Bansal Wire Industries Secures Rs 223 Crore from Anchor Investors Ahead of IPO

Bansal Wire Industries has raised over Rs 223 crore from anchor investors before its initial public offering (IPO). Among the investors are SBI Mutual Fund and HDFC Mutual Fund. The IPO, comprising a fresh issue of Rs 745 crore equity shares, will be open from July 3-5, with funds aimed at debt repayment and working capital.

Steel wire manufacturer Bansal Wire Industries announced on Tuesday that it has successfully raised over Rs 223 crore from anchor investors ahead of its upcoming initial public offering (IPO). This pre-IPO funding round saw notable participation from major institutional investors, including SBI Mutual Fund (MF), HDFC MF, and Kotak Mahindra MF, according to information released on the BSE's official website.

The allocation involved distributing 87.30 lakh shares to 18 funds at a price of Rs 256 per share, which marks the upper end of the IPO's price band. The total value of this transaction aggregates to Rs 223.5 crore. The IPO itself is a fresh issue entirely, valued at Rs 745 crore, with shares priced between Rs 243 to Rs 256 each. The subscription window for the public is set to open between July 3 and July 5. Proceeds from the IPO will be directed towards debt repayment, working capital needs, and other corporate purposes.

Bansal Wire Industries specializes in manufacturing and exporting a wide range of steel wires, including high carbon steel wire, mild steel wire, and stainless steel wire. The company is also planning to expand its product line by introducing specialty wires through a new plant in Dadri. In terms of financial performance, the company's total income has grown at a CAGR of 28% to Rs 2,422.56 crore in FY23 from Rs 1,480.41 crore in FY21. Their profit after tax (PAT) has also seen a significant increase, growing at a CAGR of 21.7% to Rs 59.93 crore in FY23 from Rs 40.46 crore in FY21. The IPO has set aside half of its issue for qualified institutional investors (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors. SBI Capital Markets and DAM Capital Advisors will serve as the book running lead managers for the issue.

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