Bansal Wire Industries IPO to open on July 3; sets price band at ₹243-256 per share

Bansal Wire Industries IPO price band: The Bansal Wire Industries Limited price band has been fixed in the range of ₹243 to ₹256 per equity share of the face value of ₹5. The Bansal Wire Industries IPO date of subscription is scheduled for Wednesday, July 3, and will close on Friday, July 5. The allocation to anchor investors for the Bansal Wire Industries IPO is scheduled to take place on Tuesday, July 2.

The floor price is 48.60 times the face value of the equity shares and the cap price is 51.20 times. The price-to-earnings ratio based on basic and diluted EPS for fiscal 2024 for the company at the floor price 39.32 times and at the cap price is 41.42 times as compared to the average industry peer group P/E ratio of 32.72 times. Bids could be made for a minimum of 58 equity shares and in multiples of 58 equity shares thereafter. 

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Bansal Wire Industries IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Bansal Wire Industries Ltd is a steel wire manufacturing company. Over 3,000 stock keeping units (SKUs) are offered by Bansal Wire Industries, and its subsidiary, Bansal Steel & Power Limited. The company offers roughly 2000 SKUs and their subsidiary offers 1,500 SKUs. The three main segments of the company's offerings are high carbon steel wire, mild steel wire (low carbon steel wire), and stainless steel wire. In addition, the corporation and its subsidiaries share over 500 SKUs in common.

Tentatively, Bansal Wire Industries IPO basis of allotment of shares will be finalised on Monday, July 8, and the company will initiate refunds on Tuesday, July 9, while the shares will be credited to the demat account of allottees on the same day following refund. Bansal Wire Industries share price is likely to be listed on BSE and NSE on Wednesday, July 10.

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As per the Red Herring Prospectus (RHP), the company's listed peers are Rajratan Global Wire Ltd (with a P/E of 41.68), DP Wires Ltd (with a P/E of 18.94), and Bedmutha Industries Ltd (with a P/E of 37.52).

Between March 31, 2024, and March 31, 2023, Bansal Wire Industries Limited's profit after tax (PAT) climbed by 31.48% while its revenue increased by 1.99%.

Bansal Wire Industries IPO details 

Bansal Wire Industries IPO, which is worth ₹745 crore, comprises a fresh issue of 29,101,562 equity shares. There's no offer-for-sale (OFS) component. 

The firm's memorandum of association outlines its core objectives, as well as incidental and ancillary  goals that support them. These goals allow the company to: (i) carry out its current commercial operations; and (ii) carry out the projects that are suggested to be funded with the net proceeds.

The book running lead managers of the Bansal Wire IPO are SBI Capital Markets Limited and Dam Capital Advisors Ltd (formerly Idfc Securities Ltd), with Kfin Technologies Limited serving as the issue's registrar.

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