Bansal Wires IPO Day 1: Check subscription status, GMP, lot size here

The initial public offering (IPO) of Bansal Wire Industries, valued at Rs 745 crore, garnered strong interest from both retail and non-institutional investors, achieving full subscription on Wednesday.

The IPO, which comprises a fresh issue of 29.1 million shares, commenced on July 3 and is scheduled to close on July 5, 2024.

As of 2:25 pm on Day 1, the Bansal Wire Industries IPO was oversubscribed at 1.13 times, with total bids for 2,41,55,840 shares against the offered 2,14,60,906 shares.

Specifically, the retail segment showed robust demand, subscribing 1.71 times, with bids received for 1,83,81,302 shares against the offered 1,07,30,453 shares. Meanwhile, the non-institutional investor (NII) segment subscribed 1.25 times, garnering bids for 57,45,190 shares compared to the offered 45,98,766 shares. 

 

Ahead of its IPO opening, the company successfully raised over Rs 223 crore through the anchor book round. As per the exchange filing, the company allocated 87,30,468 equity shares to anchor investors at a price of Rs 256 per share.

Here is all you need to know about the Bansal Wire IPO:

Lot size

For retail investors, the minimum investment required is Rs 14,848. The minimum investment size for sNII (Non-Institutional Investors) is 14 lots, equivalent to 812 shares, totaling Rs 207,872. For bNII, the minimum investment size is 68 lots, totaling 3,944 shares, amounting to Rs 1,009,664.

Allotment, listing details

The allotment for the Bansal Wire IPO are anticipated to be finalised on Monday, July 8, 2024. The IPO is scheduled to list on both the BSE and NSE, with the tentative listing date set for Wednesday, July 10, 2024.

GMP

The Grey Market Premium (GMP) of the company is Rs 60, indicating a listing gain of 23.4 per cent for Bansal Wire on the bourses.

Lead managers

SBI Capital Markets Limited and Dam Capital Advisors Ltd (formerly known as IDFC Securities Ltd) are serving as the book running lead managers for the Bansal Wire IPO. KFin Technologies Limited has been appointed as the registrar for the issue.

Financials

Between the financial years ending March 31, 2023, and March 31, 2024, Bansal Wire Industries Limited reported a 1.99 per cent increase in revenue to Rs 2,470 crore and a 31.48 per cent rise in profit after tax (PAT) to Rs 78.8 crore.

Should you subscribe?

According to domestic brokerage firm Anand Rathi, Bansal Wire Industries Limited has achieved a revenue of Rs 2,466 crore in Fiscal 2024, solidifying its strong market position and brand reputation. 

Serving a diverse customer base exceeding 5,000 clients across various industrial sectors, analysts noted, the company demonstrates robust market presence.

With a Price-to-Earnings (P/E) ratio of 50.8 times based on FY24 earnings, Bansal Wire Industries Limited boasts a market capitalisation of Rs 4,007.8 crore post-equity share issuance, equating to a market cap-to-sales ratio of 1.62 times its FY24 earnings.

The company and its subsidiary, Bansal Steel & Power Limited, offer an extensive portfolio of steel wire products, totaling over 3,000 SKUs across high carbon steel, mild steel (low carbon), and stainless-steel wires. Bansal Wire Industries Limited itself offers approximately 2,000 SKUs, while its subsidiary contributes around 1,500 SKUs, Anand Rathi highlighted in a note.

Given these factors, analysts at Anand Rathi have recommended a "Subscribe – Long Term" rating for the IPO, reflecting confidence in the company's strategic positioning and growth prospects in the steel wire manufacturing sector.