Bansal Wire Industries Sets IPO Price Band for Rs 745-Crore Public Offering

Bansal Wire Industries has announced a price band of Rs 243 to Rs 256 per share for its Rs 745-crore IPO, set to open for public subscription from July 3-5. The funds will be used for debt payment, working capital, and corporate purposes. The company's income and profit have significantly increased over recent years.

Steel wire manufacturer Bansal Wire Industries has set a price band ranging from Rs 243 to Rs 256 per share for its Rs 745-crore initial public offering (IPO).

The public offering will be open for subscription between July 3 and 5, with bidding for anchor investors starting on July 2, the company declared.

This maiden public issue, entirely consisting of fresh equity shares worth Rs 745 crore, does not include an offer-for-sale (OFS) component.

The funds raised will be channeled towards debt repayment, supporting the company's working capital needs, and other general corporate purposes.

Bansal Wire Industries specializes in manufacturing and exporting steel wires across three segments—high carbon steel wire, mild steel wire, and stainless steel wire.

The company is also planning to introduce a new segment of specialty wires with its upcoming plant in Dadri, aimed at expanding its market presence in the forthcoming fiscal periods.

The company's total income saw an impressive CAGR of 28%, reaching Rs 2,422.56 crore in fiscal 2023 from Rs 1,480.41 crore in fiscal 2021. Profits after tax (PAT) rose at a CAGR of 21.7%, hitting Rs 59.93 crore in fiscal 2023 from Rs 40.46 crore in fiscal 2021.

Half of the issue size is reserved for qualified institutional investors (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors.

Investors can place bids for a minimum of 58 shares and in multiples of 58 shares thereafter.

SBI Capital Markets and DAM Capital Advisors are acting as the book-running lead managers for the issue.

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