Bansal Wire Industries Limited is launching an IPO with a fresh issue of 2,91,01,562 shares worth INR 745 crores. The company aims to repay debts, invest in its subsidiary, fund working capital, and for general purposes.
Bansal Wire IPO – Important Dates
| Bansal Wire Industries Limited IPO Date | July 3, 2024 to July 5, 2024 |
| Bansal Wire Industries Limited IPO Listing Date | July 10, 2024 |
| Bansal Wire Industries Limited IPO Price | INR 243-256 per share |
| Bansal Wire Industries Limited IPO Lot Size | 58 shares |
| Bansal Wire Industries Limited IPO Total Issue Size | INR 745 crores |
| Bansal Wire Industries Limited IPO Basis of Allotment | July 8, 2024 |
| Bansal Wire Industries Limited IPO Initiation of Refunds | July 9, 2024 |
| Bansal Wire Industries Limited IPO Credit of Shares to Demat | July 9, 2024 |
| Bansal Wire Industries Limited IPO Issue Type | Book Built Issue IPO |
| Bansal Wire Industries Limited IPO Listing At | BSE NSE |
Bansal Wire Industries Limited IPO – Company Profile
Bansal Wire Industries Limited, with its subsidiary, offers over 3000 SKUs in high carbon, mild, and stainless steel wires. Operating from four facilities, it has a strong presence in northern and western India, generating significant revenue.
They operate in high carbon, mild, and stainless steel wire segments and are adding specialty wires at their Dadri plant. Their product range varies from 0.04 mm to 15.65 mm in various steel grades and applications.
They source raw materials from a diversified base, including top suppliers like the Steel Authority of India, Rashtriya Ispat Nigam, and JSW Steel. This ensures competitive prices, quality, and quantity assurance for the steel wire products.
Bansal Wire Industries Ltd IPO Fundamental Analysis
Bansal Wire Industries Limited Technologies’ financial analysis reveals a mixed performance. Revenue has grown year-over-year, while profitability and EPS have increased, reflecting improved financial performance. However, liquidity challenges and lower inventory turnover pose operational considerations.
- Revenue Trend: The revenue increased from ₹21,983.58 million in March 2022 to ₹24,130.08 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 24,660.31 million.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹572.90 million in March 2022 to ₹787.98 million by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹4.58 in March 2022 to ₹6.18 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 25.69% to 18.27%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Bansal Wire IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in million) | 21,983.58 | 24,130.08 | 24,660.31 |
| Equity (₹ in million) | 2,230.12 | 2,825.14 | 4,611.40 |
| Expenses (₹ in million) | 21,269.38 | 23,410.18 | 23,638.35 |
| Profit and Loss After Tax (₹ in million) | 572.90 | 599.30 | 787.98 |
| Diluted EPS only (₹) | 4.58 | 4.70 | 6.18 |
| Return on Net Worth (%) | 25.69 | 21.21 | 18.27 |
| NAV per Equity Share (₹) | 17.50 | 22.17 | 33.14 |
| Total Assets (in million) | 6,954.83 | 7,490.52 | 12,640.10 |
| Total Liabilities (in millions) | 4,724.71 | 4,665.39 | 8,028.70 |
| Debt Equity Ratio | 1.85 | 1.49 | 1.48 |
| Current Ratio (in times) | 1.62 | 2.09 | 1.51 |
| Inventory Turnover Ratio | 9.52 | 9.49 | 8.85 |
Bansal Wire Industries Limited IPO Peer Comparison
Bansal Wire Industries Limited shows strong EPS and moderate RoNW compared to Rajratan Global Wire, DP Wires, and Bedmutha Industries, indicating competitive positioning and financial performance.
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in million) |
| Bansal Wire Industries Limited | 24,708.86 | 5 | – | 6.18 | 18.46 | 33.14 |
| Rajratan Global Wire Limited | 8,986.80 | 2 | 35.88 | 14.15 | 15.41 | 97.03 |
| DP Wires Limited | 12,213.10 | 10 | 19.29 | 23.43 | 17.39 | 145.93 |
| Bedmutha Industries Limited | 7,481.47 | 10 | 38.65 | 6.28 | 19.04 | 37.23 |
Bansal Wire Industries Ltd IPO Objective
Bansal Wire Industries Limited’s main objectives are to manage and optimize borrowings, support subsidiary investments, and effectively fund its operational working capital needs.
