Bansal Wire Industries Limited IPO
- IPO Date03 Jul, 2024 to 05 Jul, 2024
- Listing Date10 Jul, 2024
- Face Value₹5 per share
- Issue Price₹243 to ₹256 per share
- Lot Size58 Shares
- Minimum Investment₹14,848
- Listing AtBSE, NSE
- Total Issue Size2,91,01,562 Shares
(aggregating up to ₹745.00 Cr) - Fresh Issue2,91,01,562 Shares
(aggregating up to ₹745.00 Cr)
- Offer for Sale-
- Issue TypeBook Built Issue IPO
- Share holding pre issue12,74,54,390
- Shareholding post issue15,65,55,952
IPO Dates
Closing Date
05 Jul, 2024
Initiation of Refunds
09 Jul, 2024
Listing Date
10 Jul, 2024
03 Jul, 2024
Opening Date
08 Jul, 2024
Basis of Allotment
09 Jul, 2024
Credit of Shares
Bansal Wire Industries Limited Lot Size
Investors can bid for a minimum of 58 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| S-HNI (Min) | 14 | 812 | ₹2,07,872 |
| Retail (Max) | 13 | 754 | ₹1,93,024 |
| Retail (Min) | 1 | 58 | ₹14,848 |
| B-HNI (Min) | 68 | 3944 | ₹10,09,664 |
| S-HNI (Max) | 67 | 3886 | ₹9,94,816 |
Bansal Wire Industries Limited Promoter Holding
The Promoters of the company are Arun Gupta, Anita Gupta, Pranav Bansal and Arun Kumar Gupta HUF.
| Pre Issue Share Holding | Post Issue Share Holding |
|---|---|
| 95.78% | - |
Bansal Wire Industries Limited COMPANY INFORMATION
Bansal Wire IPO is a book built issue of Rs 745.00 crores. The issue is entirely a fresh issue of 2.91 crore shares. Bansal Wire IPO opens for subscription on July 3, 2024 and closes on July 5, 2024. The allotment for the Bansal Wire IPO is expected to be finalized on Monday, July 8, 2024. Bansal Wire IPO will list on BSE, NSE with tentative listing date fixed as Wednesday, July 10, 2024. Bansal Wire IPO price band is set at ₹243 to ₹256 per share. The minimum lot size for an application is 58 Shares. The minimum amount of investment required by retail investors is ₹14,848. The minimum lot size investment for sNII is 14 lots (812 shares), amounting to ₹207,872, and for bNII, it is 68 lots (3,944 shares), amounting to ₹1,009,664. SBI Capital Markets Limited and Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd) are the book running lead managers of the Bansal Wire IPO, while Kfin Technologies Limited is the registrar for the issue. Refer to Bansal Wire IPO RHP for detailed information.
Incorporated in December 1985, Bansal Wire Industries Limited is a stainless steel wire manufacturing company.
The company operates in three main segments: high carbon steel wire, low carbon steel wire (mild steel wire), and stainless steel wire.
The company makes over 3,000 different types of steel wire products, ranging in size from very thin to very thick. They have more than 5,000 customers in different industries, which helps the company grow.
To reduce risk, the company doesn't rely too much on one customer or one type of customer. They also use a pricing model that helps them deal with changes in material costs.
The company has a presence across India and operates in over 50 countries through product exports, solidifying its position as a key player in the global market.
The company exports products to over 50 countries. It has 14 global representatives covering Bangladesh, Brazil, France, Germany, Israel, Italy, Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the United Kingdom, the United States, and Vietnam. Our export turnover has grown at a CAGR of 47.15% in the last three fiscal years.
The company has four manufacturing units in Mohan Nagar, Ghaziabad, Loni Industrial Area, Ghaziabad and Bahadurgarh, Jhajjar, Haryana. Out of four units two are located in Loni Industrial Area, Ghaziabad.
Since 2021, the company has established a sales team of over 50 experienced professionals to cover all regions of India and serve 5,000+ customers in various sectors.
Bansal Wire Industries Limited IPO Analysis
Summary of the IPO
Bansal Wire Industries Limited, originally incorporated as a private limited company on December 11, 1985, transitioned to a public limited company in 1995. The company is issuing 29,101,562 equity shares at a price of ?256 per share, including a share premium of ?251. The IPO opened on July 3, 2024, and closed on July 5, 2024 .
Company Profile
Business Overview
Bansal Wire Industries Limited (BWIL) manufactures various kinds of wires used across multiple sectors such as power, automotive, infrastructure, agriculture, and consumer durables. The company produces over 3,000 stock-keeping units (SKUs), with wire sizes ranging from 0.04 mm to 15.65 mm. BWIL has a significant global presence, exporting to over 50 countries .
Financial Performance
BWIL has shown consistent financial growth, with revenues increasing at a compound annual growth rate of 15% from fiscal 2019 to 2023. The company's return on equity (ROE) has been significantly higher than its peers, indicating strong profitability and efficient shareholder value generation .
Important Points
Key Milestones
- 1985: Company incorporated
- 1986: Recorded production of 102 tonnes in the first month
- 1991: Commenced cable wire manufacturing
- 1995: Started stainless steel wire production
- 2003: Began manufacturing galvanized wire
- 2007: Started high carbon wire production
- 2015: Launched spring wires and auto cables for the automotive industry
Pros and Cons
Pros
- Diverse Product Range: BWIL produces a wide variety of wires catering to different sectors.
- Strong Financial Performance: The company has demonstrated strong revenue growth and profitability.
- Global Presence: Significant export footprint in over 50 countries.
- High ROE: Consistently higher return on equity compared to peers.
Cons
- Dependency on Skilled Personnel: High dependence on skilled labor, which poses a risk if they cannot retain or attract talent.
- Related-Party Transactions: Potential conflicts of interest due to related-party transactions.
- High Working Capital Requirements: Substantial working capital needs may necessitate additional financing.
- Unappraised Fund Utilization: The objects of the issue have not been appraised by any financial institutions, leading to potential variations in fund utilization .
Conclusion
Bansal Wire Industries Limited's IPO presents a robust investment opportunity backed by strong financial performance and a diverse product range. However, potential investors should consider the risks related to high working capital requirements and dependency on skilled personnel. The company's established global presence and consistent return on equity make it a competitive player in the wire manufacturing industry.
FAQs About Bansal Wire Industries Limited Ipo
Bansal Wire Industries Limited IPO will open on 03 Jul, 2024 and close on 05 Jul, 2024. Investors must apply within this period to participate.
The Bansal Wire Industries Limited IPO price band is set between ₹243.00 and ₹256.00 per share. The minimum lot size is 58, requiring an investment of at least ₹14848.00.
The Bansal Wire Industries Limited IPO shares are expected to be listed on 10 Jul, 2024, subject to regulatory approvals and final allotment.
You can track your Bansal Wire Industries Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Bansal Wire Industries Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.