Bansal Wire Industries Ltd IPO

The Company along with its Subsidiary, BSPL, offers over 3000 SKUs (i.e., stock keeping units) in three broad segments, i.e., high carbon steel wire, mild steel wire (low carbon steel wire) and stainless steel wire, with the Company's offering of approximately 2000 SKUs and its Subsidiary's offering of 1500 SKUs. Further, there are approximately 500 SKUs which are common in both the Company and Subsidiary. High carbon steel wires refer to wires made from high carbon steel with 0.30% to 1.00% carbon and are known for their exceptional strength, hardness, and durability. They are used in applications where these properties are crucial, such as in the manufacturing of springs, cutting tools, and various industrial components that require resilience and resistance to wear and fatigue. Mild Steel Wire is made out of a low-carbon steel with a carbon content ranging from 0.05% to 0.25% and is known for its ductility, malleability, weldability, and versatile nature. They are commonly used in power & transmission, agriculture, poultry, fencing, and construction. Stainless steel wire is made from a corrosion-resistant alloy which is a combination of iron, chromium, nickel, and other elements and is used in consumer durables, hardware, automotive, agriculture and other general engineering products. The Company operates from its four established manufacturing facilities in the National Capital Region, India, with three manufacturing facilities in Ghaziabad (U.P.) and one manufacturing facility in Bahadurgarh (Haryana). Additionally, its Dadri facility has commenced its initial commercial production in the end of January, 2024, and as of March 31, 2024, is operating at a capacity of 3,000 metric tonnes of high carbon wires with 78.50% of the capacity utilisation. While the company has built its network in order to ensure pan India presence across all regions of India, i.e., it is present in 22 states and six union territories, by way of its dealer distribution network, it has robust revenue from operations in northern states and western states in India with 65.61%, 67.78% and 64.80% of revenue from operations generated from Delhi, Haryana, Maharashtra and Uttar Pradesh in Fiscals 2022, 2023, 2024, respectively.

Open Demat Account

50years

Bansal Wire Industries Ltd IPO Details

Details

Total Shares OfferedOffer to PublicRetail Max (Shares)Pre Issue Promoters HoldingExchangeIssue size
291.02 LTBA101.86 L938.08 LBSE₹ 745 Cr
IPO Open DateClose DateLot SizeMin InvestmentIssue TypeListing Date
03 Jul, 2405 Jul, 2458 ₹ 14,094 Book Building10 Jul, 24

Bansal Wire Industries Ltd IPO Dates

  • 03 Jul 2024

    Opening date

  • 05 Jul 2024

    Closing date

  • 08 Jul 2024

    Basis of
    Allotment

  • 09 Jul 2024

    Initiation of
    Refunds

  • 09 Jul 2024

    Credit of
    Shares

  • 10 Jul 2024

    Listing date

Details

SectorType
SectorSteel - Medium
Sub SectorSmall
Issue TypeBook Building

Subscription Status

*Values are in Lakhs

Investor TypeSubscription TimesShares Offered*Shares Bid*
QIB61.54x14550782895504630
NII54.21x4365234236660068
Retail14.37x10185547146359056
Employee0x00
Total43.93x291015631278523754

Subscription Status

Investor Type

QIB

NII

Retail

Employee

Total

*Values are in Lakhs

Bansal Wire Industries Ltd Financial Status

Income Statement

Balance Sheet

Particulars (in Rs. Crores)FY23FY22FY21
Revenue from operations90.6686.5763.89
EBITDA99.7795.0171.46
PAT59.9357.2940.47
Total Assets523.86552.31460.90
Share Capital16.1016.109.97
Total Borrowings363.66377.38336.55
Operating Activities (Net Cash)69.0465.7348.04
Investing Activities (Net Cash)-15.3422.10-0.05
Financing Activities (Net Cash)363.66377.38336.55
Net Cashflow0.840.440.68

Particulars (in Rs. Crores)

Revenue from operations

EBITDA

PAT

Total Assets

Share Capital

Total Borrowings

Operating Activities (Net Cash)

Investing Activities (Net Cash)

Financing Activities (Net Cash)

Net Cashflow

About Bansal Wire Industries Ltd

Bansal Wire Industries Limited was originally incorporated as a private limited company under the name of Bansal Wire Industries Private Limited on December 11, 1985, under the Companies Act, 1956, pursuant to a certificate of incorporation issued by the RoC. Thereafter, the Company was converted into a public limited company pursuant to a resolution passed by its Board at its meeting held on September 5, 1995 and a special resolution passed by its Shareholders at their annual general meeting held on September 29, 1995, and the name of the Company was changed to Bansal Wire Industries Limited, and a fresh certificate of incorporation consequent upon conversion from a private limited company to a public limited company was issued by the RoC on November 13, 1995.

