Bansal Wire's ₹745-crore IPO to open on July 3: Check GMP, price band
Bansal Wire's ₹745-crore IPO to open on July 3: Check GMP, price band
The ₹745-crore initial public offering (IPO) of steel wire manufacturer Bansal Wire Industries will open for subscription on July 3, and conclude on July 5. The bidding for anchor investors will open for a day on July 2.
The company will sell its shares in the range of ₹243 to ₹256 apiece for its primary offering.
The grey market premium (GMP) of the company remained nil even after the price band was announced.
The grey market is an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the GMP to get an idea of the listing price.
The public offer consists completely a fresh issue of equity shares worth ₹745 crore, with no offer-for-sale (OFS) component.
Further, investors can bid for a minimum of 58 shares in one lot and in multiples of 58 shares thereafter.
About 50% of the issue size has been set aside for qualified institutional investors (QIBs), 35% for retail investors and the rest 15% for non-institutional investors.
The capital raised will be utilised for the payment of debt, to support the working capital requirements of the company, and for general corporate purposes.
Bansal Wire Industries manufactures and exports steel wires. The company operates in three broad segments — high carbon steel wire, mild steel wire (low carbon steel wire) and stainless steel wire.
Additionally, 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 fiscals.
Its total income increased at a CAGR of 28% to ₹2,422.56 crore in fiscal 2023 from ₹1,480.41 crore in fiscal 2021, and profit after tax (PAT) rose at a compound annual growth rate (CAGR) of 21.7% to ₹59.93 crore in fiscal 2023, from ₹40.46 crore in fiscal 2021.
SBI Capital Markets and DAM Capital Advisors are the book running lead managers to the issue.
The allotment for the Bansal Wire IPO is expected to be finalised on July 8, 2024. The stock will be listed on BSE, NSE with tentative listing date fixed as July 10, 2024.