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.

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.