Bansal Wire Industries IPO: Check Latest GMP, Allotment Status And Listing Date

Bansal Wire Industries Limited is a leading company in India that specializes in the manufacture of stainless steel wire and is now geared to conducting its initial public offering (IPO). Bansal Wire IPO is about the improvement of its financial operations and increasing the products production capacity owing to the high-quality and innovative products.

Bansal Wire Industries Ltd. is indulged in the manufacture of different types of wire products including stainless steel wire, spring wire & welding wire. Over the past forty years, they are now among the leading companies that aim to offer their customers satisfactory products. The products offered are diverse and cater for different industries including the automotive industry, constructions and manufacturing. It functions across three key divisions: The types of wires used in the construction of these fences include high carbon steel wire, low carbon steel wire or mild steel wire, and stainless steel wire.

The company runs from its cutting-edge manufacturing plants strategically positioned in North India. The advanced machinery and technology in these facilities allow Bansal Wire to uphold high production standards and fulfill the increasing demand for its products. 

Company Overview

The company is India's biggest producer of stainless steel wire and the second largest producer of steel wire in terms of volume, with production in Fiscal year 2023 at 72,176 MTPA and 206,466 MTPA, respectively, making up around 20% and about 4% of the market share, respectively. The company uses a "Cost Plus model" to remain unaffected by changes in commodity prices.

The company produces more than 3,000 stock-keeping units ("SKUs"), the largest number among all steel wire manufacturers in India, ranging in size from 0.04 mm to 15.65 mm. Having a wide range of over 5,000 clients across different industries, the company's strong network has fueled the continuous expansion.

Product Portfolio

Bansal Wire's comprehensive product portfolio includes: 

Stainless Steel Wires: These are found useful in automotive and in the construction of bridges, fuel stations, and other establishments that require the use of metals with high resistance to corrosion. 

Spring Wires: Vital in producing as many kinds of springs that are used in the manufacture of machines and vehicles. 

Welding Wires: Especially important for the welding industry since the material is strong and is highly reliable. 

Bansal Wire Industries Limited IPO Issue Details

Bansal Wire Industries Ltd. is getting ready to elevate price range through its upcoming IPO to assist its enlargement and reinforce its marketplace position.

The IPO will open on July 3, 2024, and close on July 6, 2024. Shares will be allocated on July 10, 2024, and trading will start on July 14, 2024. The range of price band according to share in the IPO tiers from ₹243 to ₹256, providing an affordable investment opportunity.

As of now, the Grey Market Premium (GMP) for Bansal Wire's IPO is ₹65. This top rate can range, so traders are advised to display it closely closer to the IPO date.

Key Details of the IPO

Issue Size: The IPO is a book-built issue of ₹745 crore, that includes fresh shares (2.91 crore shares).

Price Band: The price band for  Bansal Wire IPO is set at ₹243 to ₹256 per share.

IPO Opening Date: July 3, 2024

IPO Closing Date: July 5, 2024

IPO Allotment Date: July 8, 2024

IPO Listing Date: July 10, 2024

The face value of each bansal wire industries share is about ₹5, with the minimum lot size of 58 shares. The minimum amount of investment required for  retail investors is ₹14,848. 

Allotment Status of the IPO

The allotment for the Bansal Wire Industries Limited IPO is expected to be completed on Monday, July 8, 2024. The allotted shares will be credited to buyers' demat accounts by way of July 9, 2024.

Fresh Issue    ₹745 Cr

Total IPO Size  ₹745 Cr

Reservation for Investors

QIBs: Not more than 50% of the net issue.

Retail Investors: For retail investors it is set as not less than 35% of the net issue.

NII (HNI):  For non residents and high net worth individuals, it is not more than 15% of the net issue.

Shareholding Pre and Post Issue

Shareholding Pre-Issue: 95.78%

Shareholding Post-Issue: The post issue shareholding would be known after the IPO.

Objectives of the IPO

Expansion of Manufacturing Facilities: A big part of the funds will be used to extend Bansal Wire's manufacturing centers to satisfy the growing call for for his or her twine products.

Debt Repayment: Part of the money raised will pass toward repaying existing debts, so as to help lessen the employer's monetary burden.

Working Capital Requirements: The IPO proceeds can also be used to cowl the enterprise's working capital wishes, making sure easy every day operations and better stock control.

General Corporate Purposes: Any final finances could be used for standard company functions, consisting of feasible acquisitions and technological improvements.

Financial Performance

The revenue of Bansal Wire Industries Limited grew 1.99% and its profit after tax (PAT) rose by 31.48% as of FY23-24.  The market capitalization of this company is Rs 4007. 

Financials	FY23 (in ₹ Crore)	FY24 (in ₹ Crore)
Revenue	2,422	2,470
PAT	59	78
Net Income	282	422
Total Borrowings	422	681

Competitive Advantage

Bansal Wire has well-established manufacturing facilities, strict quality control norms and a robust distribution network which make it stand apart. The operational efficiency of the company has been improved because not only does it have a strategic location: near to raw material sources. Moreover, this kind of innovation and sustainability have made Bansal Wire a distinct player in an over-competitive arena like wire manufacture.

Risks and Considerations

Bansal Wire Industries IPO demonstrates a promising opportunity for investors, However,  investors should be aware of the threats. The wire industry is affected by fluctuations in raw material prices and market demand, which can influence earnings and profitability outcomes.

Bansal Wire Industries Ltd Share Price

The face value of each Bansal Wire Industries share is ₹5.  Bansal Wire Industries share price is ₹170 per share. Given strong market presence and growth plans of the company, Analysts are expecting a positive price outlook on Bansal Wire Industries Ltd. Share driven by an increase in production capacity leading to increased profitability margins coupled with wider market reach.

Conclusion

The Bansal Wire Industries Ltd IPO is a wonderful option for those investors who wish to benefit from the expansion of the wire and steel industry. Backed by strong financials, an ambitious growth trajectory and a sector riding high on good sentiments, Bansal Wire Limited carries all the right metrics for successful maiden mainboard public issue as well as delivering promising future performance. Investors are advised to stay updated with the latest GMP, allotment status, and listing date to make informed investment decisions.