Bansal Wire Industries Initial Public Offering Opens for Subscription

Bansal Wire Industries Limited, a renowned steel wire manufacturer, is set to launch its Initial Public Offering (IPO) valued at a staggering Rs 745 crore. The IPO, entirely comprising a fresh issue of 29.1 million shares, is bound to attract significant investor interest.

The subscription period for the Bansal Wire IPO commences on July 03, 2024, and is scheduled to close on July 05, 2024. The price band for the IPO has been set at Rs 243 to Rs 256 per share, with a minimum lot size for applications consisting of 58 shares.

The company plans to utilize the proceeds from the IPO primarily for the repayment or prepayment of certain outstanding borrowings, meeting working capital requirements, and general corporate purposes.

Established in December 1985, Bansal Wire Industries Limited specializes in the manufacturing of stainless steel wire. The company operates across three primary segments, offering a diverse range of over 3,000 wire products in various sizes.

With a customer base exceeding 5,000 clients across different industries, Bansal Wire Industries Limited practices diversification to mitigate risks and employs a flexible pricing strategy to manage material cost fluctuations effectively.

Bansal Wire Industries Limited operates manufacturing facilities in various locations, including Mohan Nagar and Loni Industrial Area in Ghaziabad, as well as Bahadurgarh and Jhajjar in Haryana. The company boasts a strong market position and brand reputation.

The Grey Market Premium (GMP) for Bansal Wire Industries Limited stands at Rs 65, indicating positive sentiment among investors and potential listing gains for the company.

SBI Capital Markets Limited and Dam Capital Advisors Ltd are serving as the book running lead managers for the IPO, while KFin Technologies Limited has been appointed as the registrar for the issue.

Analysts from Anand Rathi have recommended a ‘Subscribe – Long Term’ rating for the IPO, citing the company’s solid market presence and growth prospects in the steel wire manufacturing sector.