Bansal Wire Industries IPO opens today: Should you subscribe to the ₹745 crore issue?

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Bansal Wire Industries IPO opens today: Should you subscribe to the ₹745 crore issue?

Bansal Wire Industries IPO opens with a fresh issue of 2.91 crore shares to raise ₹745 crore. The company offers over 3,000 SKUs in steel wire segments. It plans to use proceeds for outstanding borrowings and working capital.

July 3rd, 2024 IPO

Introduction

Bansal Wire Industries Limited, a leading stainless steel wire manufacturer, is launching its Initial Public Offering (IPO) to raise ₹745.00 crores. The IPO will be a book-built issue entirely consisting of fresh issue shares. This blog provides detailed insights into the IPO, including its schedule, issue breakdown, company overview, and financial performance.

IPO Schedule

Opens: July 3, 2024
Closes: July 5, 2024
Basis of Allotment: July 8, 2024
Listing Date: July 10, 2024
Price Band: ₹243 to ₹256 per share
Lot Size: 58 Shares

Issue Breakdown

Total Issue Size: 29,101,562 shares (₹745.00 Cr)
Fresh Issue: 29,101,562 shares (₹745.00 Cr)
Offer for Sale: N/A

Promoter Holding

Pre Issue: 95.78%
Post Issue: Not available

Company Overview

Incorporated in December 1985, Bansal Wire Industries Limited operates in three main segments: high carbon steel wire, low carbon steel wire (mild steel wire), and stainless steel wire. The company manufactures over 3,000 different types of steel wire products, serving more than 5,000 customers across various industries. Bansal Wire has a global presence, exporting products to over 50 countries with representatives in 14 nations.

The company operates four manufacturing units located in Mohan Nagar and Loni Industrial Area in Ghaziabad, and Bahadurgarh in Jhajjar, Haryana. Since 2021, Bansal Wire has built a sales team of over 50 experienced professionals to cover all regions of India.

Key Features

Extensive Product Range: Over 3,000 different types of steel wire products.
Diverse Customer Base: More than 5,000 customers across various industries.
Global Presence: Exporting to over 50 countries.
Manufacturing Facilities: Four units with state-of-the-art technology.

Financial Performance

Bansal Wire Industries Limited has shown robust financial growth, with revenue increasing by 1.99% and profit after tax (PAT) rising by 31.48% between the fiscal years ending March 31, 2023, and March 31, 2024.

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	₹1,264.01 Cr	₹749.05 Cr	₹695.48 Cr
Revenue	₹2,470.89 Cr	₹2,422.57 Cr	₹2,205.07 Cr
Profit After Tax	₹78.80 Cr	₹59.93 Cr	₹57.29 Cr
Net Worth	₹422.37 Cr	₹282.51 Cr	₹223.01 Cr
Reserves and Surplus	₹358.64 Cr	₹273.41 Cr	₹213.91 Cr
Total Borrowing	₹681.14 Cr	₹422.19 Cr	₹413.15 Cr

Key Performance Indicators (KPI)

ROE: 21.19%
ROCE: 18.46%
Debt/Equity: 1.48
RoNW: 18.27%
P/BV: 7.72
PAT Margin: 3.19%

Objects of the Issue

The company plans to use the net proceeds from the IPO for the following purposes:

Repayment or Prepayment: Of certain outstanding borrowings.
Working Capital: Funding the company's working capital requirements.
General Corporate Purposes

Conclusion

Bansal Wire Industries Limited's IPO presents a promising investment opportunity given the company's strong financial performance, extensive product range, and significant market presence. Investors should consider this IPO for a diversified and potentially rewarding addition to their portfolios.