Bansal Wire Industries Limited IPO (Bansal Wire IPO) Review –
Bansal Wire Industries Limited IPO (Bansal Wire IPO) is set to open from 3rd July 2024 to 5th July 2024. This article will analyze the financials , strengths and weaknesses of the Bansal Wire Industries Limited IPO (Bansal Wire IPO). Keep scrolling below to read more!
Bansal Wire Industries Limited IPO (Bansal Wire IPO) Overview –
Established in 1985, Bansal Wire Industries Limited is the largest stainless steel wire manufacturing company and the second largest steel wire manufacturing company by volume in India.
The company operates in three main segments: high carbon steel wire, low carbon steel wire (mild steel wire), and stainless steel wire.
The company makes over 3,000 different types of steel wire products, ranging in size from from as thin as 0.04 mm to as thick as 15.65 mm. They have more than 5,000 customers in different sectors, which helps the company grow.
To reduce risk, the company doesn’t rely too much on one customer or one type of customer. They also use a pricing model that helps them deal with changes in material costs.
The company has a pan-India presence and operates in over 50 countries through product exports, solidifying its position as a key player in the global market.
The company exports products to over 50 countries. It has 14 global representatives covering Bangladesh, Brazil, France, Germany, Israel, Italy, Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the United Kingdom, the United States, and Vietnam.
The company has four manufacturing units in Mohan Nagar, Ghaziabad, Loni Industrial Area, Ghaziabad and Bahadurgarh, Jhajjar, Haryana. Out of four units two are located in Loni Industrial Area, Ghaziabad.
Since 2021, the company has established a sales team of over 50 experienced professionals to cover all regions of India and serve 5,000+ customers in various sectors.
Bansal Wire Industries Limited IPO (Bansal Wire IPO) Synopsis-
Bansal Wire Industries Limited IPO (Bansal Wire IPO) is set to be open from 3rd July 2024 to 5th July 2024, offering only fresh issue of 2.91 crore shares aggregating to Rs 745.00 crores. This NSE,BSE IPO follows a Book Built Issue IPO.
The total issue size of this IPO amounts to Rs. 1952.03 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 3rd July 2024 |
| Closing Date | 5th July 2024 |
| Lot Size | 58 Shares |
| Face Value | Rs. 5 |
| IPO Size | Rs. 745 Cr |
| Fresh Issue | Rs. 745 Cr |
| IPO Price Range | Rs. 243 – 256 |
| Min. Investment | Rs. 14,848 |
| Offer for Sale (OFS) | N/A |
| Employee Discount | N/A |
| Basis of Allotment | 8th July 2024 |
| Refunds | 9th July 2024 |
| Listing Date | 10th July 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Bansal Wire Industries Limited IPO (Bansal Wire IPO) Book Running Lead Managers –
- SBI Capital Markets Limited
- Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd)
Bansal Wire Industries Limited IPO (Bansal Wire IPO) Registrar to the offer –
The registrar for the Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) is Kfin Technologies limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company proposes to utilize the Net Proceeds from the IPO towards the achievement of the following objects:
- Repayment or prepayment of all or a portion of certain outstanding borrowings availed by our Company and our Subsidiary;
- Funding the working capital requirements of the company and
- General corporate purposes.
Key Performance Indicator –
The market capitalization of Emcure Pharmaceuticals Limited is Rs 4007.83 Cr.
KPI as of December 31, 2023.
| Earning Per Share (EPS): Post IPO | ₹5.03 per Equity Share |
| Price/Earning P/E Ratio: Post IPO | 50.86 |
| Return on Net Worth (RoNW): | 18.27% |
| PAT Margin(%) | 3.19% |
| Net Asset Value (NAV): | ₹22.17 per Equity Share |
Financial Status –
Bansal Wire Industries Limited’s revenue increased by 1.99% and profit after tax (PAT) rose by 31.48% between the financial year ending with March 31, 2024 and March 31, 2023.
| Particulars(in Rs. Crores) | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
| Revenue From Operations | 2466.03 | 2413.01 | 2,198.36 |
| Expenses | 2363.84 | 2341.01 | 2126.94 |
| Net Income | 78.80 | 59.93 | 57.29 |
| Total Assets | 1264.01 | 749.05 | 695.48 |
| Total Borrowings | 681.14 | 422.19 | 413.15 |
Evaluation of P/E Ratio
The P/E Ratio of Bansal Wire Industries Limited is 36.07.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is 28.97.
Peers of Bansal Wire Industries Limited –
Bansal Wire Industries Limited peer comparison with similar listed entities. (As on March 31, 2023)
| Company Name | EPS (Basic) | NAV (per share) (Rs) | P/E | RoNW (%) | P/BV | Financial statements |
|---|---|---|---|---|---|---|
| Bansal Wire Industries Limited | 6.18 | 33.14 | 41.41 | 18.46 | Consolidated | |
| Rajratan Global Wire Ltd. | 14.15 | 97.03 | 35.88 | 15.41 | 7.66 | Consolidated |
| DP Wires Limited | 23.43 | 145.93 | 19.29 | 17.39 | Consolidated | |
| Bedmutha Industries Ltd. | 6.28 | 37.23 | 38.65 | 19.04 | Consolidated |
Bansal Wire Industries Limited IPO (Bansal Wire IPO) Strengths –
- Bansal Wire Industries employs a risk management strategy that ensures no single customer accounts for more than 5% of total sales and no one sector accounts for more than 25% of sales.
- The company adopts a “Cost Plus model” operational strategy, effectively insulating it from fluctuations in commodity prices.
- Expertise in steel wire manufacturing since 1938, spanning three generations.
- Exports to over 50 countries, enhancing international footprint
Bansal Wire Industries Limited IPO (Bansal Wire IPO) Weakness –
- Limited 35-45-day inventory makes operations vulnerable to supply chain disruptions.
- Dependence on four facilities in Uttar Pradesh and Haryana risks regional disruptions.
- Potential non-renewal of leasehold facilities could disrupt operations and impact finances.
- Overseas market distribution relies on a few representatives; changes could impact operations and financial health.
Bansal Wire Industries Limited IPO (Bansal Wire IPO) GMP Today –
IPO’s last GMP is ₹65, last updated Jul 1st 2024. With the price band of 256.00, IPO’s estimated listing price is ₹321 (cap price + today’s GMP). The expected percentage gain/loss per share is 25.39%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Conclusion –
The issue appears aggressively priced. Well-informed investors may park moderate fund for long term.
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
