill out the forms, and submit them physically to your bank or through your broker.

Both methods allow investors to participate in the Bansal Wire IPO, ensuring flexibility based on their preferred mode of application.

Bansal Wire Financials (Cr): Revenue Up, Profit Stable

Stainless Steel Giant to Raise ₹745 Crore

Here are the financial figures for Bansal Wire in crores of rupees:

– Year 2021:
– Revenue: ₹1,480.42
– Expenses: ₹1,424.11
– Profit After Tax (PAT): ₹40.47

– Year 2022:
– Revenue: ₹2,205.07
– Expenses: ₹2,126.94
– Profit After Tax (PAT): ₹57.29

– Year 2023:
– Revenue: ₹2,422.57
– Expenses: ₹2,341.02
– Profit After Tax (PAT): ₹59.93

– September 2023 (Half-Yearly):
– Revenue: ₹1,154.03
– Expenses: ₹1,105.62
– Profit After Tax (PAT): ₹39.00

For the Bansal Wire IPO valuation details as of FY2023:

– Earnings Per Share (EPS): ₹4.70 per Equity Share
– Price/Earnings (P/E) Ratio: Not Applicable (N/A)
– Return on Net Worth (RoNW): 21.21%
– Net Asset Value (NAV): ₹22.17 per Equity Share

Bansal Wire IPO: July 3rd, ₹745 Cr, BSE & NSE

Here are the key details about the Bansal Wire IPO:

– IPO Details:
– Bansal Wire is conducting a main-board IPO to raise ₹745 Crores.
– The price band for the IPO is ₹243 to ₹256 per equity share.
– The IPO will be listed on both BSE and NSE.

– Opening Date:
– The IPO opens on July 3, 2024, for QIBs, NIIs, and Retail Investors.

– Investor Allocation:
– QIB portion: 50%
– NII portion: 15%
– Retail portion: 35%

– How to Apply:
– Investors can apply for the Bansal Wire IPO via ASBA online through their bank accounts or UPI.
– Alternatively, applications can be made through stock brokers by filling out offline forms.

– Registrar:
– Kfin Technologies Limited handles the IPO registrar services.
– Contact details: Phone – 04067162222, 04079611000; Email – bwil.ipo@kfintech.com; Website – KFinTech IPO Status

– Lead Managers:
– SBI Capital Markets Limited and DAM Capital Advisors Ltd (formerly IDFC Securities Ltd) are the lead managers for the IPO.

– Company Address:
– Bansal Wire Industries Limited
– F-3, Main Road, Shastri Nagar, Delhi-110052
– Email: investorrelations@bansalwire.com
– Website: https://bansalwire.com

– IPO Size: ₹745 crores
– Price Band: ₹243 to ₹256 per share
– Minimum Bid Lot: 58 shares for ₹14,848
– Maximum Bid Lot: 754 shares for ₹193,024
– Allotment Date: July 8, 2024
– Listing Date: July 10, 2024
– Listing Exchanges: BSE and NSE

The IPO will be listed on both BSE and NSE, with allotment finalized on July 8, 2024, and trading commencing on July 10, 2024.