India has been the second largest global steel producer since calendar year 2018. The steel wire industry has witnessed a significant growth at a compounded annual growth rate of 6.90% over Fiscals 2019-23, growing to 5.6 million tonnes, primarily owing to increasing infrastructure development activities across the country and growing production in the automobile industry. Demand is expected to log 8-10% at the compounded annual growth rate between Fiscals 2023 and 2028, growing to 8-9 million tonnes, due to increasing budget allocation of central and state governments for infrastructure development and expansion of the automobile industry.

Peer Comparison:

  • Rajratan Global Wire Ltd
  • D P Wires Ltd
  • Bedmutha Industries Ltd

Bansal Wire Industries Ltd IPO Key Points

Strengths

  • Steel wire manufacturers with revenue of Rs. 24,447.19 million in Fiscal 2024 with established market position and strong brand equity.
  • More than 5,000 customer base with presence across various sectors.
  • Economies of scale.
  • Product Portfolio with over 3,000 stock keeping units across the steel wire industry with good mix of high volume and better margin products.
  • Business model with stable and consistent margin profile.

Risk

  • The company relies substantially on its top 10 suppliers of the raw materials and work-in- progress goods used in its manufacturing processes. Any shortages, delay or disruption in the supply of the raw materials the company use in its manufacturing process may have a material adverse effect on its business, financial condition, results of operations and cash flows.
  • Any disruption, breakdown or shutdown of its manufacturing facilities may have a material adverse effect on its business, financial condition, results of operations and cash flows.
  • Its manufacturing facilities, and the company registered office are located on leasehold lands and rental basis. If the company is unable to renew existing leases or relocate its operations on commercially reasonable terms, there may be a material adverse effect on its business, financial condition and operations.

Strategy

  • Expansion of its customer base in north India and increase penetration in other geographies.
  • Focus on increasing its exports sales and growing sectors like automotive and infrastructure.
  • Entering into B2C segment steel products and establishing retail distribution network.
  • Increase in margin profile by focusing on high margin products and adding speciality wire segment.
  • Technological advancement of manufacturing facilities.
  • Steel wire manufacturers with revenue of Rs. 24,447.19 million in Fiscal 2024 with established market position and strong brand equity.
  • More than 5,000 customer base with presence across various sectors.
  • Economies of scale.
  • Product Portfolio with over 3,000 stock keeping units across the steel wire industry with good mix of high volume and better margin products.
  • Business model with stable and consistent margin profile.

How To Apply for Bansal Wire Industries Ltd Online?

Step 1:

Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.

Step 2:

From the list of open IPOs, select the IPO you want to invest.

Step 3:

Go through the IPO details like lot size, price band, about the company, etc.

Step 4:

Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.

Step 5:

Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.

Get your FAQs right

Bansal Wire Industries Ltd's IPO offers shares for up to ₹ 0.01 L It begins on Jul 3, 2024 and ends on Jul 5, 2024.

The price of Bansal Wire Industries Ltd IPO ranges between ₹243 to ₹256 per share.

The Bansal Wire Industries Ltd IPO opens on Jul 3, 2024 and closes on Jul 5, 2024.

The allotment for the Bansal Wire Industries Ltd IPO will be finalised on Jul 8, 2024. The shares will be listed on BSE and NSE on Jul 10, 2024.

The minimum lot size for Bansal Wire Industries Ltd IPO is 58 shares, priced between ₹243 to ₹256 per share.

The GMP (Grey Market Premium) of Bansal Wire Industries Ltd IPO fluctuates based on market demand and sentiment.

To check the allotment status of Bansal Wire Industries Ltd IPO, visit the registrar's website, select the IPO, enter your PAN Card number, Application Number, or DP Client ID, and click 'search.'

The Bansal Wire Industries Ltd IPO is getting listed on the BSE and NSE. Bidding opens on Jul 3, 2024, and closes on Jul 5, 2024. The allotment is finalised on Jul 8, 2024.

To apply for the Bansal Wire Industries Ltd IPO, download the BlinkX app, complete KYC, select the IPO, enter bid details, and submit. Verify UPI payment for shares allotment.