Bansal Wire Industries IPO: The shares of Bansal Wire Industries Ltd on Wednesday made a stellar debut on the stock exchanges. The company’s stock listed on the BSE at Rs 356, which is a gain of 39.4 per cent over its issue price of Rs 256 apiece.
“This impressive performance outshines even the pre-listing buzz,” said Shivani Nyati, head of wealth at Swastika Investmart Ltd.
The Bansal Wire Industries IPO, which was open for public subscription between July 3 and July 5, received a robust subscription, “highlighting significant investor confidence in Bansal Wire’s established position, diverse product portfolio, and consistent financial performance”, Nyati added.
Interestingly, the 39.4% listing gains in Bansal Wire Industries come at a time when the market is trading in negative territory. The BSE Sensex was down over 300 points in the early trade, while the NSE Nifty was lower by 100 points.
Bansal Wire Listing: What Should Investors Do Today?
On the listing day, Bansal Wire Industries, a leading manufacturer of steel wire products, surpassed pre-listing expectations with a stellar debut on the stock exchanges.
“The company operates in a highly fragmented and competitive market. However, careful consideration of the identified risks is still crucial. Investors are advised to hold their position with a stop-loss of Rs 321,” Nyati.
Bansal Wire Industries IPO Details
The Rs 745-crore Bansal Wire Industries IPO received bids for 1,27,85,22,420 shares as against 20,371,094 shares on offer on the final day of bidding, getting 62.76 times subscription. It was open for public subscription between July 3 and July 5, while its allotment is likely to take place on July 6.
The quota for non-institutional investors received 54.21 times subscription, while retail individual investors (RIIs) portion got subscribed 14.37 times. The qualified institutional buyers (QIB) category received 153.86 times subscription so far.
The Bansal Wire Industries IPO is an entirely fresh issue of equity shares worth Rs 745 crore, with no offer-for-sale (OFS) component.
The price band of the IPO was fixed at Rs 243-Rs 256 per share. A day before its IPO, Bansal Wire Industries on Tuesday garnered Rs 223 crore from anchor investors.
The funds will be used for the payment of debt, to support the working capital requirements of the company, and for general corporate purposes.
Bansal Wire Industries is engaged in the business of manufacturing and exporting steel wires. It operates in three broad segments’ high carbon steel wire, mild steel wire (low carbon steel wire) and stainless steel wire.
Also, the company plans to add a new segment of specialty wires through its upcoming plant in Dadri, which will help it grow and expand its market presence in the upcoming fiscal.
The company’s total income increased at a CAGR of 28 per cent to Rs 2,422.56 crore in FY23 from Rs 1,480.41 crore in fiscal 2021, and profit after tax (PAT) increased at a compound annual growth rate (CAGR) of 21.7 per cent to Rs 59.93 crore in FY23 from Rs 40.46 crore in FY21.
SBI Capital Markets and DAM Capital Advisors are the book running lead managers to the issue.
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