Bansal Wire IPO Overview :

 

Bansal Wire Industries Limited, established in 1985, is a prominent manufacturer of stainless steel, high carbon, and low carbon steel wires. With a robust global presence spanning over 50 countries, Bansal Wire serves diverse industries and boasts a wide range of over 3,000 specialized wire products. Known for its strategic manufacturing units across India and a strong export network, the company emphasizes innovation and customer-centric solutions in its operations.

Issue Details:

– Issue Size: ₹745.00 crores
– Number of Shares: 2.91 crore shares (entirely fresh issue)
– Price Band: ₹243 to ₹256 per share
– Minimum Lot Size: 58 Shares
– Minimum Investment (Retail): ₹14,848

Issue Type: Book Built Issue IPO
Listing: BSE, NSE
Listing Date: Wednesday, July 10, 2024

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Company Profile

Company Name: Bansal Wire Industries Limited
Founded: December 1985
Business Segments:
– Stainless Steel Wire
– High Carbon Steel Wire
– Low Carbon Steel Wire

Market Presence:

– Operations in over 50 countries
– Exporting products to more than 50 countries
– 14 global representatives

Manufacturing Units:

– Mohan Nagar, Ghaziabad
– Loni Industrial Area, Ghaziabad
– Bahadurgarh, Jhajjar, Haryana

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Financial Performance (as of March 31, 2024)

Key Financials:

– Revenue: ₹2,470.89 crores
– Profit After Tax (PAT): ₹78.80 crores
– Net Worth: ₹422.37 crores
– Reserves and Surplus: ₹358.64 crores
– Total Borrowings: ₹681.14 crores
– Debt/Equity Ratio: 1.48

Financial Ratios:

– Return on Equity (ROE): 21.19%
– Return on Capital Employed (ROCE): 18.46%

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 IPO Timeline :

– Subscription Dates: July 3-5, 2024
– Basis of Allotment: Monday, July 8, 2024
– Refund Initiation: Tuesday, July 9, 2024
– Credit of Shares to Demat Accounts: Tuesday, July 9, 2024
– Listing Date: Wednesday, July 10, 2024
– Cut-off Time for UPI Mandate Confirmation: 5 PM on July 5, 2024

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Use of Proceeds

1. Repayment or Prepayment of Borrowings: To reduce debt obligations.
2. Working Capital Requirements: Funding operational needs.
3. General Corporate Purposes: Other business-related expenses.

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Promoter Holding

Pre-IPO Promoter Holding: 95.78%
**Post-IPO Shareholding:** To be updated post-issue

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Key Performance Indicators (KPIs)

– EPS (Pre-IPO): ₹6.18
– EPS (Post-IPO): ₹5.03
– P/E (Pre-IPO): 41.41
– P/E (Post-IPO): 50.86
– Price-to-Book Value (P/BV): 7.72
– PAT Margin (%): 3.19%

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Reservation for Investors

– QIB: Up to 50% of the Net Issue
– Retail: Not less than 35% of the Net Issue
– NII (HNI): Up to 15% of the Net Issue

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Book Running Lead Managers

– SBI Capital Markets Limited
– Dam Capital Advisors Ltd (formerly IDFC Securities Ltd)

Registrar

Kfin Technologies Limited