- Repayment or prepayment of all or a portion of certain outstanding borrowings availed by the company: The company intends to utilize INR 452.68 crores from the Net Proceeds to repay or prepay various outstanding borrowings, reducing debt and optimizing debt servicing costs to support business growth and expansion initiatives.
- Investment in Subsidiary for repayment or prepayment of all or a portion of certain of its outstanding borrowings: The company plans to utilize INR 93.71 crore to repay or prepay various outstanding loans of its Subsidiary, considering factors like interest costs, prepayment penalties, and lender conditions.
- Funding working capital requirements: The company plans to use INR 60 crores from Net Proceeds to fund working capital needs, aiming to optimize its debt-to-equity ratio, reduce interest expenses, enhance financial flexibility, and support future growth and expansion, including a new plant at Dadri.
- General corporate purposes: The Company will deploy the balance of funds towards general corporate purposes, including meeting ongoing business expenses, strategic initiatives, business development, lease payments, growth initiatives, consultant fees, employee welfare, administration, and other operational costs.
Bansal Wire IPO Risks And Challenges
Bansal Wire Industries Limited’s risks include reliance on top suppliers for raw materials, operational challenges at North Indian facilities, and managing cost fluctuations amid global uncertainties, which can impact operations, finances, and customer relations.
- The company’s reliance on the top 10 suppliers for raw materials and work-in-progress goods poses risks, such as shortages or delays, that could significantly impact business operations, financial health, and cash flow.
- Their North Indian manufacturing facilities face operational risks, including equipment failures and compliance issues. In 2020, COVID-19 lockdowns temporarily shut down facilities, impacting production and customer relations.
- Past cost fluctuations in raw materials were managed by adjusting product prices, but global demand shifts and supply uncertainties pose risks. Unable to pass on cost increases may adversely impact demand and financial health.
Bansal Wire Industries Ltd IPO – Industry & Market Potential
The PLI scheme for specialty steel has seen partial investment realization, with significant downstream capacity additions and production increases expected by fiscal 2025. PLI 2.0 plans to expand incentives to strategic steel segments with revised rates.
India aims to boost steel consumption to 158 kg per capita by 2030, expand capacity to 300 million tonnes, produce high-end steel locally for critical sectors, and become a net steel exporter by eliminating imports.
The Indian steel wire industry anticipates growth, with increasing demand for high-carbon wires from the infrastructure and automotive sectors. Specialty wires are expected to grow, benefiting from automotive and infrastructure investments in the next five years.
Bansal Wire Industries Limited IPO – Type of Offer
Bansal Wire Industries Limited is launching an IPO with a fresh issue of 2,91,01,562 shares worth INR 745 crores. The company aims to repay debts, invest in its subsidiary, fund working capital, and for general purposes.
Bansal Wire Industries Ltd IPO Offer Size
The offer size of Bansal Wire Industries Limited is INR 745 crores, consisting of a fresh issue of 2,91,01,562 shares. The company seeks funds to repay debts, invest in its subsidiary, and fund working capital for general purposes.
Bansal Wire Industries Limited IPO Allotment Structure
Bansal Wire Industries Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Bansal Wire Industries Limited IPO?
To apply for the Bansal Wire Industries Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Bansal Wire Industries Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Bansal Wire Industries Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Bansal Wire Industries Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Bansal Wire Industries Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Bansal Wire Industries Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Bansal Wire Industries Limited IPO:
● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Bansal Wire Industries Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Bansal Wire Industries Limited Ltd IPO Offer Registrar
The registrar for the Bansal Wire Industries Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFIN TECHNOLOGIES LIMITED
Selenium Tower- B, Plot 31-32,
Gachibowli, Financial District,
Nanakramguda, Serilingampally,
Hyderabad-500 032, Telangana, India.
Tel No.: +91 40 6716 2222
Email: [email protected]
Website: www.kfintech.com
Bansal Wire Industries Limited Limited IPO – FAQs
The allotment date of the Bansal Wire Industries Limited IPO is July 8, 2024.
The price band of the issue is INR 243-256 per share.
The offer size of Bansal Wire Industries Limited is INR 745 crores, consisting of a fresh issue of 2,91,01,562 shares. The company seeks funds to repay debts, invest in its Subsidiary, and fund working capital for general purposes.
The listing date of Bansal Wire Industries Limited’s IPO is July 10, 2024.
