Bansal Wire Industries files draft papers to mobilise Rs 745 cr via IPO

Steel wire manufacturer Bansal Wire Industries Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 745 crore through an Initial Public Offering (IPO).

The maiden public issue is an entirely fresh issue of equity shares with no Offer-For-Sale (OFS) component, according to the Draft Red Herring Prospectus (DRHP) filed on Thursday.

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 fiscals.

The company's total income increased at a CAGR of 28 per cent to Rs 2,422.56 crore in fiscal 2023 from Rs 1,480.41 crore in fiscal 2021, and Profit After Tax (PAT) surged at a Compound Annual Growth Rate (CAGR) of 21.7 per cent to Rs 59.93 crore in fiscal 2023 from Rs 40.46 crore in fiscal 2021.

SBI Capital Markets and DAM Capital Advisors are the book running lead managers to the issue.