Bansal Wire Industries End At 37% Premium Over IPO Price
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.
Shares of Bansal Wire Industries Ltd. closed on the National Stock Exchange on Wednesday at Rs 350.05 apiece, a premium of 36.7% over its issue price of Rs 256. On the BSE, the stock ended at Rs 350.15 per share, a premium of 36.7%.
The initial public offer for the steel wire manufacturer has been subscribed 59.57 times on its final day of subscription. The Rs 745-crore IPO consisted of a fresh issue of 2.91 crore shares with no offer-for-sale component.
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 452.7 crore and Rs 93.7 crore respectively.
Business
Bansal Wire Industries 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.
