Bansal Wire Industries IPO

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03rd – 05th Jul 2024
10 Jul 2024
₹243 – ₹256
58 shares (₹14848)
745cr

Schedule

Issue open date 03 Jul 2024
Issue close date 05 Jul 2024
UPI mandate deadline 05 Jul 2024 (5 PM)
Allotment finalization 08 Jul 2024
Refund initiation 09 Jul 2024
Share credit 09 Jul 2024
Listing date 10 Jul 2024
Mandate end date 20 Jul 2024
Lock-in end date for anchor investors (50%) 07 Aug 2024
Lock-in end date for anchor investors (remaining) 06 Oct 2024

About

Incorporated in 1985, Bansal Wire Industries is a stainless steel wire manufacturing company operating primarily in three broad segments, i.e., high carbon steel wire, mild steel wire (low carbon steel wire), and stainless steel wire. The company will be also adding a new segment of specialty wires through its manufacturing plant in Dadri. The Company along with its Subsidiary, Bansal Steel & Power Limited, 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, and market and sell its products under the brand name ‘BANSAL’.

To ensure pan India presence across all regions of India, i.e., The company is present in 22 states and six union territories, by way of its dealer distribution network. The company also exports its products to several countries, with 14 global representatives, covering countries like Bangladesh, Brazil, France, Germany, Israel, Italy, the Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the UK, the USA, and Vietnam.


Financials



Issue size

Funds raised in the IPO Amount
Overall ₹745 crores
Fresh issue ₹745 crores
Offer for sale

Utilisation of proceeds

Purpose INR crores (%)
Debt reduction 546 (73%)
Working capital 60 (8%)
General corporate purposes 139 (19%)

*All figures except EPS are in ₹ crores

Strengths

  • Leading steel wire manufacturer in India with strong market presence: Largest in stainless steel wire (72,176 MTPA) and second largest overall (206,466 MTPA) with 20% and 4% market share as of March 31, 2023.
  • Diverse customer base across sectors: Over 5,000 customers spanning various industries; no single customer exceeds 5% of sales, and no sector exceeds 25%.
  • Extensive product range: Offers 3000+ SKUs, balancing high volume and high margin products in the steel wire industry.

Risks

  • Raw material price volatility risk: Reliance on fluctuating wire rod coils and zinc costs could impact business, finances, and operations.
  • Historical negative cash flows: Past periods have seen negative cash flows, a trend that may persist.
  • Geographical concentration and expansion risks: Primarily focused in northern India, expansion into new regions poses liabilities and investment risks.
  • International distribution dependency: Presence in 14 countries through select representatives; changes in these partnerships could affect operations and finances.

Note:

  • The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
  • The allotment status will be available by July 09, 2024, on the registrar’s website and the BSE website.