Bansal Wire Industries Ltd. plans to raise up to Rs 745 crore through an initial public offering set to open on Wednesday, July 3. The IPO consists of a fresh issue of 2.91 crore shares.
The company has set a price band of Rs 243–256 per share with a face value of Rs 5 each for the issue that closes on Friday, July 5.
The minimum lot size for retail investors is 58 shares, requiring an investment of at least Rs 14,848. For small non-institutional investors, the minimum lot size is 812, amounting to Rs 2.07 lakh. The minimum lot size for big non-institutional investors is 3,944, totaling over Rs 10 lakh, according to the red herring prospectus.
Click on the link to find out the step-by-step guide to check the allotment status of Bansal Wire Industries IPO.
Issue Details
Issue opens: July 3.
Issue closes: July 5.
Issue price: Rs 243-256 per share.
Total issue size: Rs 745 crore.
Bid lot: 58 shares.
Listing: BSE and NSE.
Use Of Proceeds
The company plans to utilise a major part of the IPO proceeds for the repayment or prepayment of all or a portion of certain outstanding borrowings availed by the company. According to the red herring prospectus, the company and its subsidiary plan to use Rs 452.68 crore and Rs 93.71 crore, respectively.
Of the remaining, Rs 60 will be used for the working capital needs of the company, and the remainder will be used for general corporate purposes.
Business
Bansal Wire Industries Limited is a stainless steel wire manufacturing company that operates in three main segments: high carbon steel wire, low-carbon steel wire, and stainless steel wire.
The company manufactures over 3,000 different types of steel wire products and has more than 5,000 customers in different industries like automotive, infrastructure, power and transmission, agriculture, general engineering, hardware, and consumer durables.
The company not only has a presence across India but also operates in over 50 countries through product exports. The company's export turnover has grown at a compounded annual growth rate of 47.15% in the last three fiscal years.
Financials
Between fiscals 2021 and 2023, Bansal Wire's revenue from operations grew at a compound annual growth rate of 27.8%, reaching Rs 2,412.01 crore by fiscal 2023. Over the past three years, the company's net profit has grown at a compound annual growth rate of 20.33%.
Key Risks
Any shortage or supply disruptions in the company's key raw materials could impact the manufacturing process and the business as a whole.
Disruptions, breakdowns, or shutdowns of any manufacturing facilities may have a material impact on the business.
The firm's manufacturing facilities are located on leasehold land and on a rental basis. Any problem renewing existing leases could cause the company to relocate its operations, which could have a material effect on the business and its financial condition.